Tools & Equipment Insurance
Blanket vs. Scheduled Tools Coverage — Which Is Right for You?
Blanket vs. Scheduled Tools Coverage — Which Is Right for You? — everything contractors need to know to protect their tools and equipment.
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Two Coverage Structures — One Is Almost Always Better for Your Situation
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.
Blanket Coverage: Simple and Flexible
With blanket coverage, you set one total limit — say, $30,000 — that covers all your tools and equipment collectively. You don’t need to list individual items. If tools are stolen or damaged, the claim is paid up to that blanket limit regardless of which specific tools were lost.
Scheduled Coverage: Item-by-Item Precision
Scheduled coverage lists each tool or piece of equipment individually with its agreed value. If a listed item is stolen or destroyed, you’re paid the scheduled amount for that specific item — no depreciation debate, no ambiguity.
When Blanket Makes Sense
Blanket coverage works well when you have many lower-value tools with no single item worth more than $2,000–$3,000. It’s simpler to manage, easy to update, and avoids the paperwork of listing dozens of items. Most small to mid-size contractors find blanket coverage sufficient.
When Scheduled Coverage Is Worth It
Schedule high-value individual items: laser levels ($1,500+), pipe inspection cameras ($3,000+), specialty diagnostic equipment, commercial-grade generators, and any item that would be expensive and difficult to replace. Scheduling these items ensures you receive full replacement value for your most critical tools.
The Hybrid Approach
Many contractors use a hybrid: a blanket limit for general tools, plus scheduled items for high-value equipment. This provides administrative simplicity for the bulk of your tools while ensuring adequate coverage for your most expensive gear.