Insuring your Tools & Equipment

Insuring your Tools & Equipment

March 24, 2023

As a contractor, your tools and equipment are essential to your job. They are also valuable assets that you need to protect. Whether you own a small construction company or work as an independent contractor, it's essential to have insurance coverage to protect your tools and equipment. In this blog, we'll discuss how contractors can cover their tools and equipment in Massachusetts.

Understand Your Risks

Before purchasing insurance coverage for your tools and equipment, it's important to understand the risks associated with your business. Theft, vandalism, and damage can all impact your tools and equipment, leading to significant losses. Additionally, accidents or injuries on the job site can also result in damage or loss of your tools and equipment.

Review Your Existing Insurance Policies

Many contractors may assume that their existing insurance policies will cover their tools and equipment. However, it's important to review your policies carefully to see what is covered and what is not. Your general liability insurance policy may not cover damage or loss to your tools and equipment. Therefore, it's essential to consider additional coverage to protect your valuable assets.

Consider an Inland Marine Insurance Policy

An inland marine insurance policy, also known as equipment coverage, is specifically designed to cover your tools and equipment. This policy can cover your tools and equipment while they are in transit, on job sites, or in storage. The policy can also cover damage or loss due to theft, vandalism, and other perils.  Some policies may offer a blanket limit so that your tools are covered under one miscellaneous limit. There typically is a maximum limit per item this way. You may want to separately list or schedule larger and more valuable equipment including mobile equipment such as a forklift or loader.

Take an Inventory of Your Tools and Equipment

To ensure that you have the right insurance coverage, it's essential to take an inventory of your tools and equipment. This will help you determine the value of your assets and ensure that you have adequate coverage. Be sure to update your inventory regularly to reflect any changes or additions to your tools and equipment.

Work with an Independent Insurance Agent

When it comes to insuring your tools and equipment, working with an independent insurance agent is highly recommended. An independent insurance agent can help you find the right coverage for your needs at a price you can afford. They can also help you understand the policy's terms and conditions, so you know exactly what you're getting.


Contractors need to protect their tools and equipment from damage, theft, and other risks. By understanding your risks, reviewing your existing insurance policies, and considering an inland marine insurance policy, you can protect your valuable assets. Taking an inventory of your tools and equipment and working with an independent insurance agent can help you find the right coverage for your needs.

Ready to Discuss Contractors Insurance?

Contractors Insurance Consultation´╗┐