Construction equipment theft 101

Table of Contents

1. Rising Risks in Ontario’s Growing Construction Industry: The Threat of Equipment Theft
2. Key Preventative Steps for Contractors
3. Additional Protection

Rising Risks in Ontario’s Growing Construction Industry: The Threat of Equipment Theft

The construction industry in Ontario has experienced steady growth over the past several years, reflecting a thriving economic landscape with expanding opportunities. However, this growth also brings with it an increase in risks, one of the most pressing being the theft of construction equipment.

Construction equipment theft can be perpetrated by opportunistic individuals or, more alarmingly, by sophisticated criminal organizations with elaborate schemes. Current estimates suggest that the annual cost of construction equipment theft ranges from $300 million to $1 billion. Unfortunately, the majority of this stolen equipment is never recovered, leaving a substantial financial burden on affected businesses.

The financial repercussions of such thefts extend beyond the immediate cost of replacing the stolen equipment. Businesses also face significant operational disruptions, including scheduling challenges, lost work hours, and diminished productivity. These disruptions can cause delays in project timelines, impact client relationships, and ultimately affect a company’s profitability. Therefore, addressing this risk is crucial for maintaining smooth operations and safeguarding the investments made in construction equipment.

Insurers frequently inquire about the measures contractors have implemented to safeguard their tools and equipment from theft. As theft of construction equipment poses a significant risk, contractors must adopt a range of preventative strategies to protect their valuable assets. Implementing effective security measures not only helps in mitigating the risk of theft but also demonstrates due diligence and can potentially lead to lower insurance premiums.

Unica’s IICRC Certified Field Operations, David Collins says: Attention Contractors: Ensuring the continuity of your business requires a combination of preventative theft measures and collaborating with your insurance broker to secure proper coverage for your equipment.

Key Preventative Steps for Contractors

Secure Storage Solutions

Use high-quality, lockable storage containers or toolboxes to store equipment when not in use. Secure these containers in a fenced area with controlled access to deter unauthorized individuals.

Surveillance & Alarm Systems

Install security cameras around job sites and storage areas. Visible cameras can act as a deterrent, while recorded footage can aid in recovering stolen items and identifying culprits. Employ security guards or patrols, especially on larger or high-value job sites. Their presence can deter thieves and provide an additional layer of protection. Implement motion sensors and alarm systems in storage areas and job sites. These systems can alert you to any unauthorized access or suspicious activity in real-time.

Enhanced Locking Mechanisms

Invest in heavy-duty locks and immobilizers for equipment. Consider using multiple locks on valuable machinery to make theft more difficult and time-consuming.

Regular Inventory Checks

Conduct frequent inventories of tools and equipment to monitor what is on-site and quickly identify any missing items. Keeping accurate records can help in managing and recovering stolen equipment.

Vehicle Security & Equipment Marking

When equipment is transported, use secure transport methods and ensure vehicles are locked and equipped with GPS tracking devices. Avoid leaving valuable items in vehicles overnight. Chain smaller equipment to larger equipment. Also, immobilize equipment by removing rotors, batteries, etc. Mark all equipment with unique identifiers, such as serial numbers or company logos. This makes it easier to track stolen items and proves ownership if recovered.

Additional Protection

By implementing these measures, contractors can significantly reduce the risk of theft and protect their valuable equipment and tools, thereby ensuring the smooth operation of their projects and minimizing financial losses. Speak with your broker to verify that you have adequate coverage to protect both your business and your construction assets. Also, work with your Broker and insurer to develop a plan and strategy to mitigate theft losses. To learn more about safeguarding your construction business, explore Unica’s Contractors Connection®.— Combining protection for you, your employees, your building materials and your equipment, Unica’s contractor insurance offers best-in-class protection bundled together at a competitive price.