Contractors tools insurance
A gang box or a truck full of tools can be worth more than a used skid steer, and it can be emptied in five minutes. A tools floater covers that property wherever you take it.
What a tools floater covers
- Hand tools, power tools, cordless tools and batteries
- Ladders, levels, laser and survey instruments
- Small generators, compressors and saws
- Tools in a locked vehicle, gang box or job-site trailer
- Employee-owned tools, when that extension is added
Apply online
The online application asks the questions underwriters need for this coverage. Business owners fill it out directly, and insurance agents can complete it for a client or send it to them. Insurance agents can also request an appointment.
One equipment floater. Four coverages. Pick any combination.
You don't need four policies. Each of these is an option on the same equipment floater, and the application asks which ones you want.
- Equipment you ownScheduled machines plus a blanket limit
- Equipment rented FROM othersRental and leased machines in your care
- Equipment rented TO othersYour machines while someone else has them
- Tools and small equipmentYou are here
Theft from vehicles
Most tool losses are thefts from trucks and vans. Many policies only pay for theft from a vehicle when there are visible signs of forced entry, and some exclude tools left in an unattended vehicle overnight. Read that condition before you rely on the policy.
Tools under the contractors equipment policy
Tools are usually a line on the contractors equipment policy, with a blanket limit and a per-item maximum, often $1,500 to $5,000 per item. Expensive single items, like a robotic total station, should be scheduled separately.
Common tool claim problems to ask about
Forced entry wording
If the policy requires visible signs of forced entry, a theft from a truck with a slim-jimmed lock or a door left open may not be paid. Ask whether the condition applies and how the carrier defines it.
Overnight unattended vehicles
Some forms exclude tools left in a vehicle overnight unless it is inside a locked building or fenced yard. If your crews take trucks home, ask whether that is covered.
Mysterious disappearance
A tool that is simply missing, with no evidence of theft, is often excluded as mysterious disappearance or inventory shortage. Sign-out logs and photo inventories help separate a theft from a misplaced tool.
Worn and broken tools
Wear and tear, gradual deterioration and a tool breaking during normal use are usually excluded. The floater is for theft and accidental physical loss, not replacing worn-out tools.
What to do after a tool theft
- Leave the truck or gang box as it is and take photos of the damage, the broken lock or window and the empty space.
- File a police report right away and give the officer serial numbers for the stolen tools.
- Make a list of what was taken with brand, model, serial number and approximate age, using your photo inventory or receipts.
- Report the claim with the police report number, the list and the photos.
- Check pawn shops and local resale listings for your serial numbers in the following weeks and tell police if any turn up.
Common questions
Does my homeowners policy cover my work tools?
Usually only a small amount, and often nothing at all once the tools are used for business or kept away from the home. A business tools floater is the right fit.
Are my employees' tools covered?
Only if the policy includes employee tools. It is a common add-on for trades where workers bring their own tools, such as carpentry and mechanical work.
Do I need serial numbers for every tool?
Not for blanket coverage. Keeping a photo inventory with serial numbers still helps a theft claim and helps police recover stolen tools.
Are cordless batteries and chargers covered with the tools?
Often, depending on the policy, when they are lost in the same covered event as the tools, such as a theft from the truck. A battery that simply stops holding a charge is wear and tear and is not covered.
Need a contractor license bond?
Many states and cities require a contractor license bond before you can get licensed or pull permits. Find the bond your state requires.
Ready for a quote?
One online application. Owners and agents both welcome.
Start the contractors equipment applicationRelated coverage
Owned Equipment
Scheduled or blanket coverage for the machines and attachments you own or finance.
Coverage & applicationEquipment Floater
Covers mobile equipment wherever it goes: the yard, the trailer, and every job site in between.
Coverage & applicationInstallation Floater
Covers materials and equipment you are installing until the owner accepts the job.
Coverage & quoteWhat Affects the Cost
The rating factors that move a contractors equipment premium up or down.
Coverage & application