Insurance covering assets on a business’s yard.
Yard Coverage is a specific type of insurance that protects businesses’ assets located on their premises, particularly in outdoor areas such as yards, lots, and storage spaces.
Coverage may be included under broader property insurance or inland marine insurance policies.
This coverage is essential for businesses that own or operate industrial, construction, and manufacturing equipment that is frequently stored outside.
Yard Coverage addresses the inherent risks associated with leaving valuable assets exposed to the elements and potential theft.
While standard property insurance often covers assets within enclosed buildings, it may also include provisions for outdoor assets, depending on the policy.
This could include anything from construction machinery and vehicles to raw materials and work-in-progress items. Outdoor assets are generally more susceptible to risks such as weather-related damage, theft, and vandalism.
Companies operating in sectors like construction, landscaping, or freight often find this coverage essential, as a loss or damage to outdoor assets can lead to significant financial repercussions and project delays.
Examples
Here are a couple of scenarios illustrating the importance of Yard Coverage.
- A construction company leaves heavy machinery parked overnight on a job site. A severe storm causes damage to the equipment. Their Yard Coverage helps cover the repair costs, preventing major financial loss.
- A landscaping business has multiple trailers filled with tools parked in their yard. One night, vandals break into the yard and steal the trailers and equipment. Because they have Yard Coverage, the business can file a claim to recover their losses.
Did you know?
A surprising or little-known fact about yard coverage is that it often does not automatically cover customers’ vehicles or third-party property stored on the premises—even if those items are within a fenced and secured yard.
Many business owners assume that if a vehicle, equipment, or inventory belonging to a client is damaged while on their property (due to theft, fire, vandalism, or weather), their general liability or commercial property insurance will cover it. However, standard policies often exclude non-owned property unless explicitly stated or added through an endorsement.
To ensure proper protection, businesses (especially those in towing, storage, trucking, or auto repair) typically need to add Garagekeepers Insurance or Bailee’s Coverage to protect third-party property in their custody.
Category: Property Insurance