How Should Contractors Keep Track of Tools & Equipment?
What Information Should Contractors Record?
The goal is to create enough detail to identify the equipment, estimate its value, and distinguish one item from another if records are needed later.
Description & Identification
Record the type of equipment, manufacturer, model, serial number, asset number, or other identifying information when available.
Photographs
Take clear photographs of the full item, identifying labels, serial-number plates, and any important accessories or modifications.
Purchase & Value Information
Keep purchase dates, invoices, receipts, original cost, and an updated estimate of current replacement value when practical.
Do Not Forget Attachments and Accessories
The value of contractor equipment may include more than the main machine or tool. Accessories, attachments, added components, and specialty parts can materially increase the total value.
Attachments
Buckets, blades, specialty heads, accessories, batteries, chargers, and other attachments may add significant value.
Storage Location
Note whether property is normally kept at the shop, in a truck, in a trailer, at a jobsite, or in temporary storage.
Ownership Status
Identify whether the equipment is owned, financed, leased, rented, or borrowed so coverage can be reviewed appropriately.
Digital Records
Keep a digital copy of the inventory and supporting documents somewhere that remains accessible if the physical location is damaged or burglarized.
An Old Inventory Can Create the Same Problem as No Inventory
Contractors regularly buy new tools, replace old equipment, add attachments, and move property between locations. The inventory should change with the business.
Add New Purchases
Record major new tools and equipment soon after purchase instead of waiting until the next insurance renewal.
Remove Sold Equipment
Update the list when property is sold, traded, returned, or permanently taken out of service.
Review Values
Equipment prices can change, so periodically compare older values with current replacement costs and policy valuation provisions.
Compare With Your Policy
Use the inventory to compare actual equipment values with blanket limits, scheduled amounts, deductibles, and other policy provisions.
Does Your Insurance Limit Match Your Current Equipment Inventory?
Best Formula Insurance can help contractors review tools and equipment coverage, inland marine options, scheduled equipment, blanket limits, deductibles, and mobile-property exposures.