Each year, construction companies face a growing challenge: equipment theft. Shockingly, only about 21% of stolen construction gear is ever recovered. While small tools and generators often disappear first, losing something big like an excavator or skid steer can shake a project—and the company’s finances—hard.
Jim Johnson, a loss control specialist at Central Insurance, says every contractor should expect theft as a possible problem. “The small stuff, like welders and handheld tools, tends to get taken first. But when a big machine goes missing, it really hurts,” he explains.
When equipment seems to have gone missing, the very first step is to double-check. Sometimes gear isn’t stolen at all—it could be borrowed by someone on the crew or left at another jobsite by accident. Johnson warns that jumping to conclusions too fast can cause blame and mistrust among workers. To avoid confusion, he recommends keeping detailed logs that show exactly what equipment is where and who’s responsible for it. This helps companies quickly spot a real theft versus a simple mix-up.
If theft is confirmed, contacting the police right away is essential. A police report helps with both tracking down the stolen items and dealing with insurance claims. Johnson also suggests doing an internal review to find out how the theft happened. Was the site left open after hours? Were keys or access codes left unsecured? Could someone connected to the company have been involved? Answering these questions helps fix weak spots and prevent theft from happening again.
Next, contractors should reach out to their insurance agent. Many insurance plans, like inland marine policies, cover construction tools and machines on or off the jobsite. Large equipment may be listed individually in a policy, while smaller tools might be grouped together. Johnson stresses the importance of keeping insurance records up to date, especially when equipment is bought or sold, so coverage matches what’s on-site.
Losing equipment can halt work and cause costly delays. But most contractors find ways to keep projects going by renting replacements or borrowing from other sites. Having trusted rental contacts ready makes this easier and faster. Johnson also reminds contractors to carefully track any extra costs or downtime caused by theft. This documentation can help with insurance claims and keeping clients informed. He points out it’s important to support the team emotionally too, since theft can hurt morale.
Looking ahead, preventing theft is just as important as dealing with it. Johnson recommends securing jobsite layouts, lighting, fencing, and locking up all gear. Using security cameras and motion sensors can warn off thieves. Some companies even hide GPS trackers or AirTags on equipment to help find it if it goes missing. Enrolling machines in the National Equipment Registry also boosts chances of recovery if stolen gear shows up in unexpected places like pawn shops. For big machines, adding hidden kill switches can stop thieves from using them.
Regular discussions with the team about theft incidents and prevention keep everyone aware and alert. Johnson says, “When your crew knows what to watch for, they help protect your gear.”
While a single theft might not raise insurance rates, repeated claims often do. Insurance companies see multiple losses as a sign of poor security and may demand improvements or refuse coverage. Central Insurance offers support to contractors by helping with loss control measures to spot vulnerabilities before they become bigger problems.
At the end of the day, theft not only costs money but disrupts work and adds stress. Having a plan to confirm missing equipment, report it, involve insurance, keep projects moving, and boost security can make a big difference. Central Insurance encourages contractors to reach out to local agents for personalized help to protect their teams and equipment from future thefts.