1 CONTRACTORS EQUIPMENT Presented by: Gina Hilgendorf – Hanover Marine April 30, 2009

2 What is Contractors Equipment? CEQ is owned, leased, rented, or borrowed equipment that your insured has on their jobsite. CEQ can be large or small CEQ is also covered: –In transit to/from a jobsite –While at the Insured’s location –While leased/rented to another party (via endorsement)

3 Types of Equipment Earth Moving Equipment –Excavator –Loaders –Roller/Compactor –Trencher –Dump Trucks –Backhoe –Bulldozer

4 Types of Equipment Site Improvement and Materials Handling –Asphalt and Batch Plants –Pavers –Crushers –Forklifts –Mobile cranes –Tower –Truck –Crawler

5 Types of Equipment Miscellaneous Equipment –Generators –Welders –Hand tools –Compressors

6 CEQ: Key Coverages AAIS Forms: –General coverages Newly Acquired Equipment, Flood/Quake, Debris Removal, Pollutant Clean- up –Small tools and Employee Tools –Leased/rented to/from others Why are these important? Plus many miscellaneous endorsements including Waterborne Coverage, Employee Tools Coverage, and Trailers and Spare Parts Coverage.

7 General Info Needed Type of Work –Site clearing, HVAC, sewer, municipality, street and road, etc. # of years in business Loss experience Schedule of equipment –Include serial #’s –Any cranes? Are operators certified? Valuation –ACV or Replacement Cost Do they lease/rent from others? –How much are they spending annually? –With or w/o operators? –Long-term leasing? Do they lease/rent to others? –Rental agreement? –Require a certificate of insurance? Self-insuring CEQ –Advise them to check values on machinerytrader.com, etc.

8 Primary Exposures & Perils Fire – Small equipment in warehouse, poor maintenance program. Upset/Overturn – Excavators in gravel pits, uneven surfaces, crane footing not stable, uneven load lift. Theft – Unsecured jobsites, remote locations: Hanover is partnered with LoJack and National Equipment Register Damage during transport to/from jobsites. Flood – locations of yards, equipment below ground level in a gravel pit. Hanover has dedicated Marine Loss Control and Claims personnel countrywide who can help.

9 In Transit

10 Overturn

11 Vandalism

12 More Information Potential Customers –Street and road contractors –Manufacturers –Municipality –Warehousing Operations –Site clearing/land grading operation –Golf courses Key Questions to Ask Your Insured –Do you ever rent equipment? –Do you own your equipment? –Is your equipment operated over water? If your Insured is a builder or contractor, we can also provide Builder’s Risk coverage or an Installation Floater. Contact your MAU underwriter for more info.

13 Final Thoughts CEQ can be found on most any account Offering this coverage makes you more valuable to the customer by meeting all of their needs Post-webinar –National Equipment Register –LoJack –PowerPoint – QUESTIONS?