Tools & Equipment Insurance (Inland Marine)
Tools and equipment insurance — technically a type of "inland marine" coverage — protects portable business property that moves between locations: contractor tools, ladders, generators, and specialized equipment carried in a van or left at a job site overnight. Standard commercial property policies only cover property at a fixed address, so anything that travels needs this separate coverage. It's one of the most commonly filed small claims in the trades, since tools are a frequent target for job-site and vehicle theft.
Tools & Equipment: what it costs, what it covers, who needs it
Rates vary by state, revenue, and claims history — always compare multiple quotes.
Not legally required, but often the single most-used policy for tradespeople given how frequently tools are stolen from vehicles and job sites.
What's covered
- Theft of tools from a job site, vehicle, or storage unit
- Accidental damage to portable equipment (drops, water, fire)
- Tools in transit between job sites
- Rented or leased equipment while in your care, custody, or control
What's excluded
- Normal wear and tear or mechanical breakdown
- Tools left unattended in an unlocked, unsecured vehicle (varies by carrier)
- Vehicles themselves (covered by commercial auto instead)
- Employee dishonesty/theft (needs a crime policy)
Standard commercial property only covers property at a fixed address — anything that travels needs this instead.
What drives the price
- Total value of tools and equipment scheduled on the policy
- How often equipment travels and where it's stored overnight
- Claims history for theft or damage
- Deductible chosen per item or per claim
Real claim example
Thieves break into a technician's van overnight and steal several thousand dollars of specialty tools.
The policy reimburses the replacement cost of the stolen tools, minus the deductible — roughly $6,500.
Tools & Equipment is commonly required for businesses in this situation. At $25–$90/mo, it is one of the most cost-effective ways to protect against a potentially six-figure claim.
Where to get a quote
We don't have partnerships with these providers yet — these are direct links to their public sites, not affiliate links.
FAQs
Isn't this already covered by my commercial auto policy?
No — commercial auto covers the vehicle itself; cargo and tools inside it are only covered up to a small built-in limit, if at all.
Do I need to list every tool individually?
Higher-value items are usually scheduled individually, while smaller tools can often be covered under a blanket limit.
Does it cover tools I rent for a specific job?
Most policies extend to rented/leased equipment while it's in your care, custody, or control — confirm the limit with your carrier.