Which type of insurance coverage is recommended for individuals selling construction equipment and mobile equipment?

The recommended insurance coverage for individuals selling construction equipment and mobile equipment is the Equipment Dealers Coverage Form. This specialized insurance is designed to meet the unique needs of businesses that deal specifically with equipment sales, including construction machinery.

This coverage typically includes protection for the equipment while it is in the dealer’s inventory, as well as liability coverage if a product sold causes injury or damage. Additionally, it can provide protection for equipment that is in transit or being demonstrated. Given the nature of the equipment involved—often costly and experience-intensive—the Equipment Dealers Coverage Form is tailored to mitigate the risks associated with selling and leasing heavy machinery.

When considering other insurance types, general liability coverage provides broader liability protection but does not specifically cater to the nuances of equipment sales. A builder's risk policy primarily covers properties under construction, making it less relevant to a business selling equipment. A comprehensive commercial policy may offer a range of coverages, but it lacks the specialized features that are critical for entities focused on construction or mobile equipment sales. Thus, the Equipment Dealers Coverage Form stands out as the most appropriate option.