Does Your Contractors Insurance Cover Tools and Equipment?

As a contractor, your tools and equipment are an essential part of your business. They enable you to complete projects efficiently and maintain a high standard of work. However, these essential assets are also at risk of theft, damage and loss, which can significantly impact your operations and finances. Understanding whether your contractor’s insurance covers your tools and equipment is crucial for protecting your investment and ensuring the continuity of your business.

Understanding Tools and Equipment Insurance

Standard contractor insurance policies, such as general liability and commercial property insurance, often do not cover tools and equipment adequately. General liability insurance typically covers third-party property damage and bodily injury, while commercial property insurance usually protects inventory and equipment stored at a specific location. However, these policies may not cover tools and equipment that are in transit or used at various jobsites.

Inland Marine Insurance

To bridge this gap, many contractors opt for a specialized form of insurance known as inland marine insurance. This insurance can cover tools and equipment in transit and when temporarily stored off-site. This type of insurance is beneficial for contractors who frequently move their tools and equipment between jobsites.

Coverage Details

Tools and equipment insurance, a subset of inland marine insurance, can cover a wide range of risks, including theft, damage from accidents and loss due to severe weather events. It can also cover borrowed or rented equipment, helping to protect you even when using tools that are not your own.

Choosing the Right Policy

When selecting a tools and equipment insurance policy, consider factors such as coverage limits, deductibles and the specific risks associated with your work. Some policies offer additional benefits, such as project completion insurance, which can help cover costs if a project is delayed due to equipment issues.

Learn More

Contact Anzar Insurance Group LLC to discuss your insurance portfolio.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.