Tools and Equipment Coverage

PROTECTION THAT TRAVELS FROM JOB TO JOB

Protect the Tools & Equipment Your Contracting Business Depends On

Your tools do not stay in one building. They travel in trucks and trailers, sit at jobsites, move between projects, and sometimes include expensive machinery. Contractors Tools & Equipment Insurance can help protect qualifying property wherever the work takes it.

A commercial property policy may not follow your equipment everywhere. Inland marine coverage is specifically designed for eligible tools, machinery, materials, and other business property that moves between locations or is used away from your permanent business address. :contentReference[oaicite:0]{index=0}

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Equipment Learning Center

Contractor loading tools and equipment for transportation to a jobsite.

FAQs

INLAND MARINE COVERAGE FOR CONTRACTORS

Your Equipment Moves. Your Coverage Should Be Designed for That.

Contractors may move tools and machinery between their office, storage yard, work trucks, trailers, customer properties, and active jobsites. Inland marine coverage can help protect qualifying equipment while it is away from a permanent business location. :contentReference[oaicite:1]{index=1}

MOBILE PROPERTY

Coverage at Jobsites

May help protect eligible tools and equipment temporarily located at residential, commercial, industrial, or other qualifying construction sites.

BETWEEN PROJECTS

Coverage in Transit

Eligible equipment may be protected while traveling between your business, storage yard, rental location, customer property, and active jobsites.

TEMPORARY LOCATIONS

Storage Away From Your Office

Coverage may apply when qualifying equipment is temporarily stored in a yard, warehouse, secured container, job trailer, or another approved location.

ONE OF THE MOST IMPORTANT DISTINCTIONS FOR CONTRACTORS

Your Work Truck and the Tools Inside It Are Different Property

Commercial Auto Insurance generally focuses on the insured vehicle. It should not automatically be assumed to cover the tools, machinery, or equipment being transported inside the vehicle or trailer. :contentReference[oaicite:2]{index=2}

COMMERCIAL AUTO

Protects the Vehicle

Physical damage coverage may protect the qualifying pickup, service van, utility truck, or other insured business vehicle after a covered loss.

INLAND MARINE

Protects Eligible Mobile Equipment

Tools and equipment coverage may protect qualifying drills, saws, generators, machinery, testing equipment, attachments, and other insured property being transported for work.

Heavy contractor machinery and equipment at a worksite.

THE EQUIPMENT DOES NOT ALWAYS HAVE TO BE YOURS

Owned, Rented & Newly Acquired Equipment

Contractors may depend on equipment they own as well as machinery rented or leased for specific projects. Coverage options can vary based on ownership, value, rental agreements, and policy terms. :contentReference[oaicite:3]{index=3}

Owned Equipment

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

Rented or Leased Equipment

Coverage may be available for qualifying equipment temporarily rented or leased for a job, subject to the rental agreement and policy limits.

Newly Acquired Equipment

Some policies may provide temporary protection for qualifying newly acquired equipment, but reporting requirements and time limits can apply.

HOW MUCH WOULD IT COST TO REPLACE YOUR EQUIPMENT TODAY?

One Theft Can Involve Thousands of Dollars in Tools

A contractor may carry drills, saws, testing equipment, generators, compressors, ladders, specialty tools, and machinery on the same project. Reviewing the total value exposed at one time is an important part of selecting coverage.

Request an Equipment Quote
Call (888) 242-9922

FROM SMALL HAND TOOLS TO HEAVY MACHINERY

What Types of Contractor Equipment Can Be Insured?

The appropriate coverage depends on the contractor’s trade and the actual equipment used. Policies can be structured around smaller tools, individually scheduled machinery, blanket limits, rental equipment, and other eligible mobile property. :contentReference[oaicite:4]{index=4}

Hand & Power Tools

Drills, saws, nail guns, grinders, welders, testing equipment, compressors, and specialty trade tools.

Generators & Compressors

Portable power equipment, pumps, lighting systems, compressors, and other jobsite support equipment.

Skid Steers & Loaders

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

Excavators & Backhoes

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

Lifts & Access Equipment

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

Surveying & Specialty Equipment

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

THE LOCATION OF THE PROPERTY MATTERS

Coverage Can Follow Equipment Through the Workday

A contractor’s equipment can move through several locations in a single day. Coverage may differ by location, security, vehicle, storage conditions, and policy terms. :contentReference[oaicite:5]{index=5}

At the Jobsite

Eligible property being used or temporarily stored at a customer’s construction or service location.

In a Truck or Trailer

Tools carried in pickups, vans, utility trucks, enclosed trailers, and other qualifying vehicles may require specific inland marine protection.

In Transit

Eligible machinery and equipment moving between projects, storage locations, rental facilities, and the contractor’s business location.

Temporary Storage

Tools or machinery stored in qualifying containers, warehouses, secured yards, job trailers, or temporary locations.

WHEN SOMETHING GOES WRONG

Examples of Losses a Contractors Equipment Policy May Address

Actual coverage depends on the equipment, cause of loss, location, security, deductible, valuation, policy limits, exclusions, and other terms.

Jobsite Theft

Qualifying tools, generators, or machinery are stolen from a construction project during non-working hours.

Truck or Trailer Break-In

A work vehicle or trailer is forcibly entered and eligible insured tools are stolen.

Equipment Overturn

A qualifying skid steer, loader, lift, or other insured machine overturns or suffers accidental external damage.

