Tools & Equipment Insurance

One of the biggest risks contractors face is theft of their tools, equipment, or machinery. Don’t leave the tools and equipment you need defenseless to face that risk without adequate protection. Contractors can safeguard themselves from financial loss by protecting the smaller assets that help get the job done with the right insurance coverage.

You should never assume that tools and equipment coverage is included in your general or auto liability policy, unless specifically packaged together. Even if your tools are in your vehicle, there is no automatic coverage under an auto policy.

There are two different kinds of coverage for tools and equipment: Replacement Cost and Actual Cash Value. Replacement Cost means you get new equipment for old. Actual Cash Value takes the value of the tools and factors in the depreciation.

There is also something called "Co-insurance". This could save you a lot of money, because the policy can be rated on 80% of the equipment value and still be covered for 100% (all things considered).

Tools & Equipment Insurance

Tools and equipment insurance is designed to protect your high-value movable property. Tools and equipment coverage, also known as inland marine insurance, protects your hard working assets from all-too-common risks, like theft and damage, as you transport them to and from your worksite.

As a contractor or construction professional, you regularly transport the tools, equipment, and supplies you need to get the job done. While your valuable business assets are in motion, tools and equipment insurance ensures their replacement should an accident, theft, or loss happen along the way. It can also cover tools that your construction or contracting crew takes with them when they perform a job.

What Does Tools & Equipment Insurance Cover?

Tools and equipment insurance commonly includes coverage for the following types of property:

  • Property in transit, such as contractor's tools and supplies
  • Mobile equipment, such as forklifts, dozers, track hoes, maintainers, loaders
  • Computer equipment and data, such as accounting software, lead-tracking data, policies, procedures, and other electronic assets

From the smallest hand tools to larger equipment such as welders, nail guns, generators and other high-value items, replacement costs can add up fast if your tools are stolen or damaged. With tools and equipment coverage, your investment in these assets is protected.

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