Picture this: You arrive at a Monday morning job site, open your van, and realize everything's gone. Your pipe threader, your inspection camera, your entire collection of specialty wrenches—thousands of dollars in tools vanished over the weekend. And here's the gut punch: your commercial auto policy covers the broken window, but not a single wrench inside.
This nightmare scenario happens to plumbing contractors every single day. Work trucks are magnets for thieves because everyone knows what's inside: expensive diagnostic equipment, power tools, and specialized gear that's easy to resell. But there's a straightforward solution most plumbers don't know about: inland marine insurance, the coverage specifically designed to protect your tools and equipment wherever your business takes them.
Why Your Regular Business Insurance Won't Cut It
Most plumbing contractors assume their existing policies have them covered. They don't. Commercial property insurance protects equipment at your business location—your shop or office. The moment you load that pipe cutter into your truck and drive to a job site, you're outside the coverage zone. Your commercial auto policy covers the vehicle itself and maybe some personal items, but not your business equipment.
That's where inland marine insurance comes in. Despite the confusing name that sounds like it should involve boats, this coverage protects property that moves. It was originally created to cover goods transported by ships inland via rivers and canals, but it's evolved into the go-to protection for contractors who need their tools covered at job sites, in transit, and in temporary storage.
For plumbers specifically, this means coverage for everything from your basic pipe wrenches to expensive leak detection devices and inspection cameras. The policy kicks in whether a tool is stolen from your locked van overnight, damaged when a homeowner's dog knocks over your toolbox, or lost when your apprentice leaves it at the wrong job site.
The Real Cost of Tool Theft and Equipment Loss
Here's something that should get your attention: tool and equipment theft costs contractors hundreds of millions of dollars every year in the United States. Nearly 1,000 construction equipment pieces are stolen per month nationwide, with the average loss per incident hitting around $30,000 for larger equipment. But even small-scale theft hits plumbers hard.
A plumber's van typically carries $5,000 to $15,000 worth of tools and equipment. Lose that overnight, and you're not just out the replacement cost—you're losing income while you scramble to buy new tools and reschedule jobs. Your clients don't care that you got robbed; they need their water heater installed today.
Beyond theft, there's damage and loss to worry about. Tools get dropped, run over, caught in floods, or damaged by fire. Job sites are chaotic environments where expensive equipment can disappear or get destroyed in a hundred different ways. Inland marine insurance covers all of these scenarios, protecting your investment so you can get back to work instead of back to the tool store with your credit card.
Scheduled vs. Blanket Coverage: Finding Your Sweet Spot
When you're shopping for inland marine insurance, you'll encounter two main approaches: scheduled coverage and blanket coverage. Understanding the difference helps you avoid overpaying while ensuring you're actually protected.
Scheduled coverage means you list specific high-value items individually on your policy with their own coverage limits. Think of your $3,000 inspection camera system or that specialized hydro-jetting machine you saved up for. Each item gets specifically named, described, and insured for a set amount. The upside? No deductible on scheduled items, and you get replacement cost coverage for exactly what you listed. The downside? It requires paperwork and updating whenever you buy major new equipment.
Blanket coverage, on the other hand, gives you a total limit that covers all your miscellaneous tools and equipment collectively. Instead of listing every pipe cutter, wrench, and drill individually, you get coverage up to an aggregate amount—say $20,000 total. This works perfectly for your everyday hand tools, power drills, and the dozens of smaller items you use regularly. It's simpler to manage and automatically covers new tools you buy, but you'll typically have a deductible when you file a claim.
Most smart plumbers use a combination of both. Schedule your big-ticket items like leak detection equipment, inspection cameras, and specialized machinery. Then get blanket coverage for everything else. This hybrid approach gives you comprehensive protection without the headache of documenting every single wrench in your toolbox.
What It Actually Costs to Protect Your Equipment
Here's the good news: inland marine insurance is surprisingly affordable, especially compared to replacing thousands of dollars in stolen tools out of pocket. According to 2025 data, plumbers typically pay between $19 and $50 per month for inland marine coverage, with the average landing around $224 annually for about $10,000 in coverage.
The premium you actually pay depends on several factors. Higher-value equipment costs more to insure—that $5,000 inspection camera will push your premium higher than basic hand tools. How frequently you use equipment matters too. Tools that leave your shop daily face more risk than occasionally-used specialty items. Your business's track record also plays a role. Established plumbing contractors with several years of claims-free operation get better rates than brand-new businesses.
You can control costs through smart choices. A higher deductible lowers your premium—if you can afford to cover the first $500 or $1,000 of a loss, you'll pay less monthly. Accurate inventory documentation helps too. Insurers reward contractors who maintain detailed equipment lists with serial numbers and photos. It proves you're organized and serious about loss prevention, which translates to lower risk and better rates.
Getting Started: What You Need to Know
Ready to protect your plumbing business equipment? Start by creating a complete inventory of everything you want covered. Go through your truck, your shop, and anywhere else you store tools. Document each item with serial numbers, purchase dates, and current values. Take photos of major equipment. This inventory serves two purposes: it helps you determine how much coverage you need, and it makes filing claims infinitely easier if something goes wrong.
Decide which items deserve scheduled coverage. Generally, anything worth more than $2,500-$3,000 individually should be scheduled. This includes inspection cameras, hydro-jetters, specialized diagnostic equipment, and high-end power tools. Everything else can go under blanket coverage, simplifying your policy and your life.
Talk to multiple insurance agents who specialize in contractor coverage. Inland marine insurance is often bundled with other business policies like general liability and commercial auto, and many insurers offer package discounts. Get quotes from at least three carriers and compare not just price but coverage details. Some policies include rented or leased equipment automatically; others charge extra. Some cover tools anywhere in the world; others limit coverage to specific geographic areas.
Finally, implement basic security measures. Insurers love contractors who lock trucks overnight, store expensive equipment securely, and engrave or mark tools with business information. These steps might even qualify you for premium discounts, and they definitely reduce your chance of filing a claim in the first place. Your goal isn't just to have insurance—it's to protect your business and never need to use it.
