How Does Inland Marine Insurance Protect Contractor Tools?
Why Is Inland Marine Different From Regular Property Coverage?
Business property coverage is often centered around insured premises. Inland marine insurance is designed for certain types of movable property and can extend protection beyond a fixed location.
At the Jobsite
Eligible tools and equipment may be covered while temporarily located at an active construction site, depending on the policy and location requirements.
In Transit
Coverage may apply while eligible property is being transported between the contractor’s office, storage area, suppliers, and project locations.
Away From the Main Premises
Depending on the policy, protection may extend to eligible tools at temporary storage locations or customer premises rather than only at the contractor’s primary business address.
What Types of Tools and Equipment May Be Considered?
Contractors can have a wide range of movable property, from everyday hand tools to larger specialty equipment. The policy should be reviewed to determine what property is eligible and how it needs to be listed or valued.
Hand & Power Tools
Drills, saws, nail guns, grinders, testing devices, and other portable tools may be eligible depending on the coverage form.
Larger Equipment
Generators, compressors, welders, compact equipment, and other contractor equipment may require their own limits or scheduling.
Rented or Leased Property
Coverage for equipment rented or leased from others may be available but should not be assumed without reviewing the policy.
Materials & Supplies
Certain materials or property intended for installation may be treated differently from contractor tools and equipment, depending on the insurance program.
What Should Contractors Review Before Choosing a Limit?
Think about the maximum amount of equipment your business could have away from the shop at one time and how that property moves during normal operations.
Total Tool Value
Add up the replacement value of the tools and equipment that could be exposed to the same loss.
Where Property Travels
Review whether equipment stays at jobsites overnight, travels in trucks or trailers, or is stored at temporary locations.
Theft Conditions
Ask whether theft from vehicles, trailers, jobsites, or storage locations is subject to special conditions, exclusions, or sublimits.
Scheduled Equipment
Higher-value equipment may need to be individually listed with identifying information and a specific insured value.
Are Your Contractor Tools Covered Away From the Shop?
Best Formula Insurance can help contractors review tools and equipment coverage, inland marine options, mobile-property limits, scheduled equipment, deductibles, and other coverage considerations.