Tools and equipment insurance

Contractor's tools and equipment insurance is a form of inland marine insurance that protects small tools and equipment wherever you take them. It pays for repair or replacement if they are lost, damaged, or stolen.

This policy is designed for construction businesses and installation professionals who work at different jobsites. Standard commercial property insurance policies typically only cover items that stay at a fixed business address, which is why you might need this coverage.

You might also see this policy called equipment floater insurance or tool insurance.

Contractor’s tools and equipment insurance protects hand tools, power tools, machinery, and other equipment that moves from place to place. The items must be relatively new and inexpensive.

Tools insurance policies cover a variety of items and incidents, including the following:

A standard commercial property insurance policy won't cover tools in transit or equipment stored at a worksite. It’s risky to move items and store them off-site, which is why you may need additional coverage.

Contractor's tools and equipment insurance benefits a wide range of tradespeople and other professionals who bring tools and equipment to jobsites. Both small business owners and independent contractors should consider carrying this coverage.

Businesses that purchase this type of property coverage include:

If your power tools are 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 their replacement or repairs. The damage could happen while your belongings are in transit or stored 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.

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 important for tree service professionals, lawn care companies, and others who bring their work equipment with them everywhere they go.

Complete Insureon’s easy online application today to get contractor's tool and equipment insurance quotes from top-rated U.S. carriers. Our expert insurance agents can help you find the best coverage for your small business insurance needs.

Once you find the right policies for your business, you can get coverage quickly and receive a copy of your certificate of insurance in less than 24 hours.

Contractor's tools and equipment insurance is ideal for businesses that operate on a small budget. However, it doesn't cover every instance of property damage, and it's not designed for certain types of equipment.

Here are a few examples of common exclusions:

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 instead of buying standalone coverage.

A BOP bundles general liability coverage with commercial property insurance at a discount. Some insurance providers will let you add business interruption insurance to a BOP, which helps your business recover from downtime caused by a fire or other covered property claim.

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, as well as boiler and machinery insurance, which is designed for equipment or machinery that suffers a mechanical failure at your business.

If you're unsure which type of policy you need or have questions about other insurance products, consult a licensed insurance agent who can help you find the right equipment insurance policy for your small business.