Is there anything worse than stolen tools? When you’re a contractor relying on your tools and equipment to get the job done, the answer is a definitive no.
Luckily, you can protect your tools and equipment against theft with a special type of contractor insurance.
1. Stolen Tools Insurance is Called Tools and Equipment Coverage
Business owners want to protect their assets, no matter the industry. But insuring a contractor’s tools and equipment isn’t as straightforward as you may think.
If you were a coffee shop owner, your commercial property insurance would protect the business assets that you keep inside, like the tables, chairs, refrigerators and espresso machines.
But commercial property insurance is typically designed to protect the assets that remain inside the covered property - not equipment that is on the move like your’s.
That’s where tools and equipment insurance comes in. Also known as inland marine insurance, stolen tools insurance is designed to cover your assets that move from one site to the next.
2. What Does Tools and Equipment Insurance Cover?
This one’s pretty straightforward. Tools and equipment insurance covers the work tools and equipment you regularly transport. To get really specific, it’s coverage for construction and contracting equipment transported over land.
Tools and equipment insurance protects against lost tools, stolen tools, and damaged tools.
If your tools are stolen out of your truck or off of a job site, go missing after you’ve loaned them to a crew member, or get damaged by vandals, tools and equipment policies are designed to cover it.
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3. How Does it Work?
Tools and equipment insurance can cover both large equipment and small hand tools. Generally, tools and equipment can be listed in two ways on a policy:
Unscheduled coverage is designed for smaller tools/ equipment with a value of under $1,000 per item. A limit of insurance is chosen to cover all of these items on a blanket basis, which means they don’t have to be listed out one-by-one in the policy.
Scheduled coverage is designed for higher-value items ($1,000 or more). Listing these high-value items, such as excavators, generators, or bulldozers, for example, means the policy will individually list each covered item and its value.
Your coverage may include a mix of scheduled and unscheduled items on a single policy.
Pro tip: keep records and proof of your tools in the event you want to file a claim. Keep receipts or take photos of your equipment so you can verify that you did, indeed, own the tool in question.
4. What’s Not Covered by Tools and Equipment Insurance?
Tool and equipment policies can vary from one insurance company to the next, however, there are some common exclusions found in most policies.
Tools coverage typically does NOT cover:
- Dishonest acts
- War, government seizure, or nuclear hazard
- Pollution damage
- Changes in temperature or humidity
- Loss of documents
- Strikes
- Wear and tear
Be sure to talk to your insurance provider to get a good understanding of what’s not covered in your specific policy.
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You may be able to add endorsements to your policy which broaden the coverage of your tools and equipment policy, including:
- Flood and earth movement
- Disturbance coverage (for electrical or power supply disturbance)
- Upgrade value
- Loss of income
5. What Should You Do if Your Tools are Stolen?
If you walk out to your work truck in the morning only to find that your toolboxes have been broken into and all of your tools stolen, there are two very important things to do right away.
First, call the police and file a police report.
Secondly, call your insurance company.
Your insurance company can walk you through the steps you need to take in filing a claim and get you reimbursed for the stolen tools.
Call Aegis for Reliable, Affordable Tools & Equipment Insurance
At Aegis, we’ve helped thousands of contractors and construction professionals protect their tools and equipment. We know the risks you face when you transport your valuable assets from one worksite to the next, and we can help you protect your business against loss. We also know ways to reduce your insurance costs so protecting your tools doesn’t cost an arm and a leg.
Don’t leave your tools uncovered - call us today.