7 Insurance Requirements for Heavy Equipment Repossession
Proper insurance coverage is critical when it comes to repossessing heavy equipment collateral such as trailers, dozers, trucks, and related vehicles in construction, farming, and transportation. As one of the leading nationwide equipment repossession companies, the suggested coverage and amounts are more than sufficient to cover any situation. In the case that a heavy equipment repossession goes wrong, you’ll be covered through our recommended insurance requirements. It’s important to also note that as a lender, you should be listed as an additional insured at all times.
Workers Compensation/Employer’s Liability
Employer’s liability insurance (EL) provides coverage for any work-related injury but also covers legal expenses. This insurance helps your company through a negligence lawsuit stemming from an injury (INSUREON). Should the repossession of your heavy equipment goes wrong and someone gets injured in the process, your employer’s liability insurance will come into effect. We recommend a minimum required amount of the following:
- Statutory
- Each Accident – $100,000
- Disease – $100,000
- Policy Limit – $500,000
Automobile Insurance Coverage
This recommended 3rd party liability coverage has two components. It covers any property damage as well as bodily injury from the use of company owned, hired, or non-owned vehicles (ALLSTATE). We recommend a minimum required amount of $1,000,000.
Drive Away Liability Insurance
This 3rd party liability coverage applies when “driving away” a repossessed vehicle or heavy equipment. It covers property damage and bodily injury. A lot of time, it’s easier on the agent to hop in and drive the heavy equipment machinery or vehicle unit than attempting it haul it to storage/auction (TRUCK INSURANCE QUOTES). This is why having drive away liability coverage is critical. We recommend a minimum required amount of $1,000,000.
Garage Keepers Coverage
This 1st party liability and primary liability coverage is for vehicles damaged in your agency’s care & control. It’s critical that your policy stipulates direct and primary coverage. Garage keepers insurance protects you in the case that vehicle damages occur as a result of fire, theft, extreme weather, vandalism, or other accidental damage to the vehicle (TRUSTED CHOICE). We suggest a minimum required amount of $350,000.
On Hook Insurance
In any repossession case, it’s important to have proper coverage while hauling away heavy equipment vehicles. This 1st party liability insurance covers damage to vehicles while being towed by your recovery agency. We recommend a minimum required amount of $100,000.
Employee Dishonesty Insurance
Employee dishonesty coverage is a key insurance coverage in any commercial policy (IRMI). This 1st party liability covers property or money in your care & custody. We recommend a minimum required amount of $500,000.
General Liability
Your general liability insurance must stipulate that coverage also applies to wrongful repossessions. This 3rd party liability covers property damage & bodily injury from your business operations. We suggest a minimum required amount of $1,000,000 per occurrence and $2,000,000 aggregate.
