Contractors Tools and Equipment Insurance

The Importance of Contractors Tools and Equipment Insurance

contractors tools and equipment insurance

Many contractors do not understand the importance of contractors tools and equipment insurance. Although job sites should be tidied up and organized at the end of the day, they are often not so secure. An overnight break-in can cause the tools and equipment to disappear. Without the right tools, a project could be delayed or a deadline missed. Moreover, replacing missing tools can be expensive. Contractors tools and equipment insurance can help cover replacement costs. However, the policy does not cover any other damages that may arise due to the property of others.

Coverage for property damage

A contractor’s tools and equipment insurance policy covers damage to the contractor’s own tools, as well as any tools used by employees. These policies are extremely flexible and broad, though some exclude some items. For example, some insurers don’t cover cranes, even small ones, while others will not cover personal tools or clothing of employees. Another difference between insurance policies and homeowners’ insurance policies is the exclusion of certain items. Many policies will cover accidental damage, but you should also know that they don’t cover intentional damage.

Contractor tools and equipment insurance is a form of inland marine insurance that covers high-value movable items. The policy pays for the replacement cost of tools and equipment. This coverage also extends to newly acquired tools. If your equipment is stolen or destroyed, contractor tools and equipment insurance covers the replacement cost. This makes it very cost-effective to use contractors’ tools and equipment. Getting this type of insurance for your tools is a smart decision.

Coverage for items leased, rented or borrowed from others

If you frequently rent or lease tools and equipment, it is essential to ensure they are adequately covered under your policy. Although your homeowner’s insurance might cover these items, you should ask whether it covers anything you borrow, lease, or rent from others. Some policies also include blanket coverage, which covers everything regardless of the frequency of use. For this type of coverage, you need to list the make, model, serial number, and estimated value of each item.

Many contractors loan, lease or borrow tools to complete a job. If you loan or lease tools or equipment to another contractor, you should check the policy to see if the equipment is covered. Some policies cover leased tools and equipment, while others do not. This is especially important if you live in a high-crime area. In addition to owning and leasing tools and equipment, it is important to have insurance that covers your property if it is damaged or stolen.


Contractors tools and equipment insurance provides valuable protection for a contractor’s resources. Power tools and small hand tools are indispensable for contractors. It is crucial to protect these resources from theft, vandalism and loss due to weather conditions. The policy will also cover general wear and tear. Because these resources are portable, the policy will cover any loss or damage exceeding the deductible. Depending on the type of policy, it may also cover the cost of purchasing new tools and equipment.

Contractors often lose and damage tools. Since they can’t be repaired quickly, they often must be rented. This can lead to unexpected expenses if they are damaged or stolen. Contractors tools and equipment insurance can cover these unexpected costs. Moreover, the policy covers tools that are under five years old. So, if an accident does occur and an employee steals them, the insurance will cover the replacement costs. Purchasing contractor tools and equipment insurance will provide a peace of mind.

Benefits of increasing deductibles

Increasing deductibles on contractors’ tools and equipment insurance can result in lower premiums. Many policies are set at a fixed amount, but some insurance companies allow customers to choose the amount of the deductible. In this case, a $1,000 deductible will lower premiums while a $250 deductible will raise premiums. Check your policy carefully and contact an insurance agent if you have questions about how to increase deductibles.

Visit Us Now Also