Tools, Equipment & Theft
Does General Liability Insurance Cover My Tools?
No. General liability covers damage you do to other people’s property — not damage or theft of your own tools. For tools, you need a separate inland marine policy.
Or call (234) 231-8427 — Mon–Fri, 9 AM–5 PM EST
Why GL Doesn’t Cover Your Tools (And What Does)
General liability is third-party coverage by design. The policy responds when you hurt someone else or damage their property. It explicitly excludes damage to your own property, including the trailer of tools sitting in your driveway, the table saw stolen out of your truck, and the laser level the framer dropped off the ladder. Learn more about general liability insurance for contractors or scroll down for the details on this question.
The right policy for tools is called an inland marine policy — sometimes branded as “tools and equipment” or “contractor’s equipment” coverage. It is first-party property insurance that pays for theft, vandalism, fire, accidental damage, and many other causes of loss to:
- Hand tools and small power tools (your van and trailer contents)
- Larger equipment (compressors, generators, scaffolding, ladders)
- Mobile electronics (lasers, leveling instruments, jobsite tablets)
- Tools and gear loaned to or borrowed from others
- Materials and supplies temporarily stored at a jobsite or in transit
Inland marine is shockingly affordable for what it covers. Most contractors carrying $10,000–$25,000 of tools pay $15–$40 a month bundled with their GL. For a roofer or framer with $50,000+ in equipment, premiums typically run $50–$120 a month. Deductibles are usually $500 or $1,000 per claim.
One detail worth getting right at quote time: schedule your most expensive items specifically. A $7,000 laser level or a $4,500 plasma cutter should be listed by serial number with its replacement cost. Schedule-on items carry a higher per-item limit than the blanket tools category and pay closer to actual replacement cost at a claim.
The Right Answer
GL = damage to others. Inland marine = damage to your stuff. Most contractors need both, and Trade Safe quotes them together so the package always closes the gap.
Coverage Most Contractors Forget to Add
Beyond a basic inland marine policy, several specific endorsements close gaps that catch contractors off-guard at claim time:
- Borrowed and rented equipment — covers equipment you rent from a supply house or borrow from another contractor. Most rental contracts make you fully responsible for the gear; this endorsement actually pays.
- Tools in unattended vehicles — some policies restrict coverage when a truck or trailer is left overnight on a jobsite. Read the fine print or get the restriction removed.
- Mysterious disappearance — covers tools that vanish without proof of theft (the most common real-world loss). Not all policies include this by default.
- Employee tools — coverage for tools owned by your crew but used on your jobs. A separate sub-limit, often $1,000–$2,500 per employee.
Trade Safe quotes inland marine alongside GL on every contractor application and walks through each of these add-ons during the intake call. A $25 endorsement that pays a $4,000 claim is the cheapest insurance any contractor will ever buy.
Common Tool Loss Scenarios — And Which Policy Pays
| Scenario | Which Policy Pays? |
|---|---|
| Your trailer of tools is stolen overnight | Inland marine |
| A subcontractor’s saw falls off your truck and damages a parked car | GL (the car) + inland marine (the saw) |
| Fire at the jobsite destroys $15K of equipment in your van | Inland marine |
| You drop a hammer through the homeowner’s skylight | GL |
| A helper trips on your extension cord and breaks a wrist | GL |
| Your laser level is stolen out of an unlocked truck | Inland marine (subject to deductible) |
The Trade Safe Difference
Why Contractors Choose Trade Safe
Independent Agency
We shop dozens of A-rated carriers on one application so you get the best price and the right policy form for your trade — not whatever a single carrier wants to sell you.
20+ Years in Contractor Insurance
We do nothing but contractor insurance. We know the trade classifications, the carrier appetites, and the endorsements your GC will demand on every COI.
Same-Day Certificates of Insurance
Need an additional insured added before your Monday morning walk? Text or call. We move at jobsite speed, not corporate call-center hold-music speed.
Get a Contractor GL Quote Today
An independent agent who shops dozens of A-rated carriers — and knows your trade inside and out.
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