Adding Large Equipment to Your Insurance Policy
Written by Ryan Watry
Everything is getting more expensive these days. This is true not only at the grocery store and gas pump but as the cost of equipment is also on the rise. Due to the rise in cost in these pieces of equipment, insurance companies are starting to require more information when adding them to your policy. Here is a quick guide to make sure that new equipment is added to your insurance policy without a problem.
1. Give Lead Time
Just like when you are purchasing a home or new vehicle, odds are you’ve done research and shopped around before buying the new equipment. When you start looking for that new lift or chipper or whatever, it is a good idea to reach out to your insurance agent to let them know you are shopping around and that way if they need underwriting approval to add it your policy, they can start the conversation with the underwriter.
2. Information required.
Besides the standard information of year, make, model, serial number and value, the underwriter will potentially ask for more information. This may include information on the equipment itself or on the people operating the equipment. Sending over the spec sheets or pictures of the equipment gives the underwriter a better understanding of what that equipment is and what it does. The underwriter may also ask about who is operating the item. Typically, they want to know what experience that person has and what/if any training they’ve had. Finally describing what jobs this item will be used on gives the underwriter a better understanding of what the equipment is needed for and how it will be used.
3. Loan Information
Odds are when you are purchasing this equipment you are taking a loan on it. It is important to provide your agent with the name and address of the lending company so they can show proof of insurance to that lender. If the lending company does not get this information, they will apply their own insurance and charge you for that. Nobody wants to double on insurance so to avoid giving your agent the lending information is crucial.
Buying a new piece of equipment can be exciting and potentially stressful time. Hopefully the tips we just gave you can help take away some of the stress when buying and insuring your new large piece of equipment.
If you are interested in having a conversation, or learning more, about how the Arborisk Thrive program and Consultants can help you strategically review and advance your company, please check out our Thrive website at: https://arboriskinsurance.com/arborisks-thrive/