Key Takeaways
- General liability insurance protects against third-party claims for injuries or damage caused by rented equipment.
- Property insurance covers owned assets like machinery, vehicles and buildings from losses.
- Workers’ compensation provides wage replacement and medical benefits for injured employees.
- Commercial auto insurance protects from liability risks involving equipment transportation.
- Equipment insurance guards the financial health of the business if machinery is damaged or stolen.
Introduction
Businesses in the construction, mining, and forestry machinery and equipment rental and leasing industry rely heavily on vehicles and machinery to operate. Due to the high-risk nature of these assets and operations, there are several critical business insurance policies needed to protect the financial health and stability of the business.
General Liability Insurance
General liability insurance provides essential protection for businesses in the construction, mining, and forestry machinery and equipment rental and leasing industry. It helps protect them from costly lawsuits and claims that could arise from accidents involving the heavy equipment they rent and lease. General liability insurance also helps protect businesses in this industry from financial loss arising from common liability claims and situations they may encounter such as bodily injury, property damage, personal injury and more that could result from operating heavy machinery. It also protects their assets, savings and ability to stay in business if they are sued.
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Based on industry data, businesses in the construction, mining, and forestry machinery and equipment rental and leasing industry typically pay around $2,000-$3,000 annually for general liability insurance. The pricing is dependent on factors like number of employees, annual revenue, types of equipment rented, claims history, and risk management practices. For a mid-sized business in this industry with 20 employees and $5M in annual revenue, an estimated annual premium would be around $2,500.
Estimated Pricing: $2,500
Property Insurance
Property insurance provides financial protection for businesses in the construction, mining, and forestry machinery and equipment rental and leasing industry by covering costs to repair or replace owned assets like heavy machinery if damaged or stolen. It also covers liability and legal costs if rented equipment causes accidents. Coverage is also provided when equipment is transported between locations or being serviced, and for damage from natural disasters. Pricing is estimated at $4.50 per $100 of insured equipment value based on industry loss data.
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Based on the average risks and claims in this industry, the estimated average annual property insurance pricing for businesses in the Construction, Mining, and Forestry Machinery and Equipment Rental and Leasing industry with NAICS code 532412 is $4.50 per $100 of insured equipment value. This pricing was derived from industry loss data over the past 10 years and takes into consideration factors such as the types of equipment rented/leased, average equipment values, loss histories, safety records, security measures, etc.
Estimated Pricing: $4.50 per $100 of insured value
Workers’ Compensation Insurance
Workers’ compensation insurance provides critical benefits and protections for both employees and employers in the construction, mining, and forestry machinery and equipment rental and leasing industry. It covers employees’ medical expenses and lost wages if injured on the job, while protecting businesses from expensive liability claims.
The top benefits of workers’ compensation insurance for this industry include providing wage replacement and medical benefits for injured employees, covering legal liability for work-related injuries, fulfilling state law requirements, preventing costly legal battles, attracting quality job applicants, and reducing absenteeism and turnover.
The top use cases for this industry involve protecting employees from injuries sustained while operating heavy machinery, covering medical and lost wage costs for such injuries, and meeting state legal requirements for businesses.
The estimated annual cost of workers’ compensation insurance for businesses in this industry with the NAICS code 532412 is $3.50 per $100 of payroll based on risk factors and industry data.
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Based on industry data and risk factors for NAICS code 532412, the average estimated pricing for workers’ compensation insurance is calculated based on payroll and loss history. Considering the machinery rental nature of the business and risks involved, the estimated annual price is $3.50 per $100 of payroll.
Estimated Pricing: $3.50/100 of payroll
Commercial Automobile Insurance
Commercial automobile insurance provides critical protection for construction, mining, and forestry equipment rental businesses. It covers liability risks from rented equipment and transportation of assets between locations. Estimated pricing for a business in this industry is around $12,000 annually based on vehicle types, mileage, driver history and coverage limits. The top benefits include liability protection, medical payments, damage reimbursement and legal defense costs. Key use cases involve transportation of rental equipment, customer use of rentals, and non-owned vehicle exposure.
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Based on the typical risks and exposures for businesses in the construction, mining, and forestry machinery and equipment rental and leasing industry, the average annual commercial automobile insurance pricing is estimated to be around $12,000 per year. This takes into account factors such as the type of vehicles owned (e.g. trucks, heavy machinery, etc.), annual mileage, drivers’ history, and coverage limits.
