Tools and Equipment Coverage

Inland Marine Protection for Contractors

Protect the Equipment Behind Every Job

Tools and equipment insurance can help protect the mobile property your contracting business depends on at jobsites, in transit, and during temporary storage.

From hand tools and generators to skid steers, excavators, lifts, and rented equipment, the right inland marine policy can help you recover from a covered loss and keep projects moving.

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Learning Center

Professional contractor standing beside organized tools and construction equipment at a jobsite.

Protection That Travels With the Work

Why Contractors Use Inland Marine Insurance

Jobsites Change

Your tools and equipment may move between customer properties, construction sites, storage yards, vehicles, and temporary locations.

Equipment Has Value

Replacing specialized tools, machinery, attachments, and accessories after a covered loss can create a significant business expense.

Projects Depend on It

Fast access to replacement equipment can help reduce downtime, maintain schedules, and support customer commitments.

Contractor loading secured tools and equipment into a commercial work vehicle.

Coverage for Property on the Move

What Is Contractors’ Inland Marine Insurance?

Inland marine insurance is specialized property coverage designed for tools, equipment, machinery, materials, and other business property that moves between locations or is used away from a permanent business address.

A contractor may use this coverage to protect eligible property while it is at a jobsite, transported in a vehicle or trailer, stored temporarily, or used at a customer location.

Owned Equipment

Tools, machinery, attachments, and equipment purchased and owned by the contracting business.

Rented, Leased, or Borrowed Equipment

Coverage may be available for qualifying equipment used under rental, lease, or borrowing agreements.

Newly Acquired Equipment

Some policies provide temporary automatic protection for qualifying equipment acquired during the policy period, subject to reporting requirements and limits.

From Small Tools to Heavy Machinery

Property a Contractor May Need to Insure

The equipment schedule, values, ownership, age, condition, storage, and use should accurately reflect the property your business depends on.

Hand and Power Tools

Drills, saws, nail guns, grinders, testing equipment, welding tools, compressors, and trade-specific tools.

Generators and Compressors

Portable generators, air compressors, pumps, lighting systems, and power-support equipment used at jobsites.

Skid Steers and Loaders

Skid steers, compact track loaders, wheel loaders, attachments, buckets, forks, and related accessories.

Excavators and Backhoes

Compact and full-size excavators, backhoes, trenchers, augers, breakers, and excavation attachments.

Lifts and Access Equipment

Scissor lifts, boom lifts, aerial platforms, material lifts, scaffolding systems, and other access equipment.

Concrete and Paving Equipment

Mixers, trowels, compactors, saws, screeds, rollers, finishing equipment, and specialty paving machinery.

Landscaping Equipment

Commercial mowers, trenchers, stump grinders, chippers, compact tractors, and landscape-maintenance equipment.

Surveying and Testing Equipment

Lasers, levels, surveying instruments, cameras, diagnostic tools, electronic testing devices, and specialized technology.

Attachments and Accessories

Buckets, breakers, forks, blades, trailers, GPS units, generators, and accessories should be reviewed separately when needed.

Where Contractor Property May Be Exposed

Coverage That Can Follow the Equipment

At the Jobsite

Eligible equipment being used or temporarily stored at a residential, commercial, industrial, or public project location.

In Transit

Equipment moving between the business location, storage yard, rental company, customer location, and active projects.

In Temporary Storage

Tools or machinery temporarily stored in a secured yard, warehouse, job trailer, container, or other qualifying location.

Inside Work Vehicles

Tools carried in pickups, service vans, utility trucks, trailers, or other vehicles may require specific inland marine protection.

At a Customer Location

Equipment used while completing installation, repair, maintenance, remodeling, or specialty-trade work.

At a Rental Location

Rented or leased equipment may need coverage from pickup through use and return, based on the policy and rental agreement.

Real Contractor Equipment Exposures

Examples of Covered Losses a Policy May Address

Covered causes of loss vary by policy. The equipment, value, location, security measures, and circumstances should be reviewed carefully.

Theft From a Jobsite

Power tools, generators, or equipment are stolen from a secured construction project during non-working hours.

Vehicle or Trailer Theft

A service trailer or work vehicle containing scheduled tools and equipment is stolen or forcibly entered.

Equipment Overturn

A skid steer, lift, loader, or other covered machine overturns or is accidentally damaged while operating at a project.

Transit Damage

Covered equipment is damaged while being transported between jobsites or while loading or unloading.

Contractor documenting damage to construction equipment at an organized jobsite.

Protect the Property Before a Loss

Practical Equipment-Security Measures

Strong inventory controls and physical security can help reduce theft, support underwriting, and improve claim documentation.

Record serial numbers

Photograph all equipment

Use GPS tracking

Secure trailers and containers

Use locks and immobilizers

Improve yard lighting

Limit key access

Maintain purchase records

Secured contractor equipment yard with lighting, locked storage, cameras, and organized machinery.

Respond Promptly After a Loss

What to Do if Equipment Is Stolen or Damaged

Follow emergency, law-enforcement, rental-company, and insurance-carrier instructions based on the circumstances.

Protect the Area

Address immediate safety concerns and prevent additional damage when it is safe.

Contact the Police

Report theft, vandalism, burglary, or suspicious activity and obtain a report number.

Document the Loss

Take photographs, preserve video, and collect serial numbers, receipts, and equipment records.

Report the Claim

Contact the insurance carrier promptly and provide the requested facts and documents.

