Contractor’s Tools and Equipment Insurance

File a police report the same day, then send us the inventory. Serial numbers, purchase receipts, and photographs are what turn a claim into a paid claim, and they are far easier to assemble before a theft than after one. Note where the vehicle or gang box was, whether it was locked, and how entry was made, because most forms condition theft coverage on those facts. Expect settlement on the valuation basis in your policy. Replacing the locks and moving to a locked, enclosed storage arrangement often affects the next renewal.

Schedule it, and match the policy to the lease. Short-term rentals usually fall under the rented equipment extension. Equipment on a long-term lease or a lease-purchase is different. The lessor generally requires it listed by description and value, wants to be named as loss payee, and sets the valuation basis in the lease itself. If the lease says replacement cost and the policy settles at actual cash value, the difference lands on you. Send us the schedule of leased items at renewal rather than after a loss.

Generally yes, and the exception is the one that catches people. A contractors equipment floater is written to follow property that moves, so tools in a truck between sites are normally within it. What varies is theft from a vehicle. Many forms require the vehicle to be fully enclosed and locked, some exclude theft overnight from a vehicle left on the street, and some apply a higher deductible. If your crew leaves loaded trucks at home or on site overnight, tell us, because it changes which form fits.

Usually by extension, and the rental contract asks for more than the policy gives by default. Most contractors equipment forms include a limit for equipment rented, leased, or borrowed, often smaller than the limit on your owned tools. The rental agreement is the part to read. It commonly requires coverage at full replacement value, names the rental company as loss payee, and holds you responsible for continuing rental charges while a damaged machine is repaired. That loss-of-use exposure is not automatic and has to be added. Send us the agreement before the delivery arrives.

Wear, breakdown, and the tools you cannot prove you owned. Normal wear and tear, rust, and mechanical or electrical breakdown are maintenance rather than sudden loss. Employee theft is excluded and belongs to crime coverage. Most forms will not respond to tools taken from an unlocked or unattended vehicle, and some require a fully enclosed locked vehicle or a locked box. Older equipment commonly settles at actual cash value rather than replacement cost, so a fifteen-year-old compressor does not come back new. Keep receipts and serial numbers.