Build a usable equipment schedule
Record serial numbers, year, make, model, attachments, values and ownership or lease interests. Include spare components and specialized tools where relevant. Identify equipment operating underground, at remote locations or on customer premises so location and use restrictions can be addressed explicitly.
Understand valuation and causes of loss
Compare replacement cost, actual cash value and any agreed-value terms with the policy’s settlement conditions. Ask about breakdown, wear, flood, theft, underground restrictions and recovery expense. A replacement cost figure does not by itself establish that every cause of damage is covered.
Follow equipment between jobs
Review transit, loading, unloading, assembly, testing and rented equipment provisions. Identify lender or lessor requirements and responsibility for substitute equipment. Lost revenue and the customer’s production interruption need their own analysis; they should not be inferred from a physical damage limit.
Illustrative review scenario
A contractor replaces a machine with a newer model and keeps several attachments from the old unit. The invoice and equipment schedule show different values and descriptions. Reconcile the machine, attachments, financing interest and reporting requirements promptly. If a loss occurs, the settlement analysis may depend on both the coverage provisions and evidence of the property actually insured. Are expensive attachments separately listed, included in the machine value or subject to another provision? Resolve the treatment of interchangeable components and maintain records when they move between machines.
Watch & learn
Mining Equipment Insurance: What Mining Companies Should Know
Loading this video connects to YouTube. Playback is optional.
Watch on YouTube ↗