Coverage guide

Tools and equipment insurance for electrical contractors

Your tools travel every day. An inland marine policy is designed to follow them to the shop, the van, and the job site.

What a tools and equipment floater covers

Hand and power tools, benders, threaders, and wire pullers
Meters, insulation testers, thermal cameras, and locators
Ladders, scaffolding, and scissor or boom lifts you own
Leased or rented equipment, if added
Equipment in transit and at job sites

Scheduled versus blanket coverage

High-value equipment such as lifts, trenchers, or specialty testers is usually scheduled with a serial number and value. Smaller tools are often covered under a blanket limit, sometimes with a maximum per item. Ask whether losses are settled at replacement cost or actual cash value, since depreciation can shrink a claim payment on older tools.

Installation floaters and builder's risk

Switchgear, transformers, panels, light fixtures, and wire reels can be worth more than your tools. If your contract makes you responsible for materials until they are installed and accepted, an installation floater covers them in storage, in transit, and on site. On larger projects, the owner or general contractor may carry builder's risk instead; check the contract to see who is responsible.

Theft prevention that insurers notice

Locked, alarmed vans and shop storage
Tool tracking tags or GPS on high-value equipment
Inventory lists with photos and serial numbers
Not leaving tools in vehicles overnight at job sites

Common gaps

Unattended vehicle exclusions, theft from unlocked vehicles, mysterious disappearance, and wear and tear are frequent limits on tool claims. Review the deductible as well; a high deductible may make small-tool claims impractical.

Request a quote or read about commercial auto for electricians.

Frequently asked questions

Does commercial auto cover tools in my van?

Usually not. The auto policy covers the vehicle; tools and equipment are normally covered under an inland marine tools or equipment floater.

What is the difference between scheduled and blanket tool coverage?

Scheduled coverage lists specific items with values, typically for expensive equipment. Blanket coverage insures smaller tools up to a total limit, often with a per-item cap.

Are materials on site covered before installation?

They can be, under an installation floater or builder's risk policy, depending on who is responsible for the materials under your contract.

More coverage guides

Last updated October 15, 2026 · How we research