How to Protect Your Contracting or Construction Business from Equipment Theft: What You Need to Do and How We Can Help You

Building and Construction work is an expensive business. From labor costs, the fluctuating prices of building materials, and more, contractors must consider many things when evaluating their expenses. One of the most costly yet most important parts of the budget lies in the equipment and machinery a construction company requires.

In order to efficiently and successfully complete projects, it is critically important to have the right type and quantity of equipment available, which means that medium and larger contractors have a lot of money invested in their machinery. Unfortunately, this also means that contractors face an inherent problem: equipment theft. The most popular theft targets are:

• Generators/air compressors/welders
• Skid steers
• Loaders (backhoe, skip, wheel and track)
• Lifts (Fork and Scissors)
• Light Utility Work Trucks and trailers

There are numerous reasons why construction equipment theft is so prevalent.

1. Since equipment theft is very profitable, professional theft rings are common. Naturally, a large number of thieves with a high level of proficiency increase the volume of thefts.
2. Unlike cars, trucks, SUVs, and vans, there is no comparable level of registration or title documentation for construction equipment.
3. There is no standard for placing unique identification numbers on such equipment. The poor ability to track ownership makes the stolen equipment easy to sell. This is a prominent reason that stolen equipment is not usually recovered.
4. In order to make equipment easy to use, different equipment manufacturers use a similar key entry system, so a master key can be acquired and used by thieves.
5. Most large construction projects are outdoors and at various sites; equipment is often stored without special security or locks.
6. Construction sites are usually unoccupied and unsupervised on weekends, so thefts may go unreported for long periods of time.
7. Equipment components are highly standardized, so equipment is vulnerable for theft for purposes of chopping and re-selling the parts.

What can you do about it?

There are ways to help minimize losses due to equipment theft. One method is to register your construction equipment. Registered equipment should be conspicuously marked with the registration information. Engine, serial numbers, and transmission numbers are all suitable for use with an equipment registry. Other theft deterrents are mechanical security devices (such as tire clamps or boots), electric lockdown devices, and/or methods to track equipment, such as LoJack or GPS systems, deployed at remote job sites. These trackers work on stolen equipment as well.

Bright lighting and security cameras around equipment storage areas are another good way to deter equipment theft. Likewise, the use of fencing makes it more difficult to get access to equipment. It is also helpful to weld company name and other information onto otherwise unmarked equipment (such as buckets, skids, booms, frames, cranes, etc.).

As an incentive to promote anti-theft efforts, some insurers award companies that use various security measures by applying premium discounts, reimbursing vehicle registration fees, or waiving deductibles for stolen equipment. However, if your equipment does end up being stolen, it is best to report theft losses quickly.

The insurance professionals at Williams Insurance are just the people to contact if you need to discuss this very important issue. If you’re interested in learning more about the coverage you need for your construction or contracting business, contant us today!