Business insurance • Contractors
Tools and Equipment Insurance for Contractors: Inland Marine Coverage Explained
Tools and equipment insurance, a type of inland marine coverage sometimes called a contractor’s equipment floater, covers your tools and equipment while they are at a jobsite, in your truck, or stored off-site. General liability doesn’t cover your own property, and commercial property coverage is mainly built for your business location. Insureon reports a median of about $48 a month.
This guide covers what tools and equipment insurance pays for, scheduled versus blanket coverage, common exclusions, and what it costs. If you build or renovate structures, also see builder’s risk insurance.
Request a tools and equipment quote
Tell us your trade, the tools and equipment you carry, their values, and where you store them, and a licensed agent will follow up. Submitting the form does not bind coverage.
If the form does not load, call 888-387-3687, Monday through Friday, 9:00 to 5:00, or email info@blakeinsurancegroup.com.
Prefer to quote online yourself?
Start a business insurance quote online with one of our partners, without waiting for a call back.
Get a quote from ERGO NEXT →General liability, workers’ compensation, business owner’s policies, professional liability, and commercial auto.
Start an application with First Connect →Quotes from multiple insurance carriers through our First Connect portal.
Sponsored. Each link opens the partner’s website in a new tab, where its terms and privacy policy apply. Blake Insurance Group may be compensated if you buy.
What tools and equipment insurance covers
The coverage follows your property wherever you work. A policy can pay to repair or replace tools and equipment that are stolen or damaged:
- At a jobsite or client’s property
- In transit in your vehicle or trailer
- Stored at another location, such as a storage unit or yard
- In some policies, rented or leased equipment and employee-owned tools, if you add them
Related inland marine coverages include an installation floater for materials and equipment you are installing until the job is accepted (IRMI: installation floater), and builder’s risk for a structure under construction.
Scheduled vs. blanket coverage
| Option | How it works | Best for |
|---|---|---|
| Scheduled | Each item listed with its description, serial number, and value | Higher-value equipment such as generators, lifts, and compactors |
| Blanket (unscheduled) | One limit for many small tools, often with a per-item maximum | Hand tools and power tools you replace often |
| Combination | Scheduled big items plus a blanket limit for small tools | Most growing contractors |
Also choose the valuation: replacement cost pays to buy new, while actual cash value subtracts depreciation and costs less.
Common exclusions and gaps
- Wear and tear, rust, and mechanical or electrical breakdown
- Theft from an unattended vehicle unless it was locked and showed signs of forced entry, a condition in many policies
- Unexplained disappearance or inventory shortages
- Employee-owned or rented equipment, unless added
- Your truck itself, which is commercial auto; auto policies generally don’t cover tools inside the vehicle
How it fits with your other policies
| Loss | Usually covered by |
|---|---|
| Tools stolen from a jobsite or truck | Tools and equipment (inland marine) |
| Tools at your shop or office | Commercial property or a BOP, plus inland marine for off-site |
| A client’s property you damage | General liability |
| A worker hurt using equipment | Workers’ compensation |
| Building under construction | Builder’s risk |
Tools coverage can often be added to a business owner’s policy or commercial package policy (Insureon tools and equipment cost data (updated May 2026)). See inland marine vs. commercial property.
How much tools and equipment insurance costs
Insureon reports a median of about $48 a month for small businesses, with most paying about $150 to more than $4,500 a year (Insureon tools and equipment cost data (updated May 2026)). Price depends on:
- Total value of scheduled equipment and the blanket limit
- Deductible and valuation method (replacement cost costs more)
- Your trade and the hazards covered
- Where you work and store equipment, and your claims history
How to set limits and file a clean claim
- Keep an inventory with photos, serial numbers, and receipts, and update it when you buy equipment.
- Add up replacement costs, not what you paid years ago, before choosing limits.
- Lock tools in the vehicle or a secured box and document your storage.
- Report theft to police right away; insurers usually require a report.
Tools and equipment insurance FAQs
Does general liability insurance cover my tools?
No. General liability covers injury and damage you cause to others, not your own tools and equipment.
Are tools stolen from my truck covered by auto insurance?
Generally not. Commercial auto covers the vehicle; tools inside it need tools and equipment (inland marine) coverage.
How much does contractor tools insurance cost?
Insureon reports a median of about $48 a month, with most small businesses paying about $150 to more than $4,500 a year.
What is the difference between scheduled and blanket tools coverage?
Scheduled coverage lists each item and its value; blanket coverage gives one limit for many small tools, often with a per-item cap.
Is tools and equipment insurance the same as inland marine?
It is one type of inland marine insurance, which covers business property that moves or is away from your premises.
Related guides
Important information
Compensation. Links in the partner quote box near the top of this page are sponsored, and Blake Insurance Group may be paid if you make a purchase. Sponsored placement does not affect the other information on this page.
Independent agency. Blake Insurance Group LLC is an independent insurance agency. Licensed insurance producer NPN 16944666. Licensed states: AZ, AL, TX, CA, NY, OH, FL, NC, VA, GA, OK, NM, IA, KS, MI, NE, SC, SD, WV, IL, NJ, PA, TN, and WA. Which insurance companies we can quote depends on our current appointments, the product, and your state. Mentioning a company on this page does not mean we represent it.
Cost figures. Published averages and ranges are cited from the sources named, as of the dates shown. They are not quotes and may not reflect your price, which depends on the insurer, your state, your business, your payroll and revenue, your limits, and your claims history.
Availability. Coverage, prices, discounts, and eligibility vary by insurer, state, and applicant, and are subject to underwriting. The issued policy controls.
Your next step
Tell us what you carry and where you work, and a licensed agent will help you insure your tools and equipment with the insurers we offer in your state.
