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

This policy helps pay for repair or replacement of a contractor or construction business's tools and equipment if they're 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 a toolbox is stolen from a jobsite, contractor’s equipment insurance coverage can pay the replacement costs.

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 a construction equipment insurance policy to your general liability insurance or business owner's policy (BOP). 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 options for your business.

Contractor’s equipment insurance covers damage from work incidents

Contractor’s tools and equipment coverage doesn’t only pay for stolen employee tools, such as a carpenter's saws that disappear from a construction site. If vandalism or a work accident leads to damaged equipment, this policy will pay the cash value for the repair or replacement. However, it does not cover general wear and tear.

Contractor’s equipment and tool insurance can protect:

  • Hand tools, such as saws, wrenches, and hammers
  • Power tools, like drills, nail guns, jigsaws, and welding machines
  • Heavy equipment, such as excavators, backhoes, and bulldozers
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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?

Construction contractor calculating insurance costs.

Construction and contracting professionals pay an average of $14 per month for insurance for work tools.

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

  • Type of construction and contracting services offered
  • Business equipment and property
  • Total revenue and number of employees
  • Where your business operates
  • Your liability claims history
  • Property coverage limits and deductible

Other important policies for construction and contracting businesses

Contractor’s tools and equipment insurance covers the value of lost or stolen tools, or damage to a piece of 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 a fire or vandalism at a construction site.

Contractors pollution liability (CPL) insurance: CPL is a type of environmental insurance that covers pollution liability risks for contractors and their subcontractors.

Additional insured endorsement: This extends coverage to anyone other than the policyholder, and can be required by clients, contractors, and subcontractors depending on the project or contract.

Get free quotes and buy online with Insureon

Are you ready to safeguard your construction business with contractor’s tools and equipment insurance? Insureon helps contractors find insurance from top-rated insurance companies with one easy online application.

You can also speak with a dedicated Insureon insurance agent to learn which policies match your insurance needs and your budget, as well as any exclusions you might face. Once you find the right policy, you can begin coverage and get a certificate of insurance in less than 24 hours.

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Updated: September 29, 2023

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