The facts
A construction company was contracted to carry out a demolition project in California. To ensure the successful completion of the project, they had made substantial investments in state-of-the-art heavy construction equipment.
Towards the end of the project, a group of thieves planned and executed a theft operation. Having observed the site for over a week, they carefully studied the security measures in place. Overnight, the thieves broke into the site and utilized a specialist trailer to load a pair of skid steers before making a swift exit.
The following morning, the demolition crew arrived on site to see the skid steers missing. They immediately contacted the local authorities. Without the skid steers, they were unable to carry out essential tasks, leading to a substantial delay in the project's overall completion.
The result
The claim was settled for just over $200,000, with the construction company responsible for a $5,000 deductible. The contractors' equipment policy effectively covered the interests of the construction company, ensuring full financial protection.
Risk factors
Risk factor #1
To effectively mitigate the risk of theft, contractors should prioritize the implementation of robust risk mitigation strategies. This includes establishing secure storage facilities, deploying comprehensive site security measures, utilizing equipment tracking systems and implementing effective inventory management practices. However, one of the most vital aspects of theft prevention is providing thorough employee training. By educating and empowering employees to recognize and report suspicious activities, contractors can create a strong line of defense against theft.
Risk factor #2
Despite the best preventative measures, equipment theft can still occur. Therefore, it is crucial to secure a comprehensive contractors equipment insurance policy. This insurance coverage helps minimize the financial impact of theft and facilitates the replacement or recovery process.
*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.
