1. Forms
2. IH
3. IH-00-68

What the Form Is

The IH 00 68 Contractors Equipment Coverage Form is an Insurance Services Office (ISO) inland marine form designed to provide coverage for direct physical loss or damage to a contractor's equipment. This includes mobile machinery, tools, and equipment used in their operations. The form specifies what property is covered, the causes of loss insured against, applicable exclusions, limits of insurance, deductibles, and other conditions. Coverage applies to property at jobsites, at unnamed locations, and while in transit.

Classes of Business It Applies To

This form is crucial for a wide range of businesses that own, lease, or are responsible for mobile equipment. Examples include:

• Construction Contractors: General contractors, heavy construction, excavation, road work, etc., using equipment like bulldozers, cranes, excavators, pavers, and graders.
• Landscaping Contractors: Businesses using tractors, mowers, chippers, and other landscaping machinery.
• Artisan Contractors: Plumbers, electricians, HVAC installers who may have specialized mobile equipment and tools.
• Municipalities and Public Works Departments: For equipment used in road maintenance, sanitation, and other public services.
• Any business utilizing mobile equipment: This can extend to agricultural operations (though specialized farm equipment forms also exist), mining operations, and logging businesses for their mobile machinery.

The form can cover not only equipment owned by the insured but also equipment of others in their care, custody, or control, such as leased or rented machinery.

Special Considerations

• Policy Construction: The IH 00 68 is not a standalone policy. It typically forms part of a commercial inland marine policy and must be used in conjunction with other forms, including Common Policy Declarations (IL DS 00), Common Policy Conditions (IL 00 17), Commercial Inland Marine Declarations (CM DS 02), Commercial Inland Marine Conditions (CM 00 01), and a specific Contractors Equipment Declarations page (IH DS 68 or IH DS 59 for blanket coverage only).
• Valuation: Equipment can be valued at Actual Cash Value (ACV) or Replacement Cost (RCV). RCV is often available for newer equipment (e.g., not more than 5 or 10 years old, as specified in the declarations) and may require an endorsement like IH 99 07.
• Scheduled vs. Blanket Coverage: Equipment can be specifically scheduled with individual limits, or smaller miscellaneous tools and equipment can be covered on a blanket basis up to a certain sub-limit.
• Reporting Forms: For insureds with fluctuating equipment values, coverage can be written on a reporting basis using an endorsement like IH 99 08, requiring the insured to report values periodically.
• Additional Coverages: The form includes several additional coverages, such as Debris Removal, Pollutant Clean Up and Removal, and coverage for Newly Acquired Property (typically for a limited time and up to a certain value). It's important to note that some additional coverages are within the limit of insurance, while others may provide an additional limit.
• Optional Coverages: Endorsements can add coverage for specific exposures, such as Equipment Leased or Rented From Others, or Equipment Leased or Rented To Others.
• Exclusions: Common exclusions include wear and tear, mechanical breakdown (unless it results from a covered cause of loss), damage from overloading, and theft by an employee or someone entrusted with the property (this may vary by edition or specific endorsements).

Key Information for Agents and Underwriters

• Accurate Declarations: Ensure all equipment to be covered is accurately described on the declarations, including make, model, serial number, and value, especially for scheduled items. Clearly define what constitutes "Covered Property."
• Risk Assessment: Evaluate the type of equipment, its age and condition, how and where it's used (e.g., rough terrain, urban environments), security measures at jobsites and during transit, and the insured's maintenance practices.
• Valuation Method: Discuss ACV vs. RCV with the insured to ensure they understand how losses will be settled and select the appropriate option.
• Coinsurance: A coinsurance clause may apply, penalizing the insured if the equipment is underinsured. Ensure limits accurately reflect the equipment's value.
• Deductibles: Deductibles can be a flat dollar amount or a percentage of the loss or value, particularly for high-value items like cranes.
• Coverage Gaps: Identify potential gaps, such as coverage for boom collapse, overload, or specific perils that might require specialized endorsements or a broader causes of loss form. Review exclusions carefully.
• Endorsements: Utilize appropriate endorsements to tailor coverage, such as IH 99 07 for Replacement Cost or IH 99 08 for a Value Reporting Form. Consider endorsements for specific risks like waterborne equipment if applicable.
• Loss History: Review the insured's loss history to identify patterns or recurring issues that may impact underwriting and pricing.