Insurance for Construction Companies and Contractors
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Contractor’s tools and equipment insurance for construction businesses

Contractor’s tools and equipment coverage icon

Contractor's tools and equipment insurance

This policy helps pay for repair or replacement of a contractor’s tools and equipment if they are lost, stolen, or damaged. The items typically must be less than five years old.

Protect your construction tools wherever you go

A form of inland marine insurance, contractor’s tools and equipment insurance helps construction and contracting businesses recover the cost of lost, stolen, and damaged items.

Because your business moves to different worksites, you need a policy that can cover your equipment wherever you bring it. For example, if your carpentry tool box is stolen from a client’s yard, contractor’s equipment insurance can pay for the cost of replacement.

This policy usually offers coverage for:

  • Equipment less than five years old
  • Mobile equipment
  • Small tools

Bundle policies to save money and increase coverage

If you run a small construction or contracting business, you might want to look into adding contractor’s equipment insurance to your general liability insurance or business owner's policy. This provides coverage for up to $10,000. If you have more expensive building equipment, you may need to purchase inland marine insurance.

Talk to a licensed Insureon agent about contractor’s equipment coverage for your business.

Contractor’s equipment insurance covers damage from work incidents

Contractor’s tools and equipment coverage doesn’t only pay for stolen items like a tool box that disappears from a construction site. If your equipment is damaged by vandalism or a work accident, this policy will pay for repair or replacement. However, it does not cover general wear and tear.

Contractor’s tools and equipment coverage can protect:

  • Hand tools, such as saws, wrenches, and hammers
  • Power tools, like drills, nail guns, and jigsaws
  • Heavy equipment, such as excavators and backhoes
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Customize coverage to fit your construction or contracting business

Not every construction company has the same insurance requirements. Whatever your profession, our licensed Insureon agents can assist you in tailoring a policy that provides the right protection for your risks.

How much does tools and equipment insurance for construction businesses cost?

Man in construction vest and helmet calculating insurance costs.

Construction and contracting professionals pay a median of $15 per month for contractor’s tools and equipment insurance.

Insurance costs for construction and contracting professionals are based on a few factors, including:

  • Construction and contracting services
  • Business equipment and property
  • Revenue
  • Location
  • Number of employees

Other important policies for construction and contracting businesses

Contractor’s tools and equipment insurance covers the value of lost, stolen, and damaged business equipment, but it doesn’t protect against injuries and many other risks. Construction and contracting business owners should also consider:

General liability insurance: This policy can cover expenses related to client injuries and property damage, such as a painter sued for damaging a valuable antique rug.

Business owner's policy: A BOP bundles general liability coverage and commercial property insurance at a discount. It protects against the most common lawsuits and property damage.

Workers’ compensation insurance: Workers’ comp covers medical costs for work-related injuries and illnesses. Most states require this coverage for businesses with employees.

Commercial auto insurance: This policy covers the cost of an accident involving your business vehicle. Almost every state requires this coverage for business-owned vehicles.

Professional liability insurance: This policy covers professional mistakes and oversights, such as a contractor missing a deadline for a project.

Surety bonds: These bonds reimburse your clients for financial losses if your company is unable to fulfill the terms of its contract.

Builder’s risk insurance: Builder’s risk insurance can pay for damage done to a structure still under construction, such as fire or vandalism at a construction site.

Get free quotes and buy online with Insureon

Are you ready to safeguard your construction business with contractor’s tools and equipment  insurance? Complete Insureon’s easy online application today. Once you find the right policy, you can begin coverage in less than 24 hours.

Updated: January 5, 2023
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