Transit Damage

Eligible equipment is damaged during transportation, loading, or unloading, subject to the applicable policy terms. :contentReference[oaicite:6]{index=6}

NOT EVERY TOOL NEEDS TO BE INSURED THE SAME WAY

Scheduled Equipment vs. Unscheduled Tools

Larger pieces of machinery may be individually scheduled, while smaller tools may be insured under a blanket or unscheduled tools limit. Per-item limits and valuation provisions can be especially important.

SCHEDULED EQUIPMENT

Individually Listed

Higher-value machinery is typically listed with identifying information such as make, model, serial number, year, and insured value.

UNSCHEDULED PROPERTY

Blanket Protection for Smaller Tools

Smaller hand and power tools may be insured within an overall blanket limit, often subject to a maximum amount for any one item. :contentReference[oaicite:7]{index=7}

PROTECT THE EQUIPMENT BEFORE A CLAIM

Good Security Can Protect Your Tools and Improve Claim Documentation

Equipment records and theft-prevention controls may help reduce losses and make it easier to identify property after a theft.

Record Serial Numbers

Photograph Equipment

Use GPS Tracking

Secure Trailers

Use Locks & Immobilizers

Improve Yard Lighting

Control Key Access

Keep Purchase Records

CONTRACTOR EQUIPMENT LEARNING CENTER

Know How Your Tools Are Protected Before the Next Job

Explore practical guides about mobile property coverage, equipment schedules, values, and protecting tools that travel between trucks, trailers, jobsites, and temporary storage locations.

Contractor equipment representing how inland marine insurance follows tools between jobsites.

COVERAGE BASICS

How Does Inland Marine Insurance Protect Contractor Tools?

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

Explore How Coverage Works

Contractor tools and equipment organized for an insurance equipment schedule.

EQUIPMENT INVENTORY

How Should Contractors Keep Track of Tools & Equipment?

Learn how equipment descriptions, serial numbers, photographs, values, attachments, and purchase records can create a stronger equipment inventory.

Build a Better Inventory

BOUGHT A NEW MACHINE OR STARTED RENTING EQUIPMENT?

Do Not Assume New Equipment Is Automatically Protected

New purchases, rentals, higher equipment values, additional trailers, or changes in where equipment is stored can affect the coverage your contracting business needs.

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CONTRACTOR EQUIPMENT QUESTIONS

Tools & Equipment Insurance FAQs for Contractors

Clear answers about inland marine coverage, jobsite theft, equipment in trucks, rented machinery, scheduled equipment, smaller tools, and other common contractor exposures.

What is Contractors Tools & Equipment Insurance?

It is generally a form of inland marine insurance designed to protect eligible mobile tools, machinery, and equipment used away from a permanent business location.

Why is contractor equipment coverage called Inland Marine Insurance?

The name developed from insurance for property transported inland. Today, inland marine commonly includes specialized coverage for mobile property, tools, machinery, equipment in transit, and property temporarily located away from a primary business location.

Are my tools covered if they are stolen from my work truck?

They may be covered when the applicable inland marine policy includes the tools, location, theft exposure, and policy conditions. Commercial Auto Insurance should not automatically be assumed to cover property inside the vehicle.

Are tools covered if they are stolen from a jobsite?

Qualifying jobsite theft may be covered depending on the policy. Security requirements, signs of forced entry, unattended-property provisions, deductibles, limits, and other conditions may apply.

Does Commercial Property Insurance cover my tools at jobsites?

Commercial Property Insurance often focuses on property at insured business locations. Coverage for equipment at jobsites, inside vehicles, in transit, or temporarily stored elsewhere may be limited and should be reviewed separately.

Can rented equipment be covered?

Coverage may be available for qualifying rented or leased equipment. Rental agreements, equipment value, rental periods, deductibles, continuing rental charges, and contractual obligations should be reviewed.

Can employee-owned tools be covered?

Some policies may provide limited protection for qualifying employee-owned tools. Separate sublimits, documentation requirements, deductibles, and maximum per-item limits may apply.

What is scheduled equipment?

Scheduled equipment is individually listed on the policy with identifying information and an insured value. This structure is often used for higher-value machinery.

What is unscheduled tools coverage?

Unscheduled or blanket tools coverage generally provides an overall limit for smaller tools rather than listing each item individually. A maximum amount per item may apply.

Is equipment covered while being transported?

Eligible equipment may be covered in transit, depending on the policy. Vehicle type, trailer use, securement, territory, loading and unloading, and cause of loss can affect coverage.

Does equipment insurance cover normal mechanical breakdown?

Normal wear, deterioration, maintenance issues, and internal mechanical or electrical breakdown may be excluded or require other coverage. Accidental external damage may be treated differently depending on the policy. :contentReference[oaicite:8]{index=8}

How much tools and equipment coverage should a contractor carry?

The amount should reflect the contractor’s actual equipment exposure, including individually scheduled machinery and the maximum value of smaller tools that could be exposed to one loss. Values and equipment inventories should be reviewed periodically.

Does the policy cover attachments?

Buckets, forks, breakers, blades, GPS units, and other attachments or accessories may need to be separately scheduled or included within the appropriate insured value.

What affects the cost of Contractors Tools & Equipment Insurance?

Pricing may depend on equipment type, total value, machinery age, valuation method, deductibles, storage, security, transportation, theft exposure, rental equipment, claims history, territory, and the contractor’s operations. :contentReference[oaicite:9]{index=9}

THE TOOLS KEEP THE PROJECT MOVING

Protect the Equipment Behind Your Contracting Business

Best Formula Insurance can help contractors explore inland marine coverage for qualifying hand tools, power tools, machinery, heavy equipment, rented equipment, property in transit, jobsites, trailers, and temporary storage locations.