Contractors Equipment Insurance: Protecting Tools & Equipment

Pneumatic hammer and drill at a construction site.From toolbelts to service trucks, vans, and flatbeds, your construction company and its contractors carry a lot of tools and equipment. From basic hand tools and equipment to larger one and two-man power and pneumatic tools and equipment, the cost of these individual tools can quickly add up. And while the loss of these tools from causes such as theft, vandalism, or fire while in their workshop might be covered, what happens once they are off your business’s property while on transit or at a worksite? Today we look at the types of contractors equipment insurance available and how they work.

Inland Marine Coverage or Tool “Floaters”

While it might seem like a strange name, inland marine insurance takes its title from ocean marine insurance. Just like ocean marine insurance covers the contents of a ship while in transit or at a location, so too does inland marine insurance protect the tools of contracts while in transit in a vehicle or at a worksite. Commonly known as “floater” policies or inland marine floater, this insurance covers tools and equipment in two different ways depending on their value.

Hand Tools and Equipment

Whether tools and equipment fall into this category or the next is largely based on value. Depending on the policy, tools with a value of under $500 to $1000 are in a general pool up to a maximum payout. This generally includes individual contractor equipment and miscellaneous lower-cost tools.

High-Value Equipment

Larger equipment, such as high-end power tools, pneumatic nail guns, welders, or even small vehicles such as forklifts or tractors that don’t require their vehicles insurance policy are normally “scheduled” items. Usually, over the $500 – $1000 range of smaller hand tools, these are individually recorded with a description, serial number, and set value.

Additional Types of Tools and Equipment Insurance

Depending on your policy your inland marine floaters may only cover tools while in transit or parked, or when they are left at the work site as well. Here are several of the different types of floaters:

  • Property in Transit: Protects tools and equipment while in transit, such as damaged or loss in a vehicular accident.
  • Installation Floater: Protects tools, equipment, and other materials that are set up at a worksite before the job during the installation and testing phases.
  • Rented and Leased Equipment: Polices can be extended to protect against the loss of equipment rented or leased by the company. This can also extend to equipment that the company rents or leases to other companies or individuals.

When it comes to protecting constructions tools and equipment that move from site to site, these types of floaters and inland marine coverage provide vital coverage to high-cost tools susceptible to damage or theft. When it comes to comprehensive coverage of your construction company and all of its assets and contractors, it’s time to talk to the H&K Insurance Agency. Our construction insurance specialists and programs are here to tailor plans to your individual needs and provide multiple options when it comes to carriers. Contact H&K Insurance today to learn more.

John Herlihy has served H & K Insurance Agency Inc. clients since 1982. John, the Vice President, is engaged in all phases of the agency’s operations and management. He is dedicated to providing excellent service. John’s professional designation of CIC (Certified Insurance Counselor) signifies to clients a competent professional and their assurance of quality assistance with their insurance needs.