Tools and Equipment Insurance

What is tools and equipment insurance?

Equipment insurance pays to repair or replace a contractor's moveable tools and equipment if lost, damaged, or stolen. It's also called contractors equipment insurance and is a good fit for tradespeople who commute to job sites.

Protect your tools and equipment wherever you go with inland marine insurance on a general liability or business owners policy (BOP).

Who needs tools and equipment insurance?

Contractors who rely on tools and equipment for work need business equipment insurance to minimize financial losses. It's a smart choice for companies that travel with tools to job sites or store tools away from their business premises.

Without coverage, small businesses can have a hard time recovering from stolen machines, vandalized materials, and other mishaps. Tools and equipment insurance can decrease downtime by helping repair and replace the tools you need for work.

Carpenters, construction companies, and landscapers are some examples of professions that should consider equipment insurance.

If you're not sure if this coverage is right for you, speak with an insurance expert to learn more.

What does tools and equipment insurance cover?

Contractors equipment insurance covers a variety of tools that you regularly take to jobs, store off-site, or keep in your vehicle. For example, it can protect lawnmowers, chainsaws, hand tools, laptop computers, and more.

This type of equipment insurance coverage can help with a range of events, such as:


Tools and equipment insurance pays to replace covered items that are stolen when traveling or stored away from your business.


If someone intentionally vandalizes your tools and equipment, this coverage could help pay to restore them to working condition.

Accidental damage

Business equipment insurance can help when drops, impacts, and other unexpected accidents damage your tools. That said, it doesn't cover normal wear and tear on older items.

Rented tools and equipment

Your insurance policy might protect equipment that you rent for a project. Read your policy or speak with an agent to learn what's included.

What insurance for tools and equipment doesn’t cover

Common exclusions for tools and equipment insurance include:

Normal wear and tear

Normal wear and tear from regular use isn't covered. In many cases, insurers will set limits on how old tools can be for coverage to apply.

Negligent operator error

Commercial equipment coverage protects against some mistakes, but there might be exceptions for certain types of operator error. For example, if one of your workers breaks a weedwhacker by ignoring the manufacturer's instructions and being negligent, an insurance company might not cover the replacement cost.

Natural disasters

Damage from earthquakes, hurricanes, and other natural disasters probably won't be covered by your tools and equipment insurance. In some cases, there are endorsements available for these events.

Business vehicles

You'll need commercial auto insurance to cover permanently attached equipment in your business vehicles, such as a vacuum system in a carpet cleaning van or a built-in toolbox in a work truck.

How much does tools and equipment insurance cost?

Your equipment insurance cost depends on several factors, such as your industry, location, and the value of your tools. Your coverage amount, limits, and deductibles can also affect your premium.

Keep in mind that more expensive your items will typically cost more to insure. Get a customized quote to learn your tools and equipment insurance rate.

How to get tools and equipment insurance

You can get tools and equipment coverage on a general liability policy with inland marine insurance, also known as equipment floater insurance. It’s also available on a business owners policy. The type of policy you need depends on:

  • Tool type and use
  • Estimated repair and replacement costs
  • Whether you travel with your tools
  • Where you store your tools
  • What other protections you need for your business

To get accurate equipment coverage, be prepared to provide details such as make, model, and serial number. Once you have an idea of what you want covered and the risks you're exposed to, you can start a quote online or speak to an insurance agent about your needs.

Carpenter with business insurance measures a piece of wood in a workshop

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