Tools & Equipment Insurance
Filing a Tools & Equipment Insurance Claim
Filing a Tools & Equipment Insurance Claim — everything contractors need to know to protect their tools and equipment.
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What to Do When Your Tools Are Stolen or Damaged
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.
Step 1 — Report to Police (For Theft)
File a police report immediately for any theft. Your insurer will require the report number as part of the claim. Document everything: when you last saw the tools, where they were stored, evidence of forced entry if applicable. A police report also creates an official record if stolen tools are later recovered.
Step 2 — Document the Loss
Create a detailed list of every missing or damaged item: make, model, approximate age, purchase price, and estimated replacement cost. Photos of the empty storage area, broken locks, or damaged tools support the claim. Serial numbers (if you have them) significantly help with recovery and claims processing.
Step 3 — Notify Your Insurer Promptly
Contact your insurer or agent as soon as possible — most policies require prompt notice of loss. Delays can complicate processing. Your insurer will assign an adjuster and provide a proof of loss form to complete.
Proof of Ownership
Receipts, photos of tools in use, bank statements showing purchase transactions, and serial number records all help substantiate your claim. If you don’t have receipts, your agent can guide you through alternative documentation. Going forward, maintain a photo inventory of all tools — a simple smartphone album works.
Claim Settlement: Replacement Cost vs. ACV
If you have replacement cost coverage, you typically receive ACV first, then the balance after you actually replace the items (some carriers pay full replacement cost upfront). With ACV coverage, settlement is based on the depreciated value of the tools at time of loss.