Tools & Equipment Insurance
Are Damaged Tools Covered by Tools Insurance?
On open-perils policies, yes — accidental physical damage is covered. Named-perils policies may only cover specific causes like fire and theft.
Call (234) 231-8427 — Mon–Fri 9AM–5PM EST
Does tools insurance cover accidentally damaged tools?
Whether damaged tools are covered depends on your policy form. An open-perils (all-risk) tools policy covers any sudden, accidental physical damage not specifically excluded. Dropping a tool, crushing equipment under materials, or impact damage during transit — all covered.
A named-perils policy only covers specific causes listed in the policy. If accidental damage isn’t named, it’s not covered. This is why open-perils coverage is strongly preferred for contractors.
Wear and tear and gradual deterioration are excluded under both forms. If your drill motor burns out from years of use, that’s maintenance — not a covered claim. But if you drop it off a scaffold and it’s destroyed, that’s an insurable accidental loss.
Get the right tools coverage today.
Trade Safe shops dozens of A-rated carriers to find you the best tools & equipment policy for your trade.