Here's something most roofing contractors learn the hard way: your standard business property insurance stops protecting your equipment the moment it leaves your shop. That $15,000 worth of tools loaded in your truck? The scaffolding system at the job site? The compressor, nailers, and tear-off equipment you depend on every day? None of it's covered once it hits the road. This is where inland marine insurance comes in, and if you're running a roofing business without it, you're taking a massive financial gamble.
The reality is stark: construction sites lose about $1 billion in equipment to theft every year, and fewer than 25% of stolen items are ever recovered. For roofing contractors who move between job sites constantly, that risk multiplies. You're not just storing equipment in one secure location—you're hauling thousands of dollars worth of tools across town daily, leaving them on residential properties, and trusting they'll still be there when your crew shows up the next morning.
What Inland Marine Insurance Actually Covers
Despite the confusing name that has nothing to do with boats, inland marine insurance is specifically designed to protect property that moves. For roofing contractors, this means comprehensive coverage for your ladders, scaffolding systems, safety equipment, power tools, roofing nailers, compressors, tear-off equipment, and any other business property that regularly travels between locations. The coverage follows your equipment whether it's loaded in your truck, staged at a job site, or temporarily stored at a customer's property.
But here's what surprises many contractors: good inland marine policies also cover your roofing materials from the moment you take possession until they're installed. That includes shingles, underlayment, flashing, fasteners, and everything else whether it's stored at your shop, loaded on vehicles, or staged at job sites. The policy protects against theft, vandalism, fire, weather damage, and accidental damage. If a storm blows through overnight and ruins your material delivery, or if someone backs a truck into your staged supplies, you're covered.
Scheduled vs. Blanket Coverage: Choosing the Right Approach
When you're setting up inland marine coverage, you'll need to choose between two approaches—or more likely, use both. Scheduled coverage means listing specific high-value items individually on your policy with detailed information like serial numbers, descriptions, and agreed-upon values. This is essential for expensive equipment like your truck-mounted crane, commercial-grade compressors, or specialized roofing equipment worth thousands of dollars each. If something happens to a scheduled item, there's no question about what it was worth or whether it was covered.
Blanket coverage, on the other hand, gives you a total limit that covers all your miscellaneous tools and equipment without listing each item individually. This makes sense for the dozens of smaller tools most roofing crews carry—drills, hammers, chalk lines, measuring tools, safety harnesses, and everything else that would be impractical to schedule separately. Many insurers use a threshold approach where only items above a certain value (often $5,000) need to be scheduled, while everything else falls under blanket coverage.
Most roofing contractors benefit from a hybrid model. Schedule your unique, high-value items to ensure accurate limits and proper valuation. Use blanket coverage for groups of lower-value tools and general inventory. This approach gives you the best protection at a reasonable cost, and it simplifies the claims process when something goes wrong.
The Real Cost and Why It's Worth Every Penny
Tools and equipment insurance typically costs construction businesses around $14 to $67 per month, with the average landing at about $14 monthly or $169 annually for basic coverage protecting equipment valued at $10,000 or less. For more comprehensive coverage protecting up to $100,000 worth of equipment, you're looking at the higher end of that range. Materials coverage usually runs 1% to 3% of covered values annually, while equipment coverage for smaller tools might cost up to $3 per $100 of coverage.
Now, compare that to what you'd lose in a single theft incident. The average construction site theft in Los Angeles runs $35,000 per incident. Stolen trucks average over $40,000 per loss. Even a modest equipment theft from your job site could easily hit $10,000 or more once you add up all the tools, safety equipment, and materials. And here's the kicker: many of these losses fall under insurance deductibles, meaning contractors absorb the direct cost plus project delays, increased future premiums, and potential reputation damage from missing deadlines.
The math is simple: paying $200 to $800 annually to protect $20,000 to $100,000 in equipment isn't optional insurance—it's basic business sense. One major loss could put you out of business. The coverage pays for itself the first time you avoid eating a five-figure theft loss.
How to Get Started with Equipment Coverage
Start by creating a comprehensive equipment inventory. Document everything: purchase dates, current values, serial numbers, and photos. For your high-value items, gather receipts and any warranty information. This inventory serves double duty—it helps you determine how much coverage you need and becomes essential documentation if you ever file a claim.
Next, talk to an insurance agent who specializes in contractor coverage. Don't just add inland marine as an afterthought to your general liability policy—make sure you're getting coverage that actually matches your operation. Discuss whether you need coverage for rented or leased equipment (often excluded from standard policies), whether your materials need coverage in addition to tools, and what deductible makes sense for your budget and risk tolerance.
Review your coverage annually as your equipment inventory changes. That new $8,000 compressor you bought? Add it to your schedule. The old scaffolding system you sold? Remove it. Keeping your policy current ensures you're not overpaying for coverage you don't need or, worse, discovering you're underinsured when you file a claim. Your roofing business depends on your equipment. Protecting it isn't just smart—it's essential to staying operational when the inevitable happens.
