Contractor Insurance Guide
Tools & Equipment Insurance for Contractors
Your tools are your business. One theft, one job site loss, one break-in can cost thousands. Get the coverage that protects your gear wherever it goes.
- Covers tools on the job site, in your truck, and in storage
- Theft, vandalism, fire, and accidental damage covered
- Blanket or scheduled coverage to fit any budget
- Rented and leased equipment also insurable
Call (234) 231-8427 — Mon–Fri 9AM–5PM EST
What Is Tools & Equipment Insurance?
Tools and equipment insurance — also called inland marine insurance or a contractor’s equipment floater — is a specialized policy that covers the physical tools and equipment contractors use on the job. Unlike general liability (which covers damage you cause to others) or commercial auto (which covers your vehicle), tools and equipment insurance covers the gear itself.
Coverage applies wherever your tools are — at the job site, in your truck, in a storage unit, or in transit between locations. This “floater” nature is what makes it uniquely valuable for contractors whose equipment moves constantly.
The average contractor carries $15,000–$60,000 in tools and equipment. Without a dedicated policy, a single theft or loss event can set your business back months.
What It Covers
- Theft from job site or vehicle
- Fire and smoke damage
- Vandalism
- Accidental physical damage
- Tools in transit
- Rented equipment (with endorsement)
What It Doesn't Cover
- Normal wear and tear
- Mechanical breakdown (usually)
- Tools left in unlocked vehicles (some carriers)
- Employee theft (check policy)
- Mysterious disappearance (some carriers)
Who Needs It
- General contractors
- Electricians and plumbers
- HVAC technicians
- Roofers and framers
- Concrete and masonry contractors
- Any trade carrying $5,000+ in tools
How Tools & Equipment Coverage Works
Blanket Coverage
Set a total limit (e.g., $25,000) that applies to all tools and equipment collectively. Simpler and easier to manage — no need to list every item. Best for contractors with many smaller tools.
Scheduled Coverage
List each tool or piece of equipment individually with its value. Better for high-value items — laser levels, pipe cameras, specialty diagnostic equipment. Ensures full replacement value for your most expensive gear.
Replacement Cost vs. ACV
Replacement cost pays what it costs to buy the same tool new today. Actual cash value (ACV) deducts depreciation — you get less. Always choose replacement cost if you can afford the slightly higher premium.
Rented Equipment
Many contractors rent skid steers, trenchers, and lifts. A rented equipment endorsement extends your tools policy to cover damage or theft of equipment in your temporary care — potentially saving you the rental yard’s expensive damage waiver fees.
How Much Does Tools & Equipment Insurance Cost?
Most contractors pay $300–$900 per year for tools and equipment coverage. Cost depends on the total value of your tools, your trade, claims history, and whether you choose blanket or scheduled coverage.
$300
per year — small contractor, $10K–$15K in tools
$600
per year — mid-size crew, $30K–$50K in tools
$900+
per year — larger operation, heavy equipment, $75K+
Keep Reading
Explore More About Tools & Equipment Insurance
→ Inland Marine Insurance Explained
→ Tools Insurance vs. Commercial Auto
→ Blanket vs. Scheduled Coverage
→ Insuring Rented Equipment
→ Heavy Equipment Insurance
→ How Much Does Tools Insurance Cost?
→ Coverage for Tools Left on a Jobsite
→ Leased and Financed Equipment Insurance
→ Tools Coverage for Electricians
→ What Is a Contractor's Equipment Floater?
→ Does Tools Insurance Cover Employee Theft?
Frequently Asked Questions
Does my general liability policy cover my tools?
Are tools covered while in my work truck?
What is the difference between tools insurance and inland marine?
How do I know how much coverage to get?
Can I add rented equipment to my tools policy?
Is there a waiting period before my tools are covered?
Protect Your Tools & Equipment Today
Related Coverage