Tools & Equipment Insurance for Contractors - Get Online Quotes | Insureon (2024)

FAQs

What does tools and equipment insurance cover? ›

Also called equipment floater insurance and "tool insurance," it's designed for construction and contracting companies and installation professionals that work at different job sites. It protects movable tools and equipment wherever you take them, and pays for repair or replacement if they are lost, damaged, or stolen.

Is tools insurance worth the cost? If you use tools for your work, then insurance can provide valuable protection. If you haven't got your tools, because they have been lost, damaged, or stolen, you won't be able to complete your work, and potentially other jobs you have in the pipeline.

The purpose of this article is to correct that misperception, by describing the typical scope of protection offered by three forms of insurance commonly found on a construction project: Commercial Liability Insurance, Builders Risk Insurance, and Professional Liability Insurance.

Chubb (Best for Large Firms & Heavy Equipment)

Chubb is the largest commercial insurer in the U.S. Among a wide range of business policies, Chubb offers comprehensive equipment insurance to help contractors protect their tools and equipment.

Equipment insurance is a crucial form of coverage for businesses that rely heavily on their tools and equipment to keep their operations running. It pays out the cost to repair or replace essential items if these are accidentally damaged or lost.

Normal wear and tear, and damage from neglect and poor maintenance, are not covered by equipment breakdown coverage.

Tool insurance covers the cost of replacing your tools if they're lost or damaged - for example, due to fire, flooding or theft. Tools that could be included are: Handheld tools (hammers, screwdrivers, saws, pliers) Power tools (drills, sanders, angle grinders, nail guns)

While general liability protects your business from expenses related to damaged property that belongs to someone else, your own tools and equipment would not be covered unless you have tools and equipment insurance.

1. Insurance Has Many Terms and Conditions. Insurance covers not all losses in a person's life or business situation. Insurance plans' terms and conditions give consumers financial assistance solely in accordance with those conditions.

General liability insurance, commonly referred to as commercial general liability (CGL) insurance, is usually the first choice and most common type of insurance coverage that a contractor will seek out. However, while CGL creates a great base for coverage, it does not offer total liability protection.

What is construction insurance called? ›

Builders risk insurance

Builder's risk insurance (also called course of construction insurance) is property insurance that protects buildings while they are under construction, either during a remodel or new construction. It helps mitigate the risk of certain damages during the construction process.

Construction insurance is insurance protection that provides financial compensation for covered losses to a building or structure, as many mistakes, errors, and unforeseen events can lead to damages and losses during the construction of a building.

Term insurance is initially cheaper than other types of policies that offer the same amount of protection. Therefore, it gives you the greatest immediate coverage per dollar.

General Liability Insurance For Excavation Contractor

It covers property damage and injuries you may cause to third parties while you are doing earthmoving work. Since most of your work is going to come from general contractors they require that you carry at least a certain amount of liability coverage.

There are five categories of equipment that equipment breakdown insurance typically covers: Mechanical, which includes motors, engines, generators, elevators, water pumps and specialized production and manufacturing equipment. Electrical, which includes transformers, electrical panels and cables.

Custom parts and equipment (CPE) coverage can help pay to repair or replace items that you add to modify your car, like a stereo, navigation system, custom wheels, or even a paint job.

For the most part, tools and equipment insurance is a policy for contractors that covers your tools and equipment on different job sites. The policy covers lost, stolen, or damaged tools. Here are some important things that must be remembered about this coverage: The tools must be less than five years old.

Covered services typically include regular office visits with your doctor, tests, urgent and emergency care, hospital stays, prescription drugs, medical equipment and more.