Business & Contractors Equipment Insurance

As a business or contractor that relies on tools and equipment to get the job done, you need to be sure you can count on having these in proper working order. In case of theft, damage, or loss to your tools and equipment, your business could lose valuable time and money without the proper coverage. That's why having business and contractors tools and equipment insurance is critical.

Fortunately, a local independent insurance agent can help you find the right business and contractors equipment insurance. They'll get you matched to the ideal amount of coverage for your small tools and equipment. But first, here's a breakdown of business and contractors tools and equipment insurance, what it covers, and who needs it.

What Is Business & Contractors Equipment Insurance?

Also known as "contractor's tools and equipment insurance" or simply "tool insurance," this coverage is a type of inland marine insurance designed to protect small tools and equipment used by various businesses and contractors. 

You might also find this coverage sold as "equipment floater insurance." Many types of professionals rely on this coverage to protect the movable tools and equipment they take with them between jobs and projects against losses due to theft, damage, misplacement, and other threats.

Who Needs Business & Contractors Tools and Equipment Insurance?

Any business or professional that transports tools and equipment with them from job site to job site can benefit from having business and contractors tools and equipment insurance. Some of the most common industries that rely on this coverage include:

If you're unsure whether your business could benefit from contractor tools and equipment insurance, work together with an independent insurance agent to find the coverage you need.

What Does Business & Contractors Tools and Equipment Insurance Cover?

Business and contractors tools and equipment coverage can usually be added to a business owners policy or commercial property insurance. Coverage is designed to protect tools and equipment that are less than five years old and valued at less than $10,000. 

Contractors tools and equipment insurance can cover the following:

• Theft and vandalism of covered tools and equipment
• Damaged or destroyed equipment due to covered causes like fire damage
• Theft, vandalism, damage, and destruction to tools and equipment while in transit
• Theft, vandalism, damage, and destruction to leased or rented tools and equipment*

*Rented or leased tools and equipment are only covered under certain policies. If you rent or lease your business or contractors tools or equipment, be sure to look for a policy that includes this coverage.

What's Not Covered by Business & Contractors Tools and Equipment Insurance?

Business and contractors tools and equipment insurance doesn't cover normal wear and tear damage or destruction to your commercial property. It also doesn't apply to company vehicles, which would be covered under a commercial auto insurance policy, or large equipment and machinery like AC units and boilers, which would be covered by equipment breakdown insurance. These additional types of coverage can be found in most standard business insurance policies. 

Further, keep in mind that contractors' tools and equipment insurance usually won't cover property valued over $10,000 or older than five years of age.

How Much Does Business & Contractors Equipment Insurance Cost?

Business and contractors tools and equipment insurance tends to be affordable for most businesses, considering the coverage applies to inexpensive commercial property. Many small businesses pay only $14 monthly, on average, for this coverage. However, your business's rates may vary based on a number of factors, such as:

• Industry
• Total value of covered tools and equipment
• Location
• Amount of coverage needed
• Frequency in which tools and equipment are moved
• Types of coverage chosen

Working together with an independent insurance agent is a great way to get set up with cheap business and contractors tools and equipment insurance near you.

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How Independent Insurance Agents Can Help

Independent insurance agents have access to multiple business insurance companies and can compare policy options and quotes for you. They'll present you with only the results that offer the best blend of coverage and cost. And down the road, your agent will still be there to help you file business insurance claims or update your coverage as necessary.