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Does Construction Insurance Cover Theft?

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You may have seen it in the news, it may have happened to you, or you may know someone it’s happened to; thefts on construction sites are a common source of loss of equipment, materials, and tools. Utility vehicles, skid steers, and towable generators make the top five most frequently stolen types of construction equipment, according to ConstructConnect.

If you weren’t able to prevent theft at your construction site, you may be filing police reports and renting temporary equipment to get through the job. You may be wondering if your insurance covers theft.

A Nashville contractor attorney goes over insurance coverage for stolen items in this article.

General Liability

Contractors commonly carry general liability insurance to protect them against third-party injuries, property damage, and damaging another worker’s expensive tools. Unfortunately, general liability insurance doesn’t normally cover lost or stolen tools and equipment.

Builder’s Risk

Tools and equipment on your jobsite may be covered under builder’s risk insurance. Most Builder’s risk policies are written on an “all perils basis” which means the policy covers the loss unless it’s explicitly excluded from the policy. That being said, the type of theft involved matters for policy coverage.

If the theft was perpetrated by an employee, it is unlikely to be covered because employee theft is normally excluded. However, if the theft is committed by someone other than an employee, it may be covered.

Additional Policies

If you added additional policies to your insurance coverage, you may be protected. Read over your policies to see if your policy specifically includes or excludes theft or loss of items. If you believe it should be covered and your policy denies your claim, it may be time to seek out legal representation.

Denial of Legitimate Insurance Claims

If you reported a legitimate theft claim to your insurance company and they denied coverage, you may need legal representation. Denying a legitimate claim can mean your insurance company is liable for a breach of contract. You may be entitled to additional compensation over what the claim would have paid out because of your rights as a policyholder. Your particular claim will be investigated and questioned, having a knowledgeable attorney on your side can help you get the compensation you deserve.

If you would like to speak with our Nashville contractor attorneys, please contact us today.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.