How to Get the Most Out of Your Auto Equipment Policy
If you’re looking to purchase a policy for your Auto Equipment, you should be aware of what your policy will cover. Many policies exclude coverage for vehicles that are not primarily used on your property. In some cases, you can purchase an additional policy to protect your business’s auto to preview Equipment. These policies typically cover the repairs a
nd replacement costs of mobile equipment. Here are some tips to help you get the most out of your Auto Equipment policy. Read on for more information!
Vehicles with permanently attached cranes, shovels, loaders, diggers, or drills are considered “mobile equipment”
Although it may not be easy to determine the type of equipment that your vehicle contains, you should understand the different types and the differences between them. Generally, vehicles are classified as mobile equipment if they have one or more permanently attached pieces of equipment, and the ability to move them around. Examples of mobile equipment include construction and resurfacing equipment, as well as road graders, scrapers, and steam rollers.
A vehicle with a permanently attached backhoe is considered mobile equipment. Although it is considered a piece of mobile equipment, a backhoe is not a vehicle for transporting persons or property. It is usually transported on a flatbed trailer, and may move across the road occasionally. This means that it is not subject to motor vehicle registration laws, compulsory insurance, and financial responsibility laws.
They are maintained for use solely on the premises you own or rent
If your auto is used on a property that is owned by a third party, you may need to ensure that you carry the proper coverage. This may require extra coverage or special provisions for vehicles that are used only on a specific premises. For example, if your business uses a tractor-trailer for hauling products from store to store, you need to carry the appropriate liability coverage on the vehicle.
Their maintenance is subject to policy exclusions
Exclusions are provisions within a policy that prevent coverage for a particular type of loss or damage. Typically, insurance companies have two sets of exclusions. One set pertains to the insurance policy’s coverage of property and the other is limited to the policy’s liability coverage. Other policies include exclusions for all types of coverage. A business auto policy, for example, may exclude coverage for accidents that occur outside of the defined “coverage territory.” This provision appears in the general Conditions section of the policy.