Inland Marine and Equipment Insurance for Contractors

Commercial property insurance covers business personal property at a fixed location listed on the policy. Inland marine insurance is specifically designed for property that moves between locations, which is the reality for construction equipment. If your excavator is damaged at a jobsite that is not your listed business premises, a commercial property policy may deny the claim. An inland marine contractors equipment floater covers that same excavator at any jobsite, in transit, or at a temporary storage location. ALKEME recommends inland marine coverage for all mobile construction assets.

Standard inland marine policies cover physical damage from external causes such as collision, overturn, fire, theft, and vandalism, but they typically exclude mechanical breakdown and electrical failure. Equipment breakdown coverage, sometimes called boiler and machinery insurance, can be added to cover these exposures. For contractors who depend on cranes, generators, and HVAC installation equipment, mechanical breakdown coverage prevents costly out-of-pocket repair expenses. ALKEME can add equipment breakdown endorsements to your inland marine program or place a separate policy depending on which approach provides better terms.

ALKEME recommends scheduling equipment at its current replacement cost value, which is the amount it would take to purchase a comparable new item. For older equipment that has been fully depreciated on your books but is still in active use, the replacement cost value ensures a full recovery if the item is stolen or destroyed. We help clients conduct annual equipment schedule reviews to add new purchases, remove disposed items, and update values so the schedule accurately reflects your current fleet.

Yes. A tools floater within your inland marine program covers hand tools, power tools, and small equipment on a blanket basis. Coverage typically applies with a per-item limit and an aggregate limit, and items do not need to be individually scheduled. Mysterious disappearance coverage, which pays for tools that go missing without evidence of a specific theft event, is available on many policies and is valuable for construction firms where tool loss is a regular occurrence. ALKEME ensures your tools floater limits are calibrated to your actual tool inventory.