Track Expenses

Save rental charges, repair estimates, invoices, towing records, and other claim-related expenses.

Contractor Equipment Learning Center

Understand the Coverage Before the Next Job

Explore focused guides about inland marine coverage, equipment schedules, valuation, related contractor policies, and the information needed to insure tools and machinery correctly.

Contractor equipment moving between a business location, vehicle, and active jobsite.

Coverage Basics

How Inland Marine Coverage Works

Learn how coverage can follow eligible tools and equipment between jobsites, vehicles, temporary storage, and customer locations.

Explore the Coverage

Contractor reviewing a rental agreement beside rented construction equipment.

Rental Agreements

Rented and Leased Equipment

Understand rental-company requirements, equipment values, continuing rental charges, deductibles, and coverage responsibilities.

Review Rental Coverage

Contractor reviewing an equipment inventory with serial numbers, photographs, and values.

Equipment Inventory

Build an Accurate Equipment Schedule

Learn what information to record for machinery, tools, attachments, values, serial numbers, and newly acquired equipment.

Create a Better Inventory

Contractor and insurance professional reviewing equipment purchase prices and current values.

Valuation Guide

Replacement Cost vs. Actual Cash Value

See how valuation provisions may affect the amount available to repair or replace covered contractor equipment.

Compare Valuation Options

Contractor reviewing individually scheduled machinery and a blanket inventory of smaller tools.

Organize the Equipment Correctly

Scheduled vs. Unscheduled Property

Learn when high-value machinery should be individually listed and how smaller tools may be insured under a blanket limit with per-item restrictions.

Organize Your Equipment

Contractor and insurance professional reviewing equipment values, limits, and valuation options.

Select Limits With Intention

How Equipment Value May Be Determined

Compare replacement cost, actual cash value, and scheduled-value approaches, and see why current equipment values matter at claim time.

Review Valuation Options

Contractor insurance program showing tools, vehicles, employees, project materials, and liability coverage.

Coordinate Your Contractor Coverage

What May Require Another Policy

See how commercial auto, workers’ compensation, general liability, Builder’s Risk, installation coverage, and equipment breakdown fit alongside inland marine.

Compare Related Coverages

Secured contractor yard with locked equipment, GPS tracking, lighting, and surveillance cameras.

Loss Prevention

Reduce Tool and Equipment Theft

Review practical controls for vehicles, trailers, yards, storage containers, serial numbers, cameras, locks, and GPS tracking.

Review Security Measures

Construction tools, installation materials, and a building project representing different contractor property policies.

Coverage Comparison

Equipment vs. Installation vs. Builder’s Risk

Understand which policy may protect contractor tools, materials awaiting installation, and structures under construction.

Compare the Coverages

Contractor Equipment Questions

Tools and Equipment Insurance FAQs

Review common questions about inland marine coverage, theft, vehicles, rented equipment, jobsites, equipment schedules, and valuation.

What is tools and equipment insurance?

Tools and equipment insurance is a form of inland marine coverage designed to protect eligible contractor property that moves between locations or is used away from a permanent business address.

Why is it called inland marine insurance?

The name comes from insurance developed for property transported inland. Today, inland marine commonly protects mobile property, tools, machinery, specialized equipment, and property in transit or temporarily stored away from a primary location.

Does commercial property insurance cover tools at jobsites?

Commercial property insurance often focuses on property at scheduled business locations. Coverage for tools at jobsites, in vehicles, in transit, or temporarily stored elsewhere may be limited and should be reviewed.

Are tools covered if stolen from a work truck?

They may be covered when the policy includes the tools, location, transit exposure, and applicable theft protection. Commercial auto insurance generally protects the vehicle rather than automatically covering all property inside it.

Does the policy cover rented equipment?

Coverage may be available for rented or leased equipment. The rental agreement, equipment value, rental period, deductible, continuing rental charges, and contractual responsibilities should be reviewed before the equipment is used.

Does it cover employee-owned tools?

Some policies provide limited coverage for eligible employee-owned tools. A separate sublimit, per-item limit, deductible, or documentation requirement may apply.

What is the difference between scheduled and unscheduled equipment?

Scheduled equipment is individually listed with identifying information and a value. Unscheduled equipment is generally covered under a blanket limit, often with a maximum amount for each item.

Does coverage include equipment while being transported?

Inland marine coverage can include eligible equipment in transit, but the vehicle, trailer, securement, territory, and causes of loss remain subject to the policy’s terms.

Does the policy cover normal equipment breakdown?

Normal wear, deterioration, maintenance issues, and internal mechanical or electrical breakdown may be excluded or require separate equipment-breakdown coverage. Accidental external damage may be treated differently.

How should I determine the amount of coverage?

Create an inventory that includes equipment descriptions, serial numbers, purchase dates, ownership, photographs, accessories, and current replacement or actual values. Include the maximum amount of smaller tools exposed at one time.

Is customer property covered?

Property belonging to customers or other parties may require property-of-others, bailee, installation, or another specialized form. The ownership and your responsibility for the property should be disclosed.

What affects the price of tools and equipment coverage?

Pricing may consider equipment type, total value, age, valuation, deductibles, storage, security, transportation, territory, theft exposure, rental equipment, loss history, and contractor operations.

Your Equipment Keeps the Projects Moving

Protect the Investment Behind Your Work

Best Formula Insurance can help contractors review owned equipment, smaller tools, rental agreements, jobsites, transportation, temporary storage, valuation, and available inland marine coverage.