Atlantic Mutual forms team to address equipment theft. (Loss/Risk Management Notes: Property/Casualty).

Atlantic Mutual is teaming with LoJack Corp. and National Equipment Register to promote programs that reduce the risk of contractor equipment theft. In 2000, approximately 5,400 heavy equipment thefts were reported to the National Crime Information Center, according to the National Insurance Crime Bureau.

The Contractors Equipment Program rolled out the pilot program at the end of the summer in Texas with plans to expand nationwide. Atlantic Mutual will require some clients to install LoJack on high-risk equipment and in turn, will offer a $10,000-deductible waiver on LoJack-protected machinery.

The program also includes an agreement with National Equipment Register that will grant Atlantic Mutual policyholders a 20% discount on HELPTech. This is a service sponsored by NER that allows equipment owners to register machinery on a national database that can be tracked by law enforcement officials, insurance companies and equipment owners. NER provides a 24-hour police hotline to confirm the ownership and status of equipment discovered in suspicious circumstances.

Equipment theft currently costs owners and insurance companies about $1 billion a year. The high value and demand for contractors' equipment that is usually located at remote work sites make this equipment an attractive target for thieves, according to NER. The NICB also reports the recovery rate for stolen heavy equipment is only 9% to 18%, compared to 65% to 70% of vehicles.