5 common losses seen in construction and general contracting : 5 part series part 4 of 5
General Contractor and Construction Insurance: Protecting Tools, Equipment & Materials From Theft
Tools, equipment, building materials, and other property are essential to virtually every construction business.
They can also represent a significant financial exposure when they are stolen, damaged, or lost.
For general contractors and construction companies, understanding how insurance can respond to tools, equipment, materials, and other property is an important part of building a complete risk-management program.
1. Stolen Tools
Contractors often rely on thousands of dollars worth of hand tools and power equipment to complete projects.
Example: A contractor arrives at a jobsite and discovers that thousands of dollars in tools were stolen overnight.
Replacing the equipment can be expensive, but the loss may also create project delays, additional rental costs, and lost productivity.
2. Stolen Building Materials
Construction materials stored at jobsites can also become targets for theft.
Lumber, copper, appliances, fixtures, wiring, and other materials can have substantial value.
Example: A contractor has materials delivered to a jobsite for an upcoming phase of construction, only to discover that the materials have been stolen before installation.
The contractor may then have to replace the materials while managing potential project delays.
3. Equipment Theft
Larger contractors may have significant investments in trailers, generators, compressors, lifts, skid steers, excavators, and other equipment.
Example: A piece of construction equipment is stolen from a jobsite or storage location over a weekend.
The appropriate insurance coverage can depend on the type of equipment, where it is located, how it is used, and how the policy is written.
4. Theft From Vehicles
Contractors frequently transport tools, equipment, and materials between jobsites.
Example: An employee leaves a company vehicle overnight and discovers the next morning that several expensive tools have been stolen.
Contractors should understand how their different insurance policies address business property while it is being transported, stored, or used away from the primary business location.
5. Theft Can Create More Than a Property Loss
The financial impact of theft isn’t always limited to the value of the stolen property.
A contractor may also face project delays, equipment rental costs, employee downtime, replacement-material expenses, or other unexpected costs.
That makes it important to evaluate property exposures as part of the contractor’s overall insurance program.
Insurance Coverages to Consider
Depending on the contractor’s operations, the insurance program may include some of the following:
● Inland Marine
● Contractors Equipment
● Commercial Property
● Commercial Auto
● Builders Risk
● General Liability
● Umbrella or Excess Liability
Coverage can vary significantly depending on the type of property, where it is located, and how it is being used. Contractors should not assume that a standard commercial property policy automatically covers everything used on a construction site.
Protecting Your General Contracting & Construction Business
Security measures such as locked storage, cameras, lighting, GPS tracking, inventory controls, and secure jobsite procedures can help reduce the likelihood of theft.
Insurance provides another layer of protection when those precautions aren’t enough.
At CIB National Insurance & Consulting, we help general contractors and construction companies evaluate their tools, equipment, materials, and other property exposures as part of a broader insurance program.
If you’re a general contractor or construction company in Colorado or any other state and want to review your current coverage for tools, equipment, or construction materials, contact our team.
Coverage varies by policy, carrier, and insured operations. This article is provided for general informational purposes only and does not constitute insurance, legal, or professional advice or guarantee coverage for any specific claim or circumstance.