Restoration Insurance: Is Permanently Attached Equipment Covered By Auto Insurance?
Many restoration contractor clients have equipment attached to their vehicles, like welding tanks, toolboxes, and generators. We are often asked whether or not an auto insurance policy provides coverage for those pieces of equipment for claims involving damage to the vehicle or theft.
A standard business auto policy covers loss to a covered vehicle or equipment. A business auto policy doesn’t define “equipment” within the policy itself. However, by looking within the procedure under the definition of “mobile equipment,” it says that vehicles with the following types of permanently attached equipment are not “mobile equipment” but will be considered part of the auto: air compressors, pumps, generators, including spraying, welding, building cleaning, geophysical exploration, lighting or healthy servicing equipment.
The standard business auto policy also doesn’t specify that the equipment must be part of the original vehicle. So pieces of equipment that have been added to the car after should still have coverage for those pieces of equipment.
Essential Items to Note:
All that being said, there are two essential items for restoration contractors to keep in mind with permanently attached equipment:
1. We recommend covering large items, such as permanently mounted extractors, under an Inland Marine policy. An Inland Marine policy will allow you to specifically schedule the equipment on your policy and avoid any potential coverage issues down the road.
2. Your auto policy does not cover Equipment, such as air movers, dehumidifiers, hoses, wands, and cleaning supplies. Any equipment that is not permanently attached to it should be covered under a property or inland marine insurance policy.
Please remember that every policy is different and that you should refer to your specific policy, its endorsements, and exclusions to ensure you have coverage for the scenarios above.