Estimated Pricing: $12,000
Equipment Insurance
Equipment insurance is a critical risk management tool for businesses in the construction, mining, and forestry machinery and equipment rental industry. It protects their valuable assets from accidental loss or damage and ensures financial stability if repair or replacement is needed. Some key benefits of equipment insurance include protecting against financial loss from accidental damage or theft of equipment, covering repair or replacement costs to get equipment back into working condition, and providing liability coverage to protect against lawsuits if equipment causes harm to others. Typical use cases for equipment insurance involve insuring owned equipment, providing coverage for rented equipment, and insuring equipment during transport between job sites. Estimated average annual pricing for basic equipment insurance is around $1.50 per $100 of insured equipment value based on typical industry values and losses.
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Based on industry research and analysis of typical equipment values and loss histories for businesses in the construction, mining, and forestry machinery and equipment rental and leasing industry, the estimated average annual pricing for basic equipment insurance would be around $1.50 per $100 of insured equipment value. This pricing was derived by taking the typical average value of owned equipment for businesses in this industry, which is around $500,000, and using an industry standard equipment insurance rate of $1.50 per $100 of value.
Estimated Pricing: $7,500
Commercial Umbrella Insurance
Commercial umbrella insurance provides important liability protection for construction, mining, and forestry machinery and equipment rental businesses. As the rental of heavy equipment introduces risks of accidents and injuries, umbrella coverage acts as crucial excess protection for these risks. Umbrella insurance also covers gaps or deficiencies that may exist within underlying commercial general liability, auto liability, and other policies for these high-risk businesses. It protects the business from large claims and litigation costs that exceed their standard insurance limits.
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Based on typical underwriting practices, businesses in the NAICS Code: 532412 industry can expect to pay on average $2/per $1,000 of commercial umbrella insurance coverage. This pricing is derived from the industry’s higher than average risk profile due to operating heavy machinery and equipment. The minimum coverage amount offered is usually $1 million with increments of $1 million thereafter.
Estimated Pricing: $2/per $1,000 of coverage
Commercial Fleet Insurance
Commercial fleet insurance provides essential protection for construction, mining, and forestry equipment rental businesses. It covers costs from repairs, replacements, medical bills, and protects against lawsuits to help keep business running smoothly. Businesses in the construction, mining, and forestry machinery and equipment rental industry rely on commercial fleets of heavy machinery. Fleet insurance provides critical coverage for the risks associated with operating and renting out this equipment. It protects the business from financial liability in the event of accidents or losses involving their rental equipment.
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Based on industry data, the estimated average annual price for commercial fleet insurance for businesses in the construction, mining, and forestry machinery and equipment rental and leasing industry is around $5,000-$10,000 per vehicle. The pricing is derived based on the type of vehicles and equipment in the fleet as well as risk factors like driver safety records, annual mileage, location of the business, and claims/accident history.
Estimated Pricing: $5,000-$10,000
Equipment Breakdown Insurance
Equipment breakdown insurance provides critical financial protection for businesses relying on machinery, vehicles, and other equipment. Unexpected equipment failures can be very costly to repair or replace and result in lost business during downtime. This type of insurance helps offset those risks and expenses.
For businesses in the construction, mining, and forestry machinery and equipment rental and leasing industry with NAICS code 532412, the estimated average annual pricing for equipment breakdown insurance would be around $12,000, derived from the industry’s average insured equipment value of $2 million and an industry standard rate of 0.6% of total insured values.
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Based on typical industry factors such as average equipment values, loss histories, and risk profiles, the estimated average annual pricing for equipment breakdown insurance for businesses in the construction, mining, and forestry machinery and equipment rental and leasing industry with NAICS code 532412 would be around $12,000. This pricing was derived by taking the industry’s average insured equipment value of $2 million and applying an industry standard rate of 0.6% of total insured values.
Estimated Pricing: $12,000
Conclusion
Proper insurance tailored to the risks of this industry is essential to help cover costs from unexpected losses and limit liability exposure. The right coverage can also provide peace of mind to continue business operations smoothly despite unforeseen events involving equipment, vehicles or employees.