How to Save Money on Tools and Equipment Insurance Coverage

You know that insurance coverage is important for your business. But paying for insurance can feel like, well, a real pain. You want to protect the tools and equipment that you need to do your job, but who wants to overpay for tools and equipment insurance?

You don’t want to break the bank having to replace your equipment when it is damaged or goes missing while on the job site, but you also don’t want to break the bank paying your policy premiums.

Ways you can save money on your tools and equipment coverage include:

  • Bundling policies
  • Raising deductibles
  • New employee vetting
  • Regular tools and equipment training
  • Making annual payments
  • Avoid small claims

How to Save Money on Tools and Equipment Insurance

Learn a few tricks on keeping your payments low while maintaining the necessary coverage to protect your tools and equipment.

Combined Insurance Policies Spell Savings

You can often get discounts for bundling your contractor policies together. Insurance providers will usually offer policy discounts when you opt to package multiple policies into one suite of coverage.

Look for competitive discounts by combining your tools and equipment coverage with other necessary contractor coverage such as general liability and commercial auto insurance.

Increase Deductibles to Shrink Payments

The deductible is the amount of money you have to pay out of pocket every time you file a claim. Your deductible amount is one factor that can affect your monthly premium payment amounts; in other words, increasing your deductibles can typically reduce your monthly insurance costs.

However, choosing to save money on payments by raising your deductible comes with its own financial risk. If the time comes that you have to make a claim, you’ll have to shell out more out-of-pocket before your insurance kicks in. Choose a deductible you can afford if something goes wrong. You don't want to risk putting the financial well-being of your business in peril to save a few bucks on payments.

Find the right balance between deductible amounts and premium payments and you could save some money on your tools and equipment coverage.


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Smart Hiring and Proper Training

Who is going to be using your business' tools and equipment?

Be sure you implement a new employee vetting process that ensures you are hiring a candidate that is trustworthy and safe in the workplace.

Before you bring someone on board, do your due diligence by:

  • Contacting references
  • Confirming employment history
  • Substantiating licenses and certifications
  • Performing drug tests
  • Running background checks
  • Checking driving records

Once you've hired a candidate you know you can trust, make sure they are trained on how to properly use your tools and equipment.

Hiring employees that you know won't have sticky fingers and making sure they know how to safely use tools and equipment on the job site will keep your claims down, as well as your premium amounts.

Bonus! This tip could also help lower your workers’ comp rates (as you avoid employee injuries) and commercial auto claims (putting safe, sober and dependable drivers behind the wheel of your company vehicles).

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Paying Upfront Pays Off

Choosing to pay your annual premium upfront, rather than making monthly payments, could save you money on your tools and equipment insurance.

The benefit of paying the entire balance for a year of insurance upfront usually includes a discounted rate, helping to cut the costs of coverage.

Don't Sweat the Small Stuff

Making claims on small items can end up costing you in the long run.

If you lose a hammer, go to the store and buy a replacement rather than filing a claim against your policy.

Why? The more claims you make, the higher your premium goes.

Save your policy claims for items that will break the bank to replace, so you don't end up spending more on your tools and insurance policy.

What Tools and Equipment Insurance Covers

Tools and equipment insurance covers losses that occur both while your assets are in transit and when they're on the job site.

Covering mobile property such as tools and equipment that move from one job site to the next, this policy covers losses for supplies, materials, tools, and equipment that include:

  • Loss
  • Theft
  • Damage
  • Vandals

Protect your contractor business from financial loss due to stolen, lost, or vandalized tools and equipment that are essential for you to get the job done.

Tools and equipment coverage is essential for contractors who take their business on the go. But that doesn’t mean you have to overpay for it. Talk to your agent to ensure that you are saving money wherever possible on your tools and equipment policy and rest easy knowing that your movable work assets are protected.




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40169 Truckee Airport Rd. Ste #203
Truckee, California 96161
Phone (800) 579-6369
Fax (530) 582-6007
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