Tools & Equipment Insurance
for California Contractors

Tools stolen from a locked work truck overnight at a job site in San Diego. Replacement cost: $4,200. Paid in full after $500 deductible.

Power tools and a generator stolen from an unlocked job site in Los Angeles. Blanket floater covered $8,500 in replacement costs.

A $12,000 compressor damaged when a contractor's trailer overturned on the 5 freeway. Transit coverage paid for full replacement.

Tools stored in a rented storage unit destroyed in a fire. Inland Marine policy covered $18,000 in equipment — homeowner's policy would not have covered business tools.

Does my General Liability policy cover stolen tools?

No — General Liability insurance covers third-party bodily injury and property damage claims made against you. It does not cover your own tools, equipment, or machinery. If your tools are stolen from your truck, job site, or storage unit, only a Tools & Equipment (Inland Marine) policy will pay for replacement. This is the most common coverage gap we see in California contractor policies.

What does Tools & Equipment insurance cover?

A Tools & Equipment policy (also called Inland Marine or Contractor's Equipment Floater) covers your owned tools, equipment, and machinery against theft, accidental damage, fire, vandalism, and weather events. Coverage applies whether the equipment is at a job site, in your truck, in transit, or in storage. Some policies also cover rented or borrowed equipment and provide rental reimbursement while your equipment is being repaired.

How much does tools and equipment insurance cost in California?

For most California contractors, Tools & Equipment insurance costs $300–$800/year for basic hand tools and power tools up to $25,000 in value. Contractors with heavy equipment (excavators, lifts, compressors) typically pay $800–$2,500/year depending on total equipment value. Premiums are based on the total scheduled value of equipment, deductible chosen, and your claims history.

Is there a per-tool limit I should know about?

Yes — most policies have a per-item limit (typically $1,500–$5,000 per tool) unless you specifically schedule high-value items. If you have a $8,000 laser level or a $15,000 specialty saw, you should schedule those items individually to ensure full replacement value. Asena Capital reviews your equipment list and makes sure high-value items are properly scheduled.

Does tools insurance cover equipment left overnight on a job site?

It depends on the policy. Most standard Tools & Equipment policies cover theft from job sites, but some require that equipment be locked or secured. Policies vary on whether they cover unattended equipment overnight. We review the specific policy language with you and recommend policies that provide the broadest job-site theft coverage for California contractors.

Can I add tools coverage to my existing GL or BOP policy?

Yes — in many cases, Tools & Equipment coverage can be added as an endorsement to a Business Owner's Policy (BOP) or written as a standalone Inland Marine floater. For contractors with modest tool values (under $10,000), adding it to a BOP is often the most cost-effective option. For contractors with significant equipment fleets, a standalone Inland Marine policy typically provides broader coverage and higher limits.

What is the difference between 'scheduled' and 'blanket' coverage?

Scheduled coverage lists each piece of equipment individually with its own value and provides the most precise protection for high-value items. Blanket coverage covers all tools and equipment up to a total limit without itemizing each piece — simpler to manage but may leave gaps if a single item exceeds the per-item sublimit. Most contractors benefit from a hybrid approach: blanket coverage for general hand tools with scheduled coverage for high-value specialty equipment.