The Facts

Brandon, a contractor specializing in excavation work, owns a fleet of heavy equipment, including excavators, bulldozers, and loaders. He recently secured a new project in a neighboring city and needed to transport his equipment to the job site, which was approximately 100 miles away. Assuming his insurance policy would cover any damages during transit, Brandon proceeded with the transportation. 

During the transportation process, an unforeseen mechanical failure occurred in Brandon’s truck, causing his excavator to shift and collide with another piece of equipment on the trailer. As a result, the excavator sustained significant damage, including a damaged hydraulic system and structural issues.

The Result

Brandon immediately contacted his insurance provider to file a claim for the damages. However, he was informed that his insurance policy did not include coverage for damage that occurs during transit. His policy only provided coverage for equipment while it is in use on job sites or stored at designated locations. Since the damage occurred during transportation, Brandon’s claim was denied, leaving him responsible for the repair costs.
 

Risk factor #1

This scenario highlights the importance of not making assumptions about insurance coverage. Brandon's assumption that his policy would cover damages during transit proved to be incorrect, resulting in the denial of his claim and leaving him financially responsible for the repair costs.

Risk factor #2

Contractors should carefully review their insurance policies and fully understand the specific coverage provided. To avoid potential gaps in coverage and unexpected expenses, it is crucial for contractors to ensure that their equipment insurance policy includes coverage for equipment during transit, especially if they anticipate the need to transport equipment on occasion. By taking this proactive step, contractors can mitigate the risk of being left responsible for repair costs in similar situations.

_{*The claim scenario is strictly documented for illustrative purposes only and provides an example of what a policy could cover. It is intended to provide a general overview of the program described. Please remember only the insurance policy can give actual terms, coverage, amounts, conditions and exclusions. Program availability and coverage are subject to individual underwriting criteria.}