What Is Tool And Equipment Insurance?

Often known as inland marine insurance, construction equipment insurance protects a contractor's trade instruments. Huge pieces of machinery such as excavators and bulldozers to little instruments like hammers, cutting tools, and drills. 

For the most part, contractors' tools and equipment insurance is a coverage that protects your tools and equipment in various job locations. The policy covers tools that are lost, stolen, or damaged.

​There are things to consider when it comes to this coverage:

• All of the equipment must be newer than 5 years old.
• Common wear and tear, such as paint flaking, is not covered.
• Only tools and equipment that can be moved are covered.

What Does Tool & Equipment Insurance Cover?
Small tools and equipment, such as hammers, screwdrivers, and nail guns, that cost less than $10,000 are covered by tool and equipment insurance.

The majority of the time, the policy covers:

• Theft.
• Inoperable equipment.
• Expired items.
• Vandalism.
• Rental equipment has been damaged.

When you store your equipment at your main office site, for example, industrial property coverage protects them. The tools are no longer protected when transported to a job location. This is where coverage for tools and equipment comes into play. Also, tools are being stolen from construction sites more often than you may imagine.

Tools and equipment coverage will ensure that it is insured when your equipment is on its way to a building site, on-site, or away from your main location.

What is Not Covered?
Tools and Equipment coverage does not cover bodily harm or property damage caused by others; a General Liability policy normally covers this. Aside from that, there is no coverage for wear and tear, faulty equipment, or the disappearance of tools and equipment for no apparent reason.

How can I know what's covered if I have a wide range of tools?
A certificate of insurance (COI) tracking and monitoring software, in any case, is the easiest method to keep track of which tools you have insurance coverage for.

You may submit documents and receive notifications when they need to be updated using COI tracking software.

The Bottom Line
Maintaining good tools for every construction is an important element of your work as a contractor. Because work is going forward and equipment is always changing, this is challenging. As a result, it is fairly unusual for these objects to be misplaced.

At CSIS Insurance Services Inc, we do our best to ensure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (888) 501-2747 or Click Here to request a free quote. The coverage discussed in this article is not guaranteed. Please call our agents, we are happy to help you learn more about your plan and make sure you have the coverage you need.