Tools & Equipment Insurance
What Is a Contractor’s Equipment Floater?
What Is a Contractor’s Equipment Floater? — everything contractors need to know to protect their tools and equipment.
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The Coverage Form That Follows Your Equipment Anywhere
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.
Definition: Equipment Floater
A contractor’s equipment floater is a type of inland marine insurance policy that covers contractor-owned tools and equipment at any location — job sites, in transit, in storage, or at your yard. The term ‘floater’ reflects that the coverage ‘floats’ with the property wherever it goes, rather than being tied to a fixed location.
What It Covers vs. What It Doesn’t
Equipment floaters cover theft, fire, vandalism, accidental physical damage, and damage during transit. They typically exclude wear and tear, mechanical breakdown, and (in most cases) employee theft. Some forms exclude flood damage and earthquake — check your specific policy.
Scheduled Form vs. Blanket Form
Floaters are written on either a scheduled basis (each piece listed with agreed value) or a blanket basis (one total limit for all equipment). Scheduled forms are preferred for heavy equipment where individual items are worth $10,000+. Blanket forms work well for large tool inventories where individual items are worth less.
Equipment Floater vs. Builders Risk
These are both inland marine products but cover different things. A builders risk policy covers the structure under construction. An equipment floater covers contractor-owned tools and equipment. A contractor on a job site may need both — builders risk for the project itself and an equipment floater for their tools.
Who Should Have an Equipment Floater
Any contractor carrying more than $5,000 in tools, owning heavy equipment, using rented equipment regularly, or working on job sites where tools could be left overnight should have an equipment floater. It’s one of the most cost-effective coverages available relative to the protection it provides.