Tools and Equipment Insurance

Tools & Equipment Insurance for Contractors

Get the coverage you need to protect your most important tools & equipment.

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Zensurance - Contractor Tools
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Claims Examples

Coverage

Problem: You’re an electrician installing electrical wiring into a new shopping plaza. You left your hand tools secured in the building overnight and realized your tools had been stolen when you returned the following day.

Outcome: Your Contractors Tool Cover Insurance policy may cover the cost to replace the stolen tools, totalling $1,400.

Coverage

Problem: You’re a mechanic fixing the engine on a car. While working on the car, you drop a heavy tool on a nearby air compressor which damages the motor, making it unusable.

Outcome: Your Tools and Equipment Insurance policy may cover the cost to repair the air compressor’s engine, totalling $2,400.

Coverage

Problem: Your small construction company is building an extension on a home. The site got vandalized while you were out for lunch, and your bulldozer was broken beyond repair.

Outcome: Your Construction Equipment Insurance may cover the costs of repairing the bulldozer, totalling $10,000.

Tools & Equipment Insurance, Explained.

What is Tools & Equipment Insurance?

Tools and Equipment Insurance is a type of property coverage that provides financial protection for any transportable tools or equipment that contractors use to complete work-related projects.

Tools and Equipment Insurance can provide reimbursement to repair or replace tools if they are lost, damaged, or stolen. Insured events apply to tools and equipment that are vandalized, stolen, lost, or damaged by fire or flood.

Any item valued at less than $1,500 is considered a tool, whereas anything valued above is considered equipment.

What does Tools & Equipment Insurance cover?

Coverage includes reimbursement of the costs to repair or replace business-owned tools and equipment used by contractors, whether owned, leased or rented. Tools and Equipment Insurance also extends coverage whether they’re in storage, while transport, or left at a client’s location.

Common examples of property covered under this insurance policy include:

  • Hand Tools
  • Power Tools
  • Safety Gear
  • Assisting Tools
  • Measurement Devices
  • Heavy construction equipment
    • Bulldozer
    • Excavator
    • Backhoe

How much is Tools & Equipment Insurance?

Tools and Equipment Insurance costs start around $400 per year but could vary based on several factors unique to your business.

  • Types of tools and equipment
  • Value of each item
  • Location
  • Previous insurance claims

During your online quote, we’ll ask questions about your business to understand your needs. 

What does it not cover?

Tools and Equipment Insurance doesn’t provide coverage for:

  • Damage due to general wear and tear
  • Deliberate or non-insured damages 
  • Tools or equipment past its useful life

Who needs Tools & Equipment Insurance?

Tools and Equipment Insurance is designed to protect the tools used by construction companies and contractors that work at multiple job sites. Here are a few industries that can benefit from this coverage:

Additional coverage options

Tools & Equipment Insurance is generally an additional coverage within a comprehensive contractor’s insurance policy. Contractors may also benefit from the following insurance policies: 

Frequently Asked Questions

What is the difference between Commercial Property Insurance and Tool Insurance?

Commercial Property Insurance covers commercial property (owned or leased), and the physical contents within that property should it be damaged or lost due to an event such as fire, theft, or vandalism.

Tool and Equipment insurance offers similar property coverage, but it’s explicitly intended for construction and trade contractors looking to protect their tools and equipment often used in different locations.

Is Contractor Tool Cover Insurance worth it?

Yes – Chances are, all of your projects rely on specific tools and equipment to get the job done. There’s always a risk that an item could be damaged, lost, or stolen even with every precaution taken. It’s necessary to safeguard essential equipment with tool cover insurance to prevent a costly replacement and a delayed project.

Can I purchase a standalone Tools and Equipment Insurance policy?

Yes, you can, but typically, Tools and Equipment Insurance is part of a policy package to ensure your business is covered for other business risks. Other coverages frequently purchased with  Tools and Equipment Insurance are; Commercial General Liability, Professional Liability Insurance, and Professional Liability. 

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