Introduction to Commercial Inland Marine-Introduction to Commercial Inland Marine: Contractors Equipment

Video Transcription

Video Summary

The IMUA held a comprehensive virtual class on Introduction to Inland Marine Contractors' Equipment led by Tony Falcone, President of Intact Insurance Specialty Solutions. Intended primarily for those new to underwriting contractors' equipment, the session emphasized the significance of contractors' equipment insurance, one of the three largest inland marine classes alongside builder's risk and motor truck cargo.<br /><br />Tony detailed the broad spectrum of covered equipment, from small tools to large machinery such as cranes, dredges, and drilling rigs. Key coverage aspects include protection during transit, storage, and operation onsite. Specific focus was given to policy construction, highlighting common policy sections: definitions, coverage grants and exclusions, additional coverages, and conditions. He stressed understanding the definition of contractors’ equipment, noting exclusions such as automobiles, aircraft, and certain watercraft unless endorsements apply.<br /><br />The class covered critical endorsements like waterborne coverage, business income, lease-rented equipment, and preservation of property, emphasizing their roles in addressing exposures like flood, transit, or equipment rented from third parties. Debris removal coverage was explained with illustrative math showing that the maximum payable depends on a percentage of the loss plus any additional limit stated.<br /><br />Underwriting essentials were discussed: knowing the contractor’s operations, requiring detailed equipment schedules, and considering loss history. Valuation is typically on an actual cash value (ACV) basis, with replacement cost available if coordinated properly. Blanket policies were explained as alternatives to scheduled policies, allowing flexibility with mid-term acquisitions but requiring annual reporting and suspension of coinsurance.<br /><br />Tony underscored common risks such as theft—particularly prevalent in Texas—and fire, recommending inquiry into risk controls and maintenance practices. The class also answered participant questions on coverage nuances, emphasizing the importance of clear policy terms, fast underwriting decisions, and proper rating practices, notably for lease-rented equipment which is rated based on rental expenses rather than policy limits.<br /><br />Overall, the session provided a practical and detailed overview of inland marine contractors' equipment insurance, encouraging active engagement, study of policy forms, and consultation with experts to effectively manage this complex and critical insurance line.

Asset Caption

Date of Publication: December 2, 2025
Duration: 2 hours 17 minutes

Instructed by: Tony Falcone, President, Intact Inland Marine

Meta Tag

Module Introduction to Commercial Inland Marine

Keywords

debris removal coverage

additional acquired equipment coverage

non-owned equipment coverage

contractor's equipment policy

exclusions for automobiles

exclusions for aircraft

flexibility in coverage

split deductibles

endorsements

wind event damage

underwriting considerations

rating considerations

theft prevention strategies

fire prevention strategies

co-insurance

Inland Marine Insurance

Contractors' Equipment

Eileen Monreale

Michelle Sibyl

equipment insurance

premium volume

excavation

construction

recycling

risk evaluation

underwriting

theft prevention

policy construction

valuation methods

risk management

Tony Falcone

Intact Insurance Specialty Solutions

Contractors' Equipment Insurance

Coverage Grants

Exclusions

Waterborne Coverage

Business Income Coverage

Lease-Rented Equipment

Actual Cash Value (ACV)