The basics

Do you work in the construction business?

You want to protect your assets. In case your tools and equipment are lost, stolen, or damaged, a contractor tools and equipment insurance policy has you covered. Construction-related tools and equipment can be quite costly, making it a good idea for you to get insurance coverage to protect you against the what if. Without one, you will have to pay out of pocket.

What started out as a policy protecting cargo while traveling through the sea, inland marine — often referred to as tools & equipment — has developed into a much more robust coverage. Also called inland marine insurance, a contractor tools and equipment insurance policy is specifically for contractors who move a lot or work at multiple locations.

You know when you’re at a home improvement store and you’re checking out, and the cash-register-from-the-future asks you if you’d like to add a protection plan? Well, let’s say you didn’t. And your super expensive equipment breaks down. What to do? Pay for it out-of-pocket? No way! Make sure you have some tools & equipment coverage and let insurance pay for the damages. This policy starts out from only $15/month.

What is contractor tools and equipment insurance?

As a professional contractor, you bring your tools and equipment to lots of different work sites. What if something were to happen while transporting or using your tools and equipment at your current place of work? This type of small business insurance policy will help pay to repair or replace your tools and equipment if you lose them, someone steals them, or they are somehow damaged and become unusable.

The coverage

What does contractor tools and equipment insurance cover?

A contractor tools and equipment insurance policy protects your small business. It covers both small hand tools and large equipment. You can choose unscheduled coverage for your items that are valued at less than $1000, scheduled coverage for your items that are worth more than $1000, or a combination of both types of coverage.

This type of small business insurance policy usually offers coverage protection for tools and equipment that are less than five years old, small tools, and mobile equipment. The value is based on the age of the tools and equipment, meaning if they are less than five years old you would receive replacement costs and if they are five years or older you would receive the actual cash value.

Coverage Highlights

Such as computers, cameras, light kits, and medical equipment.
Mobile equipment
Such as bulldozers, trailers, and food trucks.
Property in transit
Such as supplies, inventory, and tools.

A contractor’s tools and equipment policy can also cover:

  • Hand tools – wrenches, hammers, saws, etc.
  • Power tools – nail guns, drills, etc.
  • Heavy equipment – excavators, backhoes, bulldozers, etc.

Coverage example 1:

Your toolbox is stolen out of your client’s backyard while you are working. A contractor’s tools and equipment insurance policy will pay to replace your stolen tools so you do not have to be out of pocket.

Coverage example 2:

Your tools are damaged in a workplace accident. This type of insurance policy will pay to either repair or replace your damaged tools.

What is excluded?

The following list includes some of the more common exclusions:

  • Wear and tear
  • Corrosion
  • Dishonest acts
  • Pollution damage
  • Changes in temperature or humidity
  • Loss of documents
  • Strikes
  • Government seizure
  • Nuclear hazard
  • War

Who needs contractor tools and equipment insurance?

Are you a professional who brings their own tools and/or equipment to different job locations? Then you need tools and equipment insurance.

Let’s say your primary business location is a workshop. Or a studio. A garage. Your house. Whatever! If you have business property insurance, it will protect your goods while you’re at the physical location. However, once you’re more than 500 feet off premises, the coverage ends. That’s where tools & equipment insurance kicks in. It fills the gap! And, quite affordably — at that.

If you tend to take your work equipment with you to other locations, you’ll definitely want to consider this type of insurance. It’s kind of hard to lay tile for a new house from your shop. And it’s really hard to do a photoshoot on the river from your studio. Catch our drift?

We get it, you go places! This tools & equipment insurance moves with you. Not only that, this coverage is also great for those who store their equipment at temporary locations or storage units.

If you have goods you want to protect, you’ll want this coverage. If your business items are damaged, stolen, or lost, tools & equipment will take care of the damages.

Tools & equipment coverage is perfect for:


    Keep receipts regarding the cost of your tools and equipment in case you need to file a claim
  • Take photos of your tools and equipment
  • You may be able to broaden your tool and equipment coverage to cover things like a loss of income
  • Read your insurance policy before purchasing


Does a tools and equipment insurance policy cover borrowed, leased, or rented tools or equipment?
Yes, it can be used to cover tools you use and do not own. Just be sure this inclusion is added to your policy.

Are there certain tools and equipment that are not insurable?
Yes, this type of insurance policy does not cover aircraft, watercraft, waterborne property, contraband, vehicles designed for highway use, and underground mining operations.

The cost

How much does contractor tools and equipment insurance cost?

The median cost contracting professionals pay for contractor tools and equipment insurance could cost as little as $20 a month.

What factors play a part in how much you will need to pay?

  • The type of construction or contracting services you offer
  • The type of business equipment, tools, and property you use
  • The location in which you offer your services
  • The number of employees you have
  • The number of years you have been in business
  • Your annual revenue
  • Loss history

The best way to find out for sure is to get a free estimate. We work with top providers to get you the best coverage at the right price. Completing a quote only takes three minutes!

Get a free quote!

Ready to safeguard your professional business against the unknown? Without your tools and equipment, you cannot perform your job. We invite you to fill out this form to find out how much you will need to pay for this essential coverage so you can have peace of mind in case something were to happen to your tools and/or equipment.