1

CONTRACTORS EQUIPMENT

Presented by:

Gina Hilgendorf – Hanover Marine

April 30, 2009

2

What is Contractors Equipment?

• CEQ is owned, leased, rented, or borrowed equipment that your insured has on their jobsite.

• CEQ can be large or small

• CEQ is also covered:

– In transit to/from a jobsite

– While at the Insured’s location

– While leased/rented to another party (via endorsement)

3

Types of Equipment

• Earth Moving Equipment

– Excavator

– Loaders

– Roller/Compactor

– Trencher

– Dump Trucks

– Backhoe

– Bulldozer

4

Types of Equipment

• Site Improvement and Materials Handling– Asphalt and Batch Plants– Pavers– Crushers– Forklifts– Mobile cranes

– Tower– Truck – Crawler

5

Types of Equipment

• Miscellaneous Equipment

– Generators

– Welders

– Hand tools

– Compressors

6

CEQ: Key Coverages

AAIS Forms:– General coverages

• Newly Acquired Equipment, Flood/Quake, Debris Removal, Pollutant Clean-up

– Small tools and Employee Tools– Leased/rented to/from others

Why are these important?

Plus many miscellaneous endorsements including Waterborne Coverage, Employee Tools Coverage, and Trailers and Spare

Parts Coverage.

7

General Info Needed

• Type of Work– Site clearing, HVAC, sewer,

municipality, street and road, etc.

• # of years in business• Loss experience• Schedule of equipment

– Include serial #’s– Any cranes? Are operators

certified?

• Valuation– ACV or Replacement Cost

• Do they lease/rent from others?– How much are they spending

annually? – With or w/o operators?– Long-term leasing?

• Do they lease/rent to others?– Rental agreement?– Require a certificate of insurance?

• Self-insuring CEQ– Advise them to check values on

machinerytrader.com, etc.

8

Primary Exposures & Perils

• Fire – Small equipment in warehouse, poor maintenance program.• Upset/Overturn – Excavators in gravel pits, uneven surfaces, crane

footing not stable, uneven load lift.• Theft – Unsecured jobsites, remote locations:

• Hanover is partnered with LoJack and National Equipment Register

• Damage during transport to/from jobsites.• Flood – locations of yards, equipment below ground level in a gravel pit.

Hanover has dedicated Marine Loss Control and Claims personnel countrywide who can

help.

9

In Transit

10

Overturn

11

Vandalism

12

More Information

Potential Customers

– Street and road contractors

– Manufacturers

– Municipality

– Warehousing Operations

– Site clearing/land grading operation

– Golf courses

Key Questions to Ask Your Insured

– Do you ever rent equipment?

– Do you own your equipment?

– Is your equipment operated over water?

If your Insured is a builder or contractor, we can also provide Builder’s Risk coverage or an Installation Floater. Contact your MAU

underwriter for more info.

13

Final Thoughts

• CEQ can be found on most any account• Offering this coverage makes you more valuable to the customer by

meeting all of their needs• Post-webinar email

– National Equipment Register– LoJack– PowerPoint– http://marineadvantage.hanover.com

QUESTIONS?