Your tools are your livelihood. That circular saw, impact driver set, tile cutter, and fully stocked van represent thousands of dollars in investment—and without them, you can't work. But here's the problem: your standard business insurance probably doesn't cover those tools when you're driving between jobs, working on someone's property, or storing equipment at a job site overnight. That's where equipment and tools insurance comes in.
Also called inland marine insurance, this coverage protects your gear wherever your work takes you. And given that construction businesses lose somewhere between $300 million and $1 billion worth of equipment to theft every year—with only 21% ever recovered—it's protection worth having.
What Is Inland Marine Insurance for Handymen?
The name sounds weird—why would a handyman need marine insurance? The term comes from cargo insurance that originally covered goods transported by ship. Today, inland marine insurance covers property that moves over land instead of staying in one place. For handymen, that means your tools and equipment are protected whether they're in your truck, at a customer's home, on a commercial job site, or temporarily stored somewhere other than your business location.
Standard commercial property insurance only covers equipment at your business premises. The moment you load that equipment into your van and drive to a job, your commercial property policy stops covering it. Inland marine insurance picks up where property coverage leaves off, following your tools wherever they go.
This coverage typically protects against theft, vandalism, fire, accidents, and natural disasters like floods or lightning strikes. So whether someone breaks into your truck overnight or a homeowner accidentally backs over your tile saw in their driveway, you're covered for replacement or repair costs.
Scheduled vs. Blanket Coverage: Which Do You Need?
When you buy tools and equipment insurance, you'll need to choose between two approaches: scheduled coverage or blanket coverage.
Scheduled coverage means listing out your high-value items individually—the make, model, year, and serial number of each piece of equipment. This works well if you have expensive specialized tools like a professional-grade laser level, a high-end compound miter saw, or a commercial wet tile saw. Each item gets its own coverage limit, and there's no question about whether it's covered if something happens.
Blanket coverage provides one total limit for all your tools and equipment without listing each item separately. This approach is simpler and works great for handymen with a large collection of smaller tools, hand tools, ladders, and general equipment. Instead of documenting every drill bit and wrench, you just insure everything up to a certain dollar amount—say $25,000 or $50,000.
Many handymen use a combination: blanket coverage for the general tool collection, with specific high-value items scheduled separately. This gives you the convenience of blanket coverage plus the certainty that your most expensive equipment is fully protected. It's worth noting that claims issues often arise when high-value tools aren't properly scheduled, resulting in lower claim payments than you'd expect.
What Does Tools and Equipment Insurance Actually Cost?
Good news: equipment insurance is one of the more affordable coverages for handymen. Most handyman businesses pay around $14 per month for contractor's tools and equipment insurance, which works out to about $169 annually. For context, that's significantly less than general liability insurance, which averages $67 per month for handymen.
Industry-wide, the average cost to insure $100,000 worth of equipment runs about $800 per year with a $1,000 deductible. Your actual premium depends on several factors: the total value of your equipment, what types of tools you own, where you work, your claims history, and the deductible you choose.
A handyman with basic power tools and hand tools stored in a sedan will pay less than someone hauling $30,000 worth of specialized equipment in a fully stocked cargo van. Higher deductibles—typically ranging from $500 to $1,500—can reduce your premiums by 15% to 22%. And here's a money-saving tip: bundling your tools and equipment coverage with general liability and other policies can save you 17% to 25% compared to buying each policy separately.
What Inland Marine Insurance Doesn't Cover
Before you assume all your tools are protected in every situation, understand the limitations. Inland marine insurance won't cover theft if your tools were left unattended or unsecured. If you leave your truck unlocked with equipment visible inside, or if you don't secure tools in a locked vehicle, trailer, or building overnight, your claim will likely be denied.
This coverage also doesn't protect against normal wear and tear, mechanical breakdowns, or damage from improper maintenance. If your drill dies because the motor wore out after years of heavy use, that's on you. Similarly, losses from fraud, intentional acts, or employee dishonesty are typically excluded.
These exclusions matter because they affect your daily work habits. You need to lock your vehicle every time, secure job sites when you leave, and take reasonable precautions to prevent theft. Insurance covers accidents and theft when you've been responsible—not carelessness.
How to Choose the Right Coverage for Your Business
Start by making an inventory of everything you own. Go through your truck, your garage, your storage area, and write down every tool and piece of equipment. Be thorough—ladders, toolboxes, hand tools, power tools, safety equipment, everything. Take photos and note serial numbers for high-value items.
Next, calculate the replacement cost—not what you paid years ago, but what it would cost to buy everything new today. This is your coverage amount. Don't underinsure yourself to save a few dollars on premiums. If you have $40,000 worth of equipment but only carry $20,000 in coverage, a total loss leaves you seriously underequipped.
Decide between scheduled and blanket coverage based on your tool mix. If you have five or six pieces of expensive equipment worth over $1,000 each, schedule those individually. Cover everything else with blanket coverage. This gives you the best of both worlds without unnecessary complexity.
Consider your deductible carefully. A higher deductible lowers your premium but means more out-of-pocket expense when you file a claim. For most handymen, a $500 to $1,000 deductible strikes the right balance between affordable premiums and manageable claim costs.
Getting Started with Equipment Insurance
Once you know what coverage you need, shop around. Get quotes from insurers who specialize in contractor and handyman coverage—they understand your business and can offer better rates than general business insurers. Ask about bundling discounts, especially if you're also buying general liability insurance or a business owner's policy.
When you get a policy, read the fine print. Understand what's covered, what's excluded, and what security measures you need to take to keep your coverage valid. Then update your equipment inventory at least once a year. As you buy new tools or upgrade equipment, make sure your coverage keeps pace.
Your tools represent years of investment and your ability to earn a living. For less than $200 a year, equipment and tools insurance protects that investment no matter where your work takes you. It's one of those coverages that seems unnecessary—until the day your van gets broken into or equipment walks off a job site. By then, it's too late. Get covered now, work with confidence, and know that if something happens to your gear, you'll be back in business quickly instead of scrambling to replace thousands of dollars of equipment out of pocket.
