For contractors and tradespeople, tools are the business. If they are stolen from a job site or a truck, or damaged in an accident, you can lose both the replacement cost and the income from jobs you cannot finish. Tools and equipment insurance protects that gear wherever you take it.
What tools and equipment insurance covers
- Theft from job sites, vehicles or storage.
- Damage from fire, vandalism and certain accidents.
- Portable tools, power tools and specialized equipment.
- Equipment you rent or borrow, if the policy includes it.
This coverage is often called inland marine insurance or contractor’s equipment coverage, because it protects property that moves from place to place.
What it usually does not cover
- Normal wear and tear and gradual deterioration.
- Mechanical breakdown, unless you add equipment breakdown coverage.
- Tools left unattended in unlocked vehicles, depending on policy conditions.
- Vehicles themselves, which need commercial auto insurance.
Who needs it?
Electricians, plumbers, carpenters, HVAC technicians, handymen, landscapers, painters, general contractors and any business that carries valuable gear between locations. A standard commercial property policy may only cover equipment at your main business location.
Tips to protect your tools and keep claims simple
- Keep an up-to-date inventory with serial numbers, photos and receipts.
- Engrave or mark tools and store them in locked boxes or vehicles.
- Choose replacement cost coverage if available.
- Check per-item limits for expensive equipment.
Protect the tools that pay your bills
Add tools and equipment coverage to your contractor insurance with a quick online quote from NEXT Insurance.
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Frequently asked questions
Does general liability cover my tools?
No. General liability covers damage you cause to others, not your own property.
Does homeowners insurance cover business tools?
Usually only up to a small limit, and often not while tools are away from home or used for business.
Is rented equipment covered?
Some policies include rented or borrowed equipment; check the policy terms and limits.
Related business insurance guides
This page is for general information only and is not insurance, legal or tax advice. Requirements, coverage and prices vary by state, industry and insurer. Review policy documents and speak with a licensed agent before buying.