Commercial Auto Insurance

Are Tools in Your Truck Covered by Commercial Auto?

Tools In Work Truck Covered Commercial Auto — everything contractors need to know to stay protected on the road and on the job.

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Why Commercial Auto Doesn’t Cover Your Tools

As a contractor, your vehicles are central to your business — hauling materials, reaching job sites, and transporting equipment. Commercial auto insurance protects your trucks, vans, and specialized vehicles from liability, collision, and comprehensive losses that personal policies won’t cover.

What Commercial Auto Actually Covers

Commercial auto insurance covers the vehicle itself — liability for accidents, collision damage, and comprehensive losses (theft of the vehicle, storm damage). It does NOT cover the contents of the vehicle, including tools, equipment, and materials.

The Coverage Gap Most Contractors Miss

Many contractors assume their commercial auto policy protects the $15,000–$40,000 worth of tools they carry in their truck. It doesn’t. If someone breaks into your truck and steals your tools, commercial auto pays $0 for the tools themselves.

Inland Marine / Tools & Equipment Coverage

A tools and equipment policy (also called inland marine or a contractor’s equipment floater) specifically covers tools and equipment wherever they are — in your truck, at the job site, or in storage. This is the coverage you need for your tools.

Scheduled vs. Blanket Coverage

You can cover tools on a scheduled basis (listing each item with its value) or under a blanket limit (all tools up to $X). Blanket is simpler; scheduled coverage is better for high-value individual items like laser levels, pipe cameras, or specialty power tools.

Bundling for Efficiency

Trade Safe can bundle your commercial auto and tools & equipment coverage under a commercial package policy, making it easier to manage and potentially reducing your overall premium. This ensures no gaps between policies.

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Frequently Asked Questions

If my truck is stolen with tools inside, what’s covered?

The vehicle itself is covered under commercial auto comprehensive coverage. The tools inside are NOT covered — you’d need a separate tools & equipment policy or inland marine coverage for those losses.

How much does tools & equipment coverage cost?

Most contractors pay $300–$900/year for a tools & equipment policy covering $15,000–$50,000 in equipment. The cost depends on the total value, types of tools, and your claims history.

Does homeowner’s insurance cover my work tools?

Usually no — most homeowner’s policies exclude business property. Even if they include some business property coverage, tools used primarily for business will likely be excluded or subject to low sublimits.

Can I get tools covered under my commercial auto policy with an endorsement?

Some carriers offer a limited tools endorsement on commercial auto, but coverage limits are typically low ($500–$2,000). A standalone tools & equipment policy provides much more comprehensive protection.

What tools should I make sure are scheduled specifically?

High-value items that would be expensive to replace: laser measuring devices, diagnostic equipment, pipe cameras, specialty hand tools, power tool sets over $1,000 per item, and any rented equipment in your care.