Owned vs Leased Equipment Coverage
Tower contractors rely on cranes, gin poles, cable pullers, and specialized rigging worth hundreds of thousands of dollars. The coverage structure differs fundamentally depending on whether equipment is owned outright or leased from a rental house.
Owned Equipment (Inland Marine / Contractors Equipment)
Advantages
- +Scheduled coverage provides agreed-value or replacement-cost protection for owned assets
- +No coverage disputes with lessors about responsible party after a loss
- +Policy can include transit, theft, and equipment breakdown perils in a single form
- +Owned equipment builds balance sheet value and can be depreciated for tax purposes
Disadvantages
- -Significant capital outlay to purchase specialized tower equipment
- -Responsible for maintenance, inspection, and certification costs regardless of utilization
- -Equipment sitting idle between projects still requires premium payment for physical damage coverage
- -Older equipment may be valued below replacement cost, creating coinsurance issues
Leased Equipment (Rental Coverage)
Advantages
- +No large capital expenditure required to access specialized cranes or rigging
- +Lessor typically maintains, inspects, and certifies the equipment
- +Coverage can be purchased per-rental or through a blanket leased equipment endorsement
- +Scales up and down with project demand without carrying idle asset risk
Disadvantages
- -Rental agreements impose liability for damage, theft, and loss on the lessee
- -CGL policies exclude damage to property in the insured's care, custody, or control, requiring separate inland marine or rental equipment coverage
- -Rental house damage waivers are expensive and may not cover full replacement value
- -Loss of use charges from the lessor during repair periods can exceed the physical damage cost
Bottom line for tower contractors
Most established tower contractors own core equipment (gin poles, rigging hardware, vehicles) and lease situational heavy equipment (large cranes, specialized lifts) on a project basis. The insurance program should include a scheduled inland marine policy for owned assets and a blanket leased/rented equipment endorsement for third-party equipment. Verify that each rental agreement's liability terms align with your coverage before signing.