How Much Does Tool Insurance Cost?

If you've got the cash to grab a sandwich from the local deli on your lunch break today, then you likely can afford to insure the tools and insurance that help you get the job done.

How Much Does Tool Insurance Cost?

The median premium for an artisan contractor's tools and equipment insurance is $14 per month. That’s around $169 per year for a policy with a $5,000 limit.

Several factors go into determining your policy rate, including:

  • Property value
  • Coverage limits
  • Industry risk
  • Past claims history
  • Coverage type (named perils vs. open perils)
  • How often the equipment is moved

The easiest way to find out exactly how much tools and equipment insurance costs? Just ask us! Aegis specializes in contractor insurance policies, and we'd love to show you just how affordable protecting your tools can be.



What Does Tool Insurance Cover?

Tool insurance for contractors is a type of inland marine coverage. It's designed to protect moveable tools and equipment wherever they are stored. (Unlike commercial property coverage, which typically covers the equipment you keep within your place of business.)

Tool insurance replaces tools that are lost, damaged, or stolen. If someone steals tools from the bed of your truck, for example, or vandals damage expensive machinery left at a job site overnight, tool insurance can help you replace or repair your equipment without paying out of pocket.

What's Not Covered by Tool Insurance

Tool insurance won't cover everything. There are some situations where a tool may not be eligible for coverage or circumstances where a claim would be denied, such as:

  • Tool insurance is not intended to cover normal wear or tear.
  • You may not be able to cover tools greater than 5 years old.
  • Deliberate breakage or misuse is not covered by tool insurance.
  • Extremely high-value equipment may require a separate policy.

How to Save Money on Tool Insurance

Tool insurance is already an incredibly affordable way to protect the essential equipment you use to get the job done. But you may be able to save even more on tool insurance.

Bundling coverage is a clever strategy that usually results in lower premium rates for business owners. Rather than having one policy with insurer A and a second policy with insurer B, most insurers will provide a discount if you bundle multiple policies with the same carrier.

Your policy type will impact your premium rates. A named-peril policy only covers what is specifically named in the policy. Named-peril policies will usually have very specific exclusions listed, as well. With a named peril policy, coverage only kicks in if the damage is a result of a peril (incident) listed explicitly within the policy.

On the other hand, an all-risk or open peril policy covers anything except what is specifically listed as an exclusion in the policy. Because an open-peril policy has broader coverage, it typically comes with a higher premium price tag than a named-peril policy.

Your past claims history will also play a role in your premium costs, so it pays to make safety a priority within your business. If you can avoid insurance claims from avoidable incidents, you can also avoid the premium increases that follow a claim.

Protect Your Equipment with Tool Insurance

Tool insurance is one of the many coverage options available to protect your assets and safeguard your artisan contractor business against unforeseen situations.

A contractor's tools are a unique asset. You need them to get the job done and they face many risks as they travel around from one work site to the next. Luckily, tool insurance is an affordable policy for most contractors that ensures you’re not out of pocket if your favorite tool runs out of luck.




Newsletter Signup

Aegis Insurance Markets Logo in White
An InterWest Insurance Services LLC Affiliate

40169 Truckee Airport Rd. Ste #203
Truckee, California 96161
Phone (800) 579-6369
Fax (530) 582-6007
License #0B01094