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ARI Blog: Article

Restoration Insurance Tips: Is there Insurance Coverage Available for Tools?


A contractor’s tools and equipment are often the lifeblood of their company. Loss or destruction of their tools could mean a tremendous loss to the company and its revenues. Given that fact, we are often asked about providing insurance coverage for tools and equipment in our clients’ vehicles or even left at a job site.


The first place most people start to insure all their property is through a standard property policy. And a property policy is excellent for personal property, inventory, tools and equipment, and machines – as long as the property never leaves the premises. A property insurance policy only provides insurance coverage for the property if it is within 1,000 feet of the location listed on the policy. Most property insurance policies exclude any property located away from the premises, whether in a company vehicle or at a job site.

How on Restoration Contractors Insure Their Tools?

A standard property insurance policy for restoration contractors isn’t sufficient to cover their tools and equipment, as most are usually inside a company vehicle or at the job site. For restoration contractors, we recommend purchasing a miscellaneous tools floater and equipment floater to protect your property that is located away from the premises.

What is a Miscellaneous Tools, Floater?

A miscellaneous tools floater covers tools and other small equipment away from your premises. The policy protects smaller equipment (less than $2,500 in value)—one of the benefits of the misc. tools floater is that some policies will even provide additional coverage for employees’ devices while in a company vehicle or t a job site.

What Is an Equipment Floater?

An equipment floater provides more coverage than the miscellaneous tools floater, but it is designed to cover larger tools and pieces of equipment – $5,000 in value and above. Typically, you will schedule your gear on this type of policy by listing the kind of piece, year, make, model, and replacement cost value. Your premium is then calculated based on the replacement cost amount listed on the equipment schedule.

Adding Coverage

You are adding a misc. tools floater or equipment floater insurance policy is quite simple. The easiest way is to take your existing inventory/equipment list and determine which items can be placed on the tools floater and which pieces need to be scheduled on an equipment floater. From there, you can work with your agent to provide insurance quotes on the items.


If you are a restoration contractor interested in insurance quotes for your equipment, please call our office.

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