Evolving Equipment Risks Drive Demand for More Flexible Insurance Approaches Across Canada

CHES Special Risk Inc. has expanded its underwriting capabilities with the introduction of a specialized market for Contractors Plant & Equipment (CPE), reflecting a broader shift in how brokers and insurers are approaching mobile equipment risks across Canada.

The move comes amid growing complexity in industries such as construction, mining, forestry, agriculture, and equipment leasing, where traditional insurance structures are increasingly being challenged by how equipment is actually used in the field.

From Job Site to Job Site - A Changing Risk Landscape

Unlike fixed assets, mobile equipment rarely stays in one place.
A single piece of machinery such as an excavator may:

• Be used on a downtown construction site one week
• Travel between projects across provinces
• Sit idle in storage yards between contracts
• Be leased to a third party for seasonal work

Each phase introduces a different exposure profile, from transit risks to theft during storage, or operational risks in unfamiliar environments.

“Equipment risk doesn’t begin and end at the job site,” said Gary Hirst, CEO, CHES Special Risk. “The reality is that these assets are constantly moving and insurance structures need to reflect that.”

Where Traditional Coverage Can Fall Short

Historically, equipment coverage has often been tied to specific projects or locations, leaving potential gaps when:

• Equipment is in transit between sites
• Machinery is leased or subcontracted
• Assets are stored off-site for extended periods
• Equipment operates across multiple industries or jurisdictions

For example:

• A crane being transported between cities may not fall neatly within project based coverage
• Forestry equipment leased during off season periods may carry different liability and usage exposures
• Agricultural machinery used intermittently may face coverage continuity gaps

These scenarios are becoming more common as project timelines shorten and operational models become more fluid.

A Shift Toward Continuous, Asset Based Coverage

The expanded CPE capability reflects a growing market shift toward coverage that follows the equipment not just the project.

This includes consideration for:

• Equipment in operation, in transit, or in storage
• Multi-industry usage across varying risk environments
• Changing ownership or leasing arrangements
• Cross border or multi-location exposures

Industry observers note that this approach aligns with how businesses now manage their assets - particularly as equipment mobility and utilization rates continue to increase.

Why This Matters for Brokers

For brokers, the implications are becoming more pronounced.
As equipment portfolios grow and diversify, placement challenges are emerging around:

• Coverage continuity across multiple sites
• Aligning policies with real-world usage patterns
• Addressing exposures outside traditional underwriting appetite
• Managing risks tied to leasing, subcontracting, and shared equipment use

This is driving demand for more specialized underwriting frameworks that can accommodate non standard scenarios.

“Brokers are increasingly looking for solutions that go beyond static coverage models,” Hirst added. “The conversation is shifting toward flexibility, clarity, and alignment with how equipment is actually deployed.”

Part of a Broader Market Trend

The introduction of a more flexible CPE framework also reflects a wider evolution within the commercial insurance market.
As risks become more:

• Mobile
• Interconnected
• Operationally complex

There is growing recognition that standardized placements may not fully address niche or evolving exposures.

Specialty segments like mobile equipment are increasingly at the forefront of this shift highlighting the importance of adaptable underwriting approaches and deeper industry understanding.

Looking Ahead

As infrastructure activity, resource projects, and equipment leasing models continue to expand across Canada, demand for more responsive insurance solutions is expected to grow. For brokers navigating these risks, the ability to align coverage with how equipment is truly used across locations, industries, and ownership structures will remain a key consideration in the months ahead.

ABOUT CHES Special Risks Inc.

CHES Special Risks Inc. was established as a Managing General Agent and Wholesale broker in 2004, in response to broker demand to a hardening market place, commencing with a particular speciality in the entertainment and hospitality business, later becoming a fully accredited Lloyd’s coverholder in 2009. CHES Special Risks Inc. and Sister Companies are a fully Independent MGA delivering “A” rated capacity both in the hard to place, and standard lines classes and support their retail brokers in growing and developing their businesses.

Additional information regarding CHES Special Risks Inc. can be found at: http://www.CHESspecialrisk.ca.

If you would like more information about this topic, please call us at 416-452-7850 or email Gary.Hirst@CHESspecialrisk.ca.