This inland marine coverage insures contractors' equipment on a scheduled or blanket basis. For many contractors, their major assets are equipment, such as cranes, power shovels, tractors, and bulldozers. Large items can be specifically scheduled, while a blanket limit may be used for smaller items.
Tool coverage, including employee tools, can also be provided. Coverage is often based on all risk-type perils or special causes of loss and is tailored to suit the individual insured's needs. A deductible sufficient to eliminate smaller, petty pilferage losses is preferred. Special limitations on crane-use are common.
What is Contractors Equipment Insurance?
Contractors Equipment Insurance (an inland marine form) protects movable construction and heavy equipment from physical loss or damage. It complements property coverage and can be written on a scheduled basis—covering named units—or on a blanket basis that pools smaller tools and miscellaneous gear under a single limit. The policy responds to risks such as theft, vandalism, transportation damage, and certain on-site accidents.
Who needs it
Equipment owners, contractors, subcontractors, and specialty operators rely on this protection. Typical buyers include general contractors, material handlers, and artisan trades who use cranes, loaders, compressors, or portable tools. Small contractors and large fleets alike use equipment coverage to manage replacement costs and limit operational interruption.
What it typically covers
Typical coverage elements include physical damage to scheduled units, blanket coverage for tools, and optional coverage for rented or borrowed equipment. Policies often integrate with broader programs addressing commercial liability, equipment coverage, and commercial auto exposure to provide coordinated protection across exposures.
For contractor businesses that focus on repair or on-site services, customized inland marine forms may be available—see the Service & Repair Artisan Contractors Inland Marine Insurance page for examples of how coverage can be tailored. Larger lifting or material handling operations should review options on the Material Handling Contractors Insurance page to compare limits and endorsements.
Common exclusions or limitations
Exclusions frequently include wear-and-tear, mechanical breakdown (unless a mechanical breakdown endorsement is purchased), intentional damage, and unreported loss or disappearance. Many policies impose special crane-use limitations or require certifications for high-risk operations. Scheduled items usually must be listed with serial numbers to be covered fully.
Factors that influence cost
Underwriting factors include the age and condition of equipment, annual revenues, storage and security measures, job-site hazards, frequency of transportation, operator qualifications, and past loss history. Transportation risks and the distance equipment travels between sites can raise premiums. Deductible levels are also a primary driver of price—higher deductibles reduce premium but increase out-of-pocket risk for smaller losses.
Proof of insurance & compliance
Contractors are often required to provide certificates of insurance or equipment schedules to project owners or lenders. Lenders may require specific loss-payee or mortgagee endorsements on scheduled equipment. Discuss obligations and documentation needs with your broker or, if you prefer to get a formal quote, consider clicking the phrase talk to your agent to start the process.
How to get a quote
Prepare a list of equipment by make, model, year, and serial number for scheduled items, plus a value estimate for blanket tool limits. Insurers will ask about storage, transport, operator training, and any rental exposures. For contractors with specialty inland marine needs, see Commercial Inland Marine Insurance for Artisan Contractors for additional guidance on endorsements and tailored wording.
Risk scenario: a crane damaged during transport or a box of employee tools stolen from a locked van can create repair and replacement costs that this coverage is designed to address.
Frequently Asked Questions
Does the policy cover employee tools?
Yes—employee tools can be included under blanket tool coverage or scheduled separately; limits and deductibles apply and details vary by insurer.
What's the difference between scheduled and blanket coverage?
Scheduled coverage lists specific items with agreed values, often for high-value units. Blanket coverage pools small tools and miscellaneous equipment under a single limit without itemizing each piece.
Are mechanical breakdowns covered?
Mechanical breakdown is commonly excluded but may be added as an endorsement for an additional premium; review your policy wording with your broker to confirm available options.
Still have questions? Talk to a local insurance expert.