Does your firm use heavy equipment like tractors or loaders? If it does, you may need to take extra steps to protect your machines from theft. According to the National Insurance Crime Bureau (NICB) thefts of heavy equipment are on the rise. In 2013 equipment thefts were 5% higher than in the previous year.

The NICB has identified five states in the U.S. that ranked highest in 2013 based on the number of equipment thefts.


They are (in descending order) Texas, North Carolina, Florida, California, and South Carolina. Why have more equipment thefts occurred in these states than in others? One reason may the relatively high rate of construction activity these states are experiencing. Another reason may be their location along a coast. Access to a port facilitates the disposition of stolen equipment by thieves. 

Why Heavy Equipment is Stolen

There are a number of reasons why heavy equipment is subject to theft. First, the equipment is valuable. A large piece of heavy machinery may cost well over $100,000. Secondly, equipment is often left at job sites for extended periods of time. Thieves have multiple opportunities to enter sites and take valuable items.

A third reason for the high theft rate of heavy equipment is poor security. Many equipment owners fail to lock or otherwise secure their property. Job sites are often unattended during off hours and at night. Fourthly, thieves have little fear of being caught.

Few are apprehended and prosecuted. Finally, stolen equipment is difficult to trace since thieves often remove serial or product identification numbers. According to the NICB only 21% of the equipment stolen in 2013 was recovered.

Type of Equipment Targeted

Thieves generally favor smaller equipment over big, bulky machines. Smaller items are easier to transport and sell. The NICB's report showed that the following types of equipment were most targeted by thieves in 2013:

1. Mowing machines These include riding mowers and tractor mowers.
2. Skid-steer loaders Loaders with wheels were the most prone to theft.
3. Tractors These include tractors that run on wheels or tracks.

Theft Prevention

There are a number of steps you can take to protect your property from theft. Here are some of them:

• Keep a log Maintain a detailed log of all equipment, including a photo of each item. Record the serial or product identification number for each piece of equipment. Store this log at a secure location (not a a job site).
• Engraving Stamp or engrave the serial or product identification number in multiple places on each piece of equipment.
• Power or fuel shut-off To prevent equipment from being started up after hours, install a hidden system that shuts off power or fuel.
• Immobilize equipment Use chains, wheel locks, steering wheel clubs or other devices to immobilize equipment. Each type of equipment may require a different type of locking device. You can make some equipment inoperable by removing batteries, fuses or wires.
• Placement Protect small or light items that are easy to steal by placing them at the center of a circle. Surround them with heavy items.
• Fencing and Lighting Surround your work site with fencing and keep the site well lit at night.

Insurance Coverage

Machinery and equipment are covered as Business Personal Property under a typical commercial property policy. However, such items are covered only while located at, or within a short distance of, a premises described in the declarations. Thus, heavy equipment that is used off-site requires specialized coverage.

Construction and other types of mobile equipment are normally insured under a type of property policy called a contractors equipment floater (or simply equipment floater). The term floater means a policy that covers movable property (property that is transported from one place to another).

Most equipment floaters cover damage to equipment caused by any peril that is not specifically excluded. Theft (other than employee theft or theft by you) is normally a covered peril.