Tools & Equipment Insurance
Inland Marine Insurance Explained for Contractors
Inland Marine Insurance Explained for Contractors — everything contractors need to know to protect their tools and equipment.
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What ‘Inland Marine’ Actually Means — And Why Contractors Need It
Your tools and equipment are your livelihood. A single theft or job site loss can sideline your business for weeks. Tools and equipment insurance — also called inland marine or a contractor’s equipment floater — covers your gear wherever it goes: in your truck, on the job site, or in storage.
The Origin of the Term
Inland marine insurance dates to the early 1900s, when marine insurance was extended to cover goods transported on land. Despite the nautical name, inland marine today refers to any property that moves or is used at multiple locations — making it a perfect fit for contractor tools and equipment.
How It Differs From Standard Property Insurance
Commercial property insurance covers contents at a fixed location — your office or shop. Inland marine follows the property wherever it goes: job sites, trucks, storage units, or in transit. This ‘floater’ characteristic is exactly what contractors need.
What Falls Under Inland Marine for Contractors
Contractors’ tools and equipment, equipment floaters, installation floaters (for materials being installed), builders risk (a related inland marine product), and leased/rented equipment endorsements all fall under the inland marine umbrella.
Open Perils vs. Named Perils
Open perils (also called all-risk) covers any cause of loss not specifically excluded — broader and generally preferred. Named perils covers only specific causes listed in the policy (fire, theft, vandalism). Open perils costs more but provides significantly better protection.
Bundling Inland Marine With Your Other Policies
Trade Safe regularly packages inland marine / tools coverage with your GL and commercial auto in a commercial package policy. This often saves 10–20% and ensures no gaps between policies when a claim involves multiple lines of coverage.