Contractors Equipment Insurance
Protect your tools, machinery, and mobile equipment wherever the job takes you.
Contractors equipment insurance, sometimes called an equipment floater, can cover your tools, machinery, and mobile equipment against damage, theft, and loss wherever they go, whether on the job site, on the road, or in storage.
For most contractors, their equipment is one of their biggest investments. A regular commercial property policy covers things at a fixed location, but it leaves your tools and machinery unprotected once they travel from site to site. Contractors equipment insurance covers physical damage and loss to the mobile tools, machinery, and equipment you use to get the job done, wherever they happen to be.
Who Should Consider Contractors Equipment Insurance?
Any contractor or construction company that hauls tools and equipment between job sites needs coverage that travels with them. That gear can be worth anywhere from hundreds to hundreds of thousands of dollars.
- General contractors and specialty trades working at multiple locations
- Heavy equipment operators with bulldozers, loaders, and excavators
- Electricians, plumbers, and mechanical contractors with portable tools
- Companies that lease or rent equipment for project use
- Any business with generators, compressors, or pneumatic tools on site
What can be covered?
Broad Coverage
Policies can cover a broad range of sudden physical loss or damage, though what is included and what is excluded varies by policy.
Theft & Vandalism
Can cover equipment stolen or vandalized on the job site, on the road, or in storage.
Fire & Weather Damage
Can cover equipment damaged by fire, flood, windstorm, and other natural events.
Leased & Rented Equipment
Can extend coverage to gear you lease or borrow, since most rental agreements make you responsible for it.
Rental Reimbursement
Can cover the cost of renting a replacement while your own equipment is being repaired after a covered loss.
Expediting Expenses
Can cover extra labour, freight, and shipping costs to speed up replacing specialized equipment after a covered loss.
Coverages shown are general examples, not a description of any specific policy. Policy coverages widely vary and should be confirmed with your broker.
List Each Item, or Cover a Whole Category
You can cover your equipment two ways: list your high-value items one by one, or cover a whole category of smaller tools under a single limit. Most contractors use a mix of both. When you set up the policy, give us a detailed list of your tools and equipment, including make, model, serial number, and value, and review it once a year so new gear gets added and older items are valued correctly.
How Pricing Works
What drives your premium
- The total value of what you are insuringThe value of everything on your equipment list, from hand tools to excavators. This is the number the premium is built on, which is why an accurate, current list matters.
- The kind of equipmentHeavy machinery like loaders and excavators is rated differently from portable tools, generators, and compressors. Small, valuable, easy-to-carry gear is the most likely to be stolen.
- Where the gear sits overnightSite security is the biggest theft lever you control. Locked and alarmed trailers, fenced compounds, lighting, cameras, and GPS trackers on major units all lower the price.
- Where you workJob sites in high-theft areas, remote sites with no one watching them, and sites you leave equipment on for weeks all raise the price compared with gear that goes home each night.
- Age of the equipment and how a claim is paidHow each item on your list is valued at claim time affects the premium, and older equipment is treated differently than new. We set this with you when we build the schedule.
- Leased and rented equipmentRental agreements almost always make you responsible for the machine while it is in your hands, so the limit you carry for rented gear is priced on how much you typically have out at once.
- Theft and damage claims historyPast tool and equipment theft claims raise the price sharply, because insurers treat repeat theft as a security problem rather than bad luck. A higher deductible can bring it back down.
Frequently asked questions.
What does contractors equipment insurance cover?
It can cover your mobile tools, machinery, and equipment against physical loss or damage, including theft, vandalism, fire, and weather, whether they are on a job site, on the road between sites, or in storage. Policies can cover a broad range of sudden physical loss or damage, subject to the exclusions and limits in your policy, and can often be extended to leased or rented equipment.
Doesn't my commercial property policy already cover my tools?
Only at a fixed location. A standard property policy protects items at your insured location, not equipment that travels from site to site, which for most contractors is where the value and the risk are. Contractors equipment coverage is built to move with your gear and close that gap.
Does it cover tools and equipment I rent or lease?
It can. Most rental and lease agreements make you responsible for damage or loss while the equipment is in your hands. This coverage can be extended to pay for physical damage to the rented item itself, so a damaged rented excavator does not come out of your own pocket. We will set the limit to match how much you typically rent.
How do I insure my equipment, and do I list every item?
You can list your high-value items individually (with make, model, serial number, and value) and cover your smaller tools together under one limit. Listing items is precise; covering a category is flexible for lots of low-value tools. Most contractors use a mix, and we will help you build the list and review it each year.
Is stolen equipment covered, and what affects the payout?
Yes, theft is a core covered event. Your payout depends on whether your gear is insured to replace with new or at its depreciated value, and on having accurate values on file. Good records and reasonable site security help at claim time. We will confirm how your payout is figured so there are no surprises after a loss.
What does contractors equipment insurance not cover?
This covers your own gear against damage and theft. It is not liability coverage for damage your equipment causes to others, and it is not a maintenance policy. It generally does not cover equipment that simply breaks down from a mechanical or electrical failure (that needs equipment breakdown coverage), or wear and tear, rust, and gradual deterioration. A deductible applies to each claim. We will point out the gaps and pair the right coverages.
Cover Your Equipment On Every Job
Our team is ready to find the right coverage at the right price. Get a tailored quote today.