What is contractor’s tools and equipment insurance?

Contractor’s tools and equipment insurance, also called equipment floater insurance, is designed for construction and contracting companies that work at different job sites. It protects movable tools and equipment wherever they are stored and pays for repair or replacement if they are lost, damaged, or stolen. However, it does not cover general wear and tear.

This coverage is a form of inland marine insurance for small tools and equipment under $10,000. It can typically be added to your commercial property insurance policy.

Construction companies and contractors depend on their tools to get the job done. However, a standard commercial property insurance policy might not 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.

If your toolbox is stolen from a worksite or a recently purchased backhoe 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.

If you’re a small construction company or 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.

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