Tools and Equipment Insurance for Contractors (Inland Marine)
What tools and equipment insurance covers (plain language)
Inland marine is built for contractor property that moves, including tools and many types of mobile equipment, with common focus on theft and damage.
Coverage varies by carrier and policy form, but tools and equipment coverage often addresses:
Common covered situations (examples)
- Theft from a jobsite (when policy terms and conditions are met)
- Theft from storage (yard, lockup, or other listed/allowed locations)
- Damage during transport between jobsites
- Offsite coverage for tools that leave your main location (job-to-job reality)
How it is typically structured
- Scheduled items: You list specific high-value tools/equipment with values (common for larger items).
- Blanket limits: A total limit that can apply across many items (common for lots of smaller tools).
- Deductibles: You choose the amount you pay per claim (tradeoff between premium and out-of-pocket).
Important: This is general information, not legal advice. Coverage depends on policy wording, underwriting approval, endorsements, and how losses occur.
What it usually does not cover (and where contractors get surprised)
Most “surprises” happen when contractors assume another policy covers tools and equipment the way inland marine does.
Common misunderstandings:
- General liability is not tool coverage. GL is mainly for third-party injury and third-party property damage. →
- Commercial auto is not a tool policy. Auto focuses on vehicle liability and vehicle physical damage, not your job tools. →
- Wear and tear / breakdown are often excluded or limited (varies by form).
- Unclear ownership (employee-owned vs company-owned tools) can create claim friction if not addressed up front.
Who needs tools and equipment coverage
If you rely on tools that travel with crews and you cannot afford downtime after theft or damage, inland marine is worth evaluating.
This is common for:
- Roofing contractors (tear-off tools, nailers, compressors, ladders, trailers) →
- General contractors (jobsite tools shared across projects) →
- Plumbing contractors (service tools, inspection equipment, trench/excavation-related gear) →
It is also commonly considered when:
- Your tools live in vans/trucks/trailers overnight
- You have multiple jobs running and tools move daily
You store tools offsite (yard, storage unit, lockup, shop)
What affects pricing (and what underwriters care about)
Cost is driven by total value, how you schedule items, theft exposure, storage/transport patterns, and deductibles.
Key pricing drivers:
- Total limit and values (scheduled + blanket limits)
- Theft frequency exposure (jobsite, vehicles, unsecured storage, overnight habits)
- Where tools are kept (garaging/storage locations and controls)
- Deductible selection (higher deductible often reduces premium, increases your share of a loss)
- Claims history for tool theft/damage (recency and severity matter)
- Equipment type (higher theft-target items and higher values get more scrutiny)
Common contractor pitfalls (and how to avoid them)
Pitfall 1: Not keeping an inventory (then scrambling after a theft)
Fix: Maintain a simple spreadsheet with item, serial number, purchase date, and replacement cost.
Pitfall 2: Underinsuring because “it probably won’t happen”
Pitfall 3: Scheduling the wrong items
Pitfall 4: Assuming the vehicle policy covers the tools
Pitfall 5: Deductible mismatch
Certificates and compliance (COIs and bid packets)
Mini definitions
- COI (Certificate of Insurance): Proof of coverage and limits at a point in time. It does not rewrite the policy.
COI help:
Fast lane routing
- Existing client: Request a COI →
- New to us / shopping coverage: Get a Quote →
Fast quote checklist (tools and equipment / inland marine)
A fast quote comes from clear values, where tools live, and whether you need scheduled items, blanket coverage, and what deductible you can handle.
Have this ready (estimates are fine to start):
Business basics
- State where you operate (initial focus: California and Texas)
- Trade (roofing, GC, plumbing, or closest match)
- Years in business and contact info
Tools and equipment details
- Total replacement value of tools/equipment you want covered
- Top 5–15 high-value items (for scheduling), including approximate values
- Where tools are typically kept:
- Jobsite (daytime)
- Vehicle overnight
- Shop/yard/storage unit (offsite)
- Any trailers used to transport tools (and whether they are locked/stored)
- Preferred deductible (or tell us what “manageable” means for your cash flow)
History
- Any prior theft/damage claims in the last 3–5 years (yes/no and short details)
CTA: Get a Quote →
Related policies contractors commonly pair with tools and equipment coverage
Tools coverage usually sits inside a broader contractor insurance stack that bids and vendor portals expect.
Common pairings:
FAQs about tools and equipment insurance for contractors
What is tools and equipment insurance for contractors?
It is coverage (often written as inland marine) designed to help protect tools and many types of mobile equipment that move between jobsites, vehicles, and storage locations.
Is this the same as inland marine insurance?
Tools and equipment coverage is commonly placed under inland marine forms because the property moves between locations.
Does general liability cover stolen tools?
Does commercial auto cover tools stolen from a van or truck?
Often not the way contractors expect. Auto policies focus on the vehicle; tools are usually a separate tools and equipment conversation unless confirmed otherwise in writing.
Does it cover tools offsite and on jobsites?
What does “scheduled equipment” mean?
What does a blanket limit mean?
How do deductibles work?
A deductible is the amount you pay out of pocket per claim. Higher deductibles can reduce premium but increase your share of a loss.
What information speeds up a quote the most?
Total replacement value, list of high-value items, where tools are stored (especially overnight), and your preferred deductible.
Is tools and equipment coverage required for bids?
Less commonly than GL/WC/Auto, but some projects or risk programs may expect it. Requirements vary by contract and project.
Can I get a COI showing this coverage?
Where do you operate?
Initial markets are California and Texas, serving metros and surrounding areas with accurate disclosures.
