Things have become quite expensive and losing something important and of high cost can put you in a big problem. This is why we are often advised by our financial advisors to insure our things before it gets too late. When you insure your important belongings the insurance company will pay you the coverage amount and you can use that money to buy a new one. We have the fear in our mind that our stuffs might get stolen or if it meets with an accident you will no longer be able to use it. This is perhaps the primary reason why you insure your stuffs.
For the same reason you also insure your home, your vehicle and there are some people who also insure their body parts because they consider it as the tool to earn money. Similarly in the construction business the owner of the business must insure his belongings too and the most important part of his belongings is the heavy equipment. Heavy equipment is expensive and also goes through arduous as well as perilous task which increases the incidents of minor or major accidents happening on the site. Being such an expensive item, if it suffers a major breakdown or needs to be replaced or gets stolen, the construction company will find it hard to get a new one without getting money from the insurance company. Apparently, this will also have a drastic impact on the progress of his project. This is why it is so important to get your heavy equipment insured with a good insurance company.
Ideally when you buy heavy equipment from a dealer or directly from the company, you are advised to insure the machine with one of the insurance company with whom they have their tie-ups. You have the option to either go with the insurance company that they have advised you or go for an independent company. So if you tell them of your choice of going with an independent insurance company it becomes your responsibility to ensure that you insure the machine with the insurance company of your choice.
Some insurance companies charge high premiums:-
Different insurance companies charge different amount of premiums. Some may be high and some may fit your budget. But the ones that charge high from you may also offer you few other services that a company with lower premium may not offer. So before you take an insurance cover for your heavy equipment, it is imperative that you read their policy related documents and understand the intricacies well. This will allow you to take the best call for your machine. There are some companies who charges nominal premiums but offer excellent coverage. So be wise and do good research before you pick up from the lot.
Go for companies that offer coverage on replacement cost:-
When you insure your heavy equipment on replacement cost basis, the insurance company will provide you the money without discounting the depreciation. They will give the amount on the basis of the coverage you have taken and not on actual cost basis. It makes more sense to go with a policy that has replacement cost and not actual cost.