Contractor’s tools and equipment insurance

Construction businesses rely on this policy to cover potential losses at a worksite or construction project.

If your toolbox is stolen from a client's backyard, or a recently purchased scissor lift breaks during a project, contractor’s tools and equipment insurance can pay for its repair or replacement. The damage could happen while your belongings are in transit or in storage away from your business office.

For example, say an electrician’s toolbox disappears while left overnight at an office worksite. Contractor’s tools and equipment insurance would cover the cost of purchasing a new toolbox and replacing the tools that were stolen.

Installation professionals depend on this policy to protect their tools and equipment left at a client's home, office, or other property during a project.

For example, it could cover the cost of replacing a fence installer's post hole digger stolen from a client's yard, or an appliance installer's adjustable wrench set stolen from their van.

It also covers damaged and destroyed items, such as a shipment of glass for a window installer that's stored outside at a client's property during a windstorm.

Because they work at different outdoor locations, landscapers need contractor's tools and equipment insurance to protect their lawnmowers, leaf blowers, and other tools of the trade.

This policy covers the cost of rakes and hedge trimmers stolen from your pickup, or a replacement lawnmower if yours breaks unexpectedly.

Travel and outdoor storage are both risky, which is why this coverage is so important for tree service professionals, lawn care companies, and others who bring their work equipment with them wherever they go.

If you're a small business owner or a contractor, you may be able to add contractor’s tools and equipment coverage to your business owner’s policy. A BOP bundles general liability insurance with commercial property insurance, usually at a lower premium than purchasing each policy separately.

Read more about the eligibility requirements for a BOP.

Simply put, it depends on the items you wish to insure. Contractor's tools and equipment insurance is designed for items valued at less than $10,000. Specialized equipment or heavy machinery may require inland marine insurance.

If you're looking at an item like a costly bulldozer, backhoe, or excavator, inland marine insurance is likely the appropriate policy. If you only need insurance coverage for lawnmowers, saws, or hand tools, then contractor's equipment insurance should be enough.

There's also equipment breakdown insurance, which is designed for machinery or equipment that suffers mechanical failure at your business.

If you're unsure which policy you need, consult a licensed insurance agent who can help you find the right equipment insurance policy for your small business.