Inland Marine Insurance for Contractors
Protect the tools, equipment, and materials your business depends on.
Contractors face property losses that go far beyond buildings and offices. Tools are transported daily, equipment is left at jobsites, and materials are often staged before installation. When those items are stolen, damaged, or destroyed, projects can stall and costs can add up quickly.
Inland Marine insurance is designed to help protect contractor equipment, tools, and job-related materials while they are in transit, at a jobsite, or temporarily stored away from a fixed location.
Who Inland Marine Coverage Is Designed For
Inland marine coverage is commonly used by:
- General contractors
- HVAC, electrical, plumbing, and mechanical contractors
- Remodelers and specialty trade contractors
- Subcontractors who own or transport tools and equipment
- Contractors responsible for materials prior to installation
If your business relies on mobile property or jobsite materials, inland marine coverage is often an essential part of your insurance program.
What Inland Marine Insurance Typically Covers
Inland marine policies for contractors are usually structured around three main coverage areas.
Contractor’s Equipment Coverage
This coverage is designed to help protect tools and equipment that you own and use for your operations.
Examples may include:
- Hand tools and power tools
- Generators, compressors, and welders
- Lifts, skid steers, and similar equipment
- Testing and diagnostic equipment
Coverage may apply while equipment is at a jobsite, in transit, or in temporary storage, depending on the policy terms.
Installation Floater Coverage
Installation floater coverage is designed to help protect materials and equipment that you are installing for a job.
Examples may include:
- HVAC units awaiting installation
- Electrical panels, wiring, and fixtures
- Cabinets, countertops, and flooring
- Plumbing fixtures and piping
This coverage may apply while materials are in transit, staged at the jobsite, and during installation, typically until the project is completed or accepted, based on policy wording.
Leased or Rented Equipment Coverage
When you rent or lease equipment, rental agreements often make you responsible for damage, theft, or loss.
Examples include:
- Scissor lifts and boom lifts
- Specialty or short-term rented equipment
- Rental compressors or generators
Leased or rented equipment coverage is designed to help address these exposures when your business is contractually responsible.
Common Coverage Gaps Contractors Should Understand
Inland marine coverage is not unlimited. Understanding common limitations can help avoid surprises at claim time.
Policies often exclude or limit coverage for:
- Normal wear and tear or gradual deterioration
- Mechanical or electrical breakdown
- Faulty workmanship or the cost to redo work
- Employee theft or dishonesty
- Unsecured or unattended vehicles
- Theft without evidence of forced entry
- Flood or earthquake unless specifically included
- Tools left at unsecured jobsites
Coverage terms, exclusions, and requirements vary by carrier and policy form.
Key Coverage Decisions That Matter
Blanket vs Scheduled Coverage
Some equipment may be scheduled individually with specific values, while smaller tools are often covered under a blanket limit. Many contractors use a combination of both.
Replacement Cost vs Actual Cash Value
Replacement cost coverage may help replace equipment with new items of similar kind and quality. Actual cash value coverage reflects depreciation and may result in lower claim payments.
Deductibles and Theft Controls
Deductibles and theft requirements can significantly impact claims. Storage methods, vehicle security, and jobsite controls are often reviewed by underwriters.
Real-World Claim Examples
A contractor’s work van is broken into overnight and multiple power tools are stolen. Contractor’s equipment coverage may respond, subject to policy requirements.
A trailer accident damages equipment being transported to a jobsite. Inland marine coverage may apply to the damaged equipment.
Materials are delivered and staged at a jobsite prior to installation and are damaged by water. Installation floater coverage may respond, depending on policy terms.
A rented lift is damaged during use and the rental contract requires full replacement value. Leased or rented equipment coverage may help address the loss.
Risk Management That Can Reduce Claims
Simple operational controls can help reduce losses and improve insurability:
- Maintain an updated equipment inventory with values and photos
- Use locked storage and secured jobsite containers
- Install tracking devices on high-value equipment
- Limit the amount of time materials sit uninstalled
- Review rental agreements before signing
How We Help Contractors Structure Inland Marine Coverage
We help contractors design inland marine coverage that aligns with how they operate by:
- Reviewing tools, equipment, and installation exposures
- Matching coverage forms to real-world jobsite practices
- Reviewing rental contract insurance requirements
- Helping avoid common coverage gaps and claim issues
Inland Marine Insurance FAQs for Contractors
Is inland marine coverage required for contractors?
Inland marine coverage is not legally required, but many contractors rely on it to protect tools, equipment, and materials that are not well covered under standard property policies. It is often required by contracts or lenders when equipment or materials are involved.
Does inland marine cover tools at a jobsite overnight?
Coverage depends on policy terms and jobsite security requirements. Many policies require tools to be stored in locked containers or secured areas. Theft without forced entry or from unsecured locations may be limited or excluded.
Are tools covered if they are stolen from a work truck?
Some inland marine policies may cover theft from vehicles, but coverage often depends on evidence of forced entry, locked vehicles, and how long the tools were left unattended. Coverage varies by carrier and policy form.
Does inland marine cover damage caused by my own employees?
Accidental damage to covered equipment may be included, but employee theft or dishonesty is typically excluded and handled under a separate crime policy.
Are rented or leased tools and equipment automatically covered?
Not always. Coverage for leased or rented equipment usually needs to be specifically included. Rental agreements often place responsibility for damage, theft, and loss of use on the contractor, which may exceed standard policy limits.
Does an installation floater cover materials after the job is complete?
Installation coverage typically ends once the work is completed or accepted by the owner, depending on the policy wording. Damage occurring after acceptance is often not covered.
Is faulty workmanship covered under inland marine?
The cost to repair or redo faulty workmanship is commonly excluded. Some policies may cover resulting damage to other covered property, but this varies by policy form.
Does inland marine cover wear and tear or equipment breakdown?
Normal wear and tear, mechanical breakdown, and electrical failure are commonly excluded. Separate equipment breakdown coverage may be needed depending on the exposure.
Do I need inland marine coverage if I am a subcontractor?
Subcontractors who own tools, transport equipment, or furnish materials often benefit from inland marine coverage. Subcontractors providing labor only may have different needs.
How are tools and equipment valued at claim time?
Valuation depends on whether coverage is written on a replacement cost or actual cash value basis. Actual cash value reflects depreciation and may result in lower claim payments.
How We Help Contractors Evaluate Inland Marine Risk
Inland marine losses are often the result of gaps between how coverage is written and how a contractor actually operates. Tools move between locations, materials sit on jobsites, and rental contracts can shift responsibility in ways that are easy to overlook.
We work with contractors to review:
- How tools and equipment are stored, transported, and secured
- Whether installation exposures exist before work is completed or accepted
- How leased or rented equipment contracts assign responsibility
- Where theft, transit, or jobsite damage is most likely to occur
- How coverage terms align with real-world practices
Our goal is not simply to place a policy, but to help reduce claim disputes and coverage surprises by aligning inland marine coverage with how your business actually functions.
Start With a Coverage Review, Not a Quote
Every contractor’s inland marine exposure is different. A meaningful conversation starts with understanding your equipment, materials, and jobsite practices before discussing limits or pricing.
wh
If you would like a review of your contractor’s equipment, installation, or rented equipment exposures, we can help identify potential gaps and determine whether inland marine coverage makes sense for your operation.
Coverage availability, terms, and conditions vary by insurer and policy form. All coverage is subject to underwriting approval and the actual policy language.
