Tools and equipment insurance, often written as inland marine, is property coverage that protects a contractor's tools and mobile equipment against theft and damage as they move between jobsites, vehicles, and storage. It is separate from commercial auto, which covers the vehicle itself, not the tools inside it, and separate from general liability, which does not cover your stolen tools at all. As ContractorsInsured.net (CA Lic #6015321 / TX Lic #3305690), we place tools and equipment cover for California and Texas contractors and issue the certificate right after binding.
No policy yet but a GC wants a COI? We quote general liability the same business day, bind, and issue the certificate right after. Already covered? Send the certificate holder details and endorsement wording and we match it.
What tools and equipment insurance covers
- Theft from a jobsite (when policy terms and conditions are met)
- Theft from storage (yard, lockup, or other listed locations)
- Damage during transport between jobsites
- Offsite coverage for tools that leave your main location
How it is typically structured
Scheduled items: you list specific high-value tools 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, trading premium against out-of-pocket cost.
What it usually does not cover
- General liability is not tool coverage. GL is mainly for third-party injury and 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 and mechanical breakdown are often excluded or limited (varies by form).
- Unclear ownership (employee-owned versus company-owned tools) can create claim friction if not addressed up front.
Who needs tools and equipment coverage
- Roofing contractors (tear-off tools, nailers, compressors, ladders, trailers)
- General contractors (jobsite tools shared across projects)
- Plumbing contractors (service and diagnostic equipment on daily routes)
What affects pricing
- Total values and any high-value scheduled items
- How tools are stored and secured (yard, lockup, vehicles)
- Theft and jobsite exposure in your operating area
- Scheduled versus blanket structure and your deductible
- Claims history
Common contractor pitfalls (and how to avoid them)
Not keeping an inventory, then scrambling after a theft
A current list with values makes claims faster and keeps you from underinsuring. Fix: keep a simple spreadsheet with the item, serial number, purchase date, and replacement cost.
Underinsuring because it probably will not happen
Theft and jobsite loss are common. Insure to real replacement values.
Scheduling the wrong items
Schedule high-value gear; use a blanket limit for the long tail of smaller tools.
Assuming the vehicle policy covers the tools
Commercial auto covers the vehicle, not the tools inside it.
Deductible mismatch
A deductible higher than your typical loss means you self-insure most claims.
Certificates and compliance
When it is requested, a COI proves coverage and limits at a point in time. Provide the certificate holder details and any required wording, and we can issue proof of your inland marine coverage alongside your other policies.