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Stolen tools: does your contractor insurance cover your equipment?

Gerald Burns, Licensed Insurance Agent · July 2026

The truck gets broken into overnight and six thousand dollars of tools are gone. Most contractors assume their liability policy covers it. It doesn't. GL covers damage you cause to others — not your own gear.

The coverage you actually need

It's called inland marine — "tools and equipment" or "contractor's equipment" coverage. It's a separate policy or add-on that pays to replace your gear when it's stolen, damaged, or lost, whether it's on the job, in the truck, or back at the shop.

Scheduled vs. blanket — read the cap

Big items (a $12,000 skid steer) get "scheduled" — listed individually by value. Small tools go under a "blanket" limit with a per-item cap. If your best cordless setup is worth more than that per-item cap, the blanket won't fully replace it. Know the number before you need it.

What trips people up

• Leased or rented equipment often isn't covered unless you add it.
• Tools stolen from an unlocked vehicle may be excluded or limited.
• Wear and tear and mechanical breakdown aren't theft — that's different coverage.
• An actual-cash-value policy pays depreciated value; replacement cost pays what a new one costs today. For a working crew, replacement cost is usually worth it.

See our contractor insurance page for how this fits with the rest of your coverage.

One habit that pays off: photograph and list your gear now, with serial numbers. A theft claim goes faster when you can prove what you owned.