Contractor’s tools and equipment insurance for installation businesses

Contractor’s tools and equipment insurance is a type of inland marine insurance designed for mobile items. This policy is sometimes referred to as equipment floater insurance.

As you travel from one installation job site to another, you need property coverage that protects your tools and construction equipment wherever you take them. If your drywall finishing tools are stolen from outside a client’s home, for instance, contractor’s tools and equipment insurance can pay the replacement cost.

This policy usually offers coverage for:

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

If you run a small installation business, you should look into bundling contractor’s equipment insurance coverage with your general liability insurance or business owner's policy (BOP). This policy offers coverage for up to $10,000. If you have more expensive equipment, you may need to purchase inland marine insurance.

Speak with a licensed Insureon agent about contractor’s equipment coverage for your installation company.

Contractor’s tools and equipment coverage doesn’t only pay for stolen items like a tool box or piece of equipment that disappears from your truck. If your employee's tools are damaged by vandalism, a work accident, or other covered loss, this policy will pay for repair or replacement. However, it does not cover general wear and tear.

Contractors can choose between insuring their tools and equipment for their replacement value and actual cash value, with actual cash value costing less.

• Hand tools, such as saws, wrenches, and hammers
• Power tools, like drills, nail guns, compressors, and jigsaws
• Heavy equipment, such as forklifts, mini excavators, and small bulldozers and backhoes

Not all installation businesses have the same insurance needs and requirements. Our licensed insurance agents can help your appliance, flooring, or other installation company secure a policy that provides optimal protection for your profession’s risks.

Contractor’s tools insurance covers the value of lost, stolen, and damaged equipment, but it doesn’t provide coverage for injuries or other risks that could result in financial loss. Installation business owners should also consider the following coverage options:

General liability insurance: This policy covers legal defense costs from a customer's bodily injury or property damage, such as a customer who sues an appliance installer over scratched hardwood floors.

Business owner's policy: A BOP bundles general liability coverage with commercial property insurance at a discount. It protects against common third-party accidents and business property damage.

Workers’ compensation insurance: Workers’ comp helps pay for medical expenses from work-related injuries and illnesses. It's required in most states for installation businesses that have employees.

Commercial auto insurance: This policy covers accidents involving a vehicle owned by your installation business. Most states require this coverage for vehicles owned by a business. You may need a mobile equipment endorsement for forklifts and other machinery driven on public roads.

Cyber insurance: Any business that handles personal information, from credit card numbers to email addresses, should carry this coverage. It covers costs related to data breaches and cyberattacks.

Are you ready to safeguard your installation business with contractor’s tools and equipment insurance, or another policy? Complete Insureon’s easy online application today to get quotes from leading U.S. insurance companies. Once you find the right policy, you can begin coverage in less than 24 hours.