Protect Your Livelihood With Contractor Tool and Equipment Insurance

Contractors like you rely on a variety of tools and equipment as you perform your job. Make sure you have adequate insurance as you protect your tools, equipment and livelihood.

What is Contractor Tool and Equipment Insurance?

Contractor tool and equipment insurance covers the hand tools, power tools and equipment you use in your contractor business. If these items suffer physical damage or are stolen, vandalized or affected by another peril, you can file a claim and receive reimbursement to buy replacements. While this valuable insurance does not cover general wear and tear from everyday use, it can cover items you own, rent, lease or borrow.

Does it Matter Where you Store Your Tools and Equipment?

Your contractor tool and equipment insurance policy is active whether you store your tools at home, at your business location or at a construction site. It’s also effective as you transfer or transport your tools. You may even file a claim if you rented or loaned your tools to someone, but be sure the rental or loan agreement is in writing.

For added protection, always keep your tools locked in a case, box or trailer when possible to protect them. Consider installing GPS on expensive items or place an alarm on your tool box or trailer, too.  

Does Contractor Tool and Equipment Cover Other Items?   

Your specific contractor tool and equipment insurance policy may cover a variety of items related to your business.

  • Clothing you wear for your job, including tool belts and harnesses  

  • Debris removal and cleanup after an accident, such as an oil spill from your broken chainsaw

  • Costs associated with expediting a project that’s affected by a covered loss  

How Much Contractor Tool and Equipment Insurance Should you Buy?

Your policy limit depends on the value of your tools, so itemize and assign a replacement value to each tool and piece of equipment you own. You can then purchase enough insurance to cover your items. Update your inventory regularly so you’re prepared if you need to file a claim.

How do you File a Claim?

To file a claim, contact your insurance agent. You may need to prove that a covered peril affected your belongings and that you were not negligent. You will also need to pay the policy deductible, which is usually $500. Then access your inventory list to know the exact worth of the compromised tools, receive reimbursement and return to work.

How do you Purchase Contractor Tool and Equipment Insurance?

Discuss your contractors tool and equipment inventory with your insurance agent. They will prepare a customized policy based on your unique needs and give you valuable peace of mind as you protect your livelihood, tools and equipment.
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