Contractors Equipment Insurance

On Point.

Contractors Equipment Insurance protects the owned and rented equipment your business depends on from loss, damage and theft. This coverage can be tailored to your business needs, its industry and the equipment and tools you use.

Contractors Equipment Insurance

The Blindspot

Businesses of all sizes depend on specialized tools and equipment to provide their services. Losing those tools may interrupt your work or in the case of extensive loss, shut your business down. You may have assumed tools were covered, or thought it wasn’t worth the hassle of insuring, but without your equipment, your business could be in serious trouble.

Contractors Equipment Insurance

The Solution

Contractors equipment insurance comes in all shapes and forms, depending on your business’ coverage needs, its industry, and the equipment and tools it uses. Policies can be tailor built to your business needs. They will provide peace of mind and the assurance you require for your tools and equipment. It can cover your non-mobile and mobile machinery, tools and equipment that are owned by you or in your care – even if these are borrowed or rented from others.

Contractors Equipment Insurance coverage covers equipment, tools, and machinery of all shape, size and usage.

Some examples include:

  • Forklifts
  • Loaders
  • Excavators
  • Hand Tools
  • Bulldozers
  • Skid Steers
  • Scissor Lifts
  • Boom Lifts
  • Graders
  • Cranes
  • Backhoe
  • Loaders
  • Excavators
  • Power drills
  • Saws
  • Telehandlers
  • Motor Graders
  • Trenchers
  • Articulated Haulers
  • Mining Equipment
  • Compactors
  • Drum Rollers
  • Eavestrough Machines
  • Brakes

… and much more!

Your equipment is likely quite expensive, and would take a great deal to replace if you had to. It often reflects the accumulation of wealth and success in your business, and is worth protecting.

Free Takeaway: Excaliburs Contractor Equipment Loss Prevention Checklist (Download or PDF)

Your tools are essential to your work. A loss could stop your work in its tracks. Use our checklist to help ensure your equipment is kept safe.

Can you give me a few examples
of ‘coverage’ in action?


The specialized floor sanders
you rented for your job are wrecked in an unexpected site flood. Rather than holding the bag on the tool costs with the rental agency your equipment insurance covers the replacement and leaves you clear to get new tools borrowed and back on the job.


Your POS system is corrupted across several of your storefronts. You’ve lost several computers and you were unable to accept forms of payment for a full day resulting in a loss of income at those locations. Your equipment insurance steps in to replace the equipment and help with lost time.


Your employee experiences a loss of a collection of small hand tools removed from a client’s jobsite. With your equipment insurance your employee is able to replace the tools and get back to the next customer on time.

Frequently Asked Contractors
Equipment Insurance Questions

Your business offers unique services and as such your tools and coverage needs can vary. These frequently asked questions might help you understand more about Contractors Equipment Insurance.

Excalibur Insurance can help you secure a Contractors Equipment Insurance solution to best meet your needs. Schedule a consultation with us today.

What does Contractors Equipment Insurance cover your tools and equipment for?

Contractor’s Equipment Insurance is designed to protect your equipment if it is damaged, lost or stolen. It is more of a broad-ranging policy than you might think. You can customize your Contractor’s Equipment Insurance to cover your equipment and tools for their total value. Depending on how in-depth you’d like your policy to be, you could also cover your employee’s work clothing and smaller tools.

Companies that work in plumbing, carpentry, and other specific skill-based contracting jobs may benefit from this coverage given the number of clients they visit and the small tools they would be carrying with them. Despite the importance of our tools, not many contractors see the need to include this coverage in with their overall commercial policy. However, coverage can be as little as $50-$100/year for a $10,000 limit. With this, your tools and equipment may have coverage for:

  • Rented and borrowed equipment
  • Stolen equipment and tools
  • Fires, floods, and vandalism
  • Equipment in transit
  • Direct physical damage

Typically, Contractor’s Equipment Insurance policies are written on an “all-risk” basis, so every peril is included apart from those that are specifically excluded by the terms of the policy. Generally, Contractor’s Equipment Insurance will protect firms from a number of different exposures, including fire, flood, theft, equipment breakdown, vandalism, and numerous other types of damage. This coverage will follow equipment and tools in transit as well, at worksites.

What is the difference between blanket and scheduled coverage when it comes to Contractors Equipment Insurance?

You may have the option of choosing from different types of coverage for your Contractor’s Equipment Insurance: scheduled coverage, blanket coverage, or a combination of both. Before you decide on a policy, you should read through the details of both:

Blanket Coverage

will include any equipment, tools, or items that are considered covered property. Blanket coverage will protect property up to the coverage limit on the schedule no matter what is listed in a schedule.

Scheduled Coverage

will exclusively cover items that are listed in an agreed-upon schedule. In this case, a detailed list of the items being covered must be attached to the policy and kept with the insurer. In certain cases, policyholders may have coverage for newly acquired equipment during the policy term.

What is the difference between actual cash values and replacement costs as it relates to Contractors Equipment Insurance?

Contractor’s Equipment insurance has the option of being based on replacement cost or actual cash value. Actual cash value (ACV) offers reimbursement to contractors for the replacement costs of the equipment and tools for their value at the time of loss minus any depreciation. Note that the value of tools and equipment can depreciate very quickly, and the policyholders should be conscious of how a policy is worded.

Replacement value offers coverage for the cost to repair or replace the equipment or tool with another item that is of similar kind and quality.

Business Insurance – 2 Minute Insights

Common Commercial Insurance Categories

Real Estate Developer

Retail Enterprise



Garage Repair Shop

Professional Services

Medical Services

Lawyers & Law Firms

Fleet & Commercial Auto

Wholesaler / Distributor

Landlord / Rented Dwellings

Food & Beverage

Common Commercial Insurance COVERAGES

Commercial Auto Coverage

Commercial General Liability Insurance

Commercial Property Coverage

Business Interuption Coverage

Directors & Officers Coverage

Pollution Liability Coverage

Product Liability Coverage

Commercial Umbrella Liability

Contractors Installation Floater

Contractors Equipment

Cargo-in-Transit & Goods-in-Transit


Commercial Crime


Surety Bonds