Tools & Equipment Insurance
Tools & Equipment vs. Commercial Auto — What Covers What
Tools & Equipment vs. Commercial Auto — What Covers What — everything contractors need to know to protect their tools and equipment.
Call (234) 231-8427 — Mon–Fri 9AM–5PM EST
Two Different Policies, Two Very Different Purposes
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.
Commercial Auto Covers the Vehicle
Commercial auto insurance protects your truck or van — liability if you cause an accident, collision damage to your vehicle, and comprehensive losses (vehicle theft, storm damage, fire damage to the vehicle). It does not cover the contents of your vehicle.
Tools Insurance Covers What’s Inside
A tools and equipment policy covers the gear inside your truck, on your job site, in storage, and in transit. If someone breaks into your locked truck and steals $20,000 in power tools, commercial auto pays $0 — your tools policy pays.
The Gap Most Contractors Miss
Many contractors assume their commercial auto covers their tools because the theft happened to their truck. It doesn’t. The moment the loss is tools/contents rather than the vehicle itself, you need your inland marine / tools policy.
When Both Policies Are Involved
If your truck is totaled in an accident AND all your tools are destroyed in the same event, commercial auto covers the vehicle loss and your tools policy covers the equipment loss. Having both policies ensures full recovery with no gaps.
The Smart Bundle Approach
Trade Safe often writes commercial auto and tools & equipment coverage together. This eliminates any ambiguity about which policy covers what, ensures proper limits for both exposures, and often results in lower combined premiums than separate policies with different carriers.