Damaged/destroyed: Covers replacement of tools and equipment that are damaged or destroyed by work incidents.What Does Contractor Tools and Equipment Insurance Cover?Ī contractor tools and equipment policy protects the tools and equipment used by your contractors on the job from everyday damage by a covered accident. Having coverage could mean the difference between your business being able to continue smooth operation and having to close its doors during unforeseen maintenance, or permanently, due to financial loss. Projects could easily result in damage to your tools or equipment, or they could be the target of theft or vandalism. Well, mainly because of the nature of the contracting business - jobs involve high-risk activities and the use of costly tools and equipment. Why Do I Need Contractor Tools and Equipment Insurance? It's also a good idea to have it, because of the extreme expense of much of the tools and equipment used for contracting work, which could mean financial ruin to replace, without coverage. However, coverage is usually mandatory when renting or leasing equipment. Most contractors are required to carry general liability insurance (which protects third parties from property damage or injury), but extra coverage is typically optional. Is Contractor Tools and Equipment Insurance Mandatory? Other equipment: Workbenches, sawhorses, etc.Gear: Uniforms and other clothing used for jobs - goggles, hard hats, gloves, etc.Heavy equipment: Backhoes, excavators, skid loaders, bulldozers, cement mixers, etc.Small vehicles: Forklifts, tractors, etc.High-end power tools: Nail guns, welders, electric drills, etc.Hand tools: Hammers, wire strippers, tape measures, screwdrivers, etc.Request a quote What Qualifies as Contractor Tools and Equipment?