Simply Explaining Insurance #118 - Scheduled Equipment

If you own a business and your business requires you to have a lot of equipment, it’s important to make sure it is covered properly on your insurance policy.

I had a client tell me a story recently. He told me he was with the same insurance agent for 15 years before he filed his first claim. He had some equipment stolen from a trailer and he filed a claim on his general liability policy for his company.

There were 4 pieces of equipment stolen and they were all worth $2500 apiece. The policy covered only up to $2000 per piece. My client was understandably upset that he had been covered wrong for the past 15 years and that conversation about proper coverage had never taken place.

There are two places on a commercial policy you can cover your stuff. One is called “Contents” or “Business personal property”. This coverage is for everything in your space or in the address listed on your policy.

If you are a retail location or a restaurant or an office space, this is for everything in your space. Desks, chairs, computers, stock, food, supplies, etc.

If you take things out in the field, there is a different line you need these items to be on. There is another coverage called “tools and equipment” that will cover everything outside of your space.

This is for artisan contractors who work in the field. For example, plumbers, painters, electricians, lawn care and more. There is a higher risk to these being stolen and it may be slightly more expensive of a coverage.

There is one caveot to this coverage. Many policies have a limit, to how much will be covered PER ITEM. The limit I am familiar with is $2000. If you have any piece of equipment that is worth more than $2000, it most likely needs to be scheduled. Not unlike an engagement ring on a homeowners policy.

Check with your agent to make sure your stuff is covered properly!