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Truck with tools-Business Insurance Covers Tools

What Type of Business Insurance Covers Tools?

2 minute read

We all depend on technology and equipment to do our jobs. Whether it’s general construction, plumbing, welding, or another trade, your tools are your livelihood. If you’re wondering if Insurance covers tools, know that protecting your tools with insurance is possible as long you have the proper coverage on your Business Insurance policy. Tools transported regularly or kept at various job sites can typically be covered under an Inland Marine Insurance policy.

Inland Marine Insurance Protects Your Tools

Inland Marine Insurance is Business Insurance that covers equipment, tools, and materials while it’s being transported—that includes your tools and equipment as they’re moved from job site to job site and the various stops in between. This coverage provides a financial protection level against theft, vandalism, and accidental damage, even for rented or leased equipment.

How Does Inland Marine Insurance Work?

A typical Commercial Property Insurance policy will cover the property that remains at the address listed on your policy.  The advantage of Inland Marine Insurance is that the coverage travels with your tools and equipment. In addition, this coverage is great at protecting you for equipment valued above $10,000.

Whether your tools and equipment are owned or leased, Inland Marine Insurance is what you want to have. Here are just some examples of how this type of insurance can work for you:

Property That Moves Around (Tools)

A mason is building two custom fireplaces and transporting his tools and larger equipment to the job site. While stopping for materials at the Home Depot, some of his more expensive tools are taken from his truck. Inland Marine Insurance could cover this incident.

Vandalized or Damaged Equipment

You own 3 food trucks serving the best BBQ food around. While setting up at an event, you realize that your top-of-the-line smoker was somehow damaged while transporting it and is rendered useless. You do have Commercial Truck Insurance, but that only covers the truck. Inland Marine Insurance could cover the repairs or replacement of the damaged equipment.

How Much Does Inland Marine Insurance Cost?

The cost of Inland Marine Insurance is relatively affordable, even for a small business. The exact cost will be determined by several factors, primarily:

  • Desired coverage limits
  • Industry
  • Past claims
  • Value of property you wish to insure.

Combining Business Insurance Coverages

An Inland Marine Policy may be the perfect addition to other highly recommended, and even required, coverages such as General Liability, Commercial Property, Contractor’s Bond, etc. Having the appropriate coverage may be quite affordable for your business, especially when bunding coverages in a Business Owners Policy (BOP).


The information in this article is obtained from various sources. This content is offered for educational purposes only. It should not replace the advice of a qualified professional. The definitions, terms and coverage in a given policy may be different than those suggested here. No warranty or appropriateness for a specific purpose is expressed or implied.