As a contractor, daily life on the job involves playing with lots of fun tools and equipment, from hammers to backhoes and more. With this comes many different risks and opportunities for error while working with potentially dangerous equipment.
One false move could result in disaster - and a hefty bill to repair or replace damaged or destroyed equipment.
That's why it's important to know about the different types of contractor tools and equipment insurance available. Our independent insurance agents are here to eliminate the hassle of searching on your own by walking you through a handpicked selection of top policies for you.
What Is Contractor Tools and Equipment Insurance?
In summary, contractor tools and equipment insurance is designed to protect all the tools and equipment of your trade from theft, vandalism and physical damage (not including general wear and tear).
The coverage is also designed to protect tools and equipment stored in multiple places, as is typical of the contracting industry.
When Would I Use Contractor Tools and Equipment Insurance Coverage?
Coverage mainly comes into play when you have a loss or claim that exceeds your policy's deductible. If a toolbox is stolen, your business will pay out of pocket up to the amount of the deductible, and then insurance will cover the rest of the expense.
The same process applies if there is a work-related accident that damages or destroys your tools or equipment.
What Qualifies as Contractor Tools and Equipment?
- Hand tools: Hammers, wire strippers, tape measures, screwdrivers, etc.
- High-end power tools: Nail guns, welders, electric drills, etc.
- Small vehicles: Forklifts, tractors, etc.
- Heavy equipment: Backhoes, excavators, skid loaders, bulldozers, cement mixers, etc.
- Gear: Uniforms and other clothing used for jobs - goggles, hard hats, gloves, etc.
- Other equipment: Workbenches, sawhorses, etc.
Is Contractor Tools and Equipment Insurance Mandatory?
Not necessarily. Most contractors are required to carry general liability insurance (which protects third parties from property damage or injury), but extra coverage is typically optional. However, coverage is usually mandatory when renting or leasing equipment.
It's also a good idea to have it, because of the extreme expense of much of the tools and equipment used for contracting work, which could mean financial ruin to replace, without coverage.
Why Do I Need Contractor Tools and Equipment Insurance?
Well, mainly because of the nature of the contracting business - jobs involve high-risk activities and the use of costly tools and equipment. Projects could easily result in damage to your tools or equipment, or they could be the target of theft or vandalism.
Having coverage could mean the difference between your business being able to continue smooth operation and having to close its doors during unforeseen maintenance, or permanently, due to financial loss.
What Does Contractor Tools and Equipment Insurance Cover?
A contractor tools and equipment policy protects the tools and equipment used by your contractors on the job from everyday damage by a covered accident.
Some key components of coverage include:
- Damaged/destroyed: Covers replacement of tools and equipment that are damaged or destroyed by work incidents.
- Rented/Leased equipment: Covers costs of rented and leased equipment needed while awaiting repairs on your own. Also protects the rented and leased equipment while in use by your business, including while it is in transit.
- Newly acquired: Covers incidents involving new tools and equipment within a specified time frame, including repairs and replacement.
How Much Does Contractor Tools and Equipment Insurance Cost?
The cost of your policy will depend on a couple of factors, including the amount of tools and equipment used, and the value of each item.
For a smaller business using only inexpensive tools, a policy could be as low as $250/year, whereas a larger business with lots of expensive equipment could require a policy with an annual premium $1,000 or more.
What's So Great About an Independent Agent?
Insurance policies can be incredibly complex, and searching through available options can be a drag - it's tedious, time-consuming and downright boring work. An independent agent's role is to simplify the process.
Independent agents are there to make sure you get the absolute best deal, and the one that meets your unique needs. They shop and compare insurance quotes for you, and they'll break down all the jargon so that you understand exactly what you're getting.
Finding/Comparing Contractor Tools and Equipment Insurance Quotes
Our knowledgeable independent agents will review your needs and help you evaluate which type of contractor tools and equipment insurance makes the most sense for your business.
They'll also compare policies and quotes from multiple insurance companies to make sure you have the best protection out there. They'll hook you up - in a comprehensive and affordable way.