Protect Your Tools on the Move: Why Contractor's Equipment Floater Coverage Matters

Your standard commercial property insurance policy typically covers tools, equipment, and machinery only while they are on your property—either stored or in use. The moment those items leave your premises—whether loaded onto a trailer, tucked in the back of a truck, or transported under their own power—coverage under your property policy becomes very limited or nonexistent.

This creates a significant gap for contractors, tradespeople, and businesses that rely on mobile equipment.

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Enter the Contractor's Equipment Floater 🚧

Also known as a contractor's equipment floater or part of an inland marine policy, this specialized coverage is designed for portable, high-value items that move from job site to job site.

It protects against:

• Theft

• Damage

• Fire

• Vandalism

• Accidents

Coverage applies while equipment is in transit, at temporary locations, or stored off-premises.

Who benefits most:

Construction, landscaping, HVAC, electrical, plumbing, and similar trades where tools and heavy machinery are constantly on the move.

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The Three Main Types of Contractor's Equipment Coverage

Most policies divide protection into three key categories based on the type of equipment exposure:

1. Scheduled Contractors Equipment 🏗️

• Covers high-value items you own outright or lease long-term

• Each item is individually listed with a specific limit—the maximum the insurer will pay for that item in a covered loss

• Includes a total or aggregate limit for all scheduled items in a single event

• Ideal for expensive assets like excavators, bulldozers, cranes, or specialized machinery

2. Unscheduled Contractors Equipment 🔧

• Ideal for smaller tools and items (typically $5,000 or less per piece)

• Coverage is applied under a blanket limit for all items in the category

• Includes a per-item sublimit and a total aggregate limit for multiple losses

• Perfect for hand tools, power tools, generators, and everyday gear without constantly updating your policy

3. Leased/Rented Contractors' Equipment 🚛

• Protects equipment rented or leased short-term from suppliers like United Rentals or Sunbelt Rentals

• Per-item and aggregate limits apply

• Rental equipment often has high replacement values, so ensure your limits match real-world costs

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Two Common (and Costly) Issues with Rented Equipment

1. Limits That Are Now Too Low

A $50,000 per-item limit might have sufficed a few years ago, but today, comparable units—especially larger or specialized models—easily reach $100,000 or more. Rental rates reflect this trend, with large boom lifts often commanding $250–$700 per day, highlighting the real asset value.

2. Aggregate Limits That Can't Handle Multiple Exposures

Imagine a busy job site with several high-value rented lifts exposed at once. If a fire, storm, or theft occurs, will your aggregate limit cover everything? Many default limits haven’t kept pace with today’s realities, leaving contractors exposed to large out-of-pocket costs.

💡 Pro Tip: Many rental companies include their own insurance or “damage waiver” fees in the rental agreement. If your floater provides adequate coverage, you can usually supply a Certificate of Insurance (COI) to waive these extra charges—putting real money back in your pocket.

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Why This Matters for Your Business

Without proper equipment floater coverage:

• A stolen trailer of tools,

• Damaged machinery in transit, or

• Destroyed rentals at a site

…can halt projects, rack up replacement costs, and hurt cash flow.

Inland marine policies like contractors' equipment floaters bridge the gap left by standard property insurance, offering flexible, tailored protection that follows your assets wherever work takes you.

If you haven’t reviewed your equipment coverage recently, now is the time. Equipment values have risen sharply, and outdated limits can turn a manageable incident into a major financial hit.

✅ Next Steps: 

Consult your insurance advisor to ensure your scheduled, unscheduled, and rented/leased limits match today’s realities—and explore opportunities for savings on hidden rental insurance fees.

Protecting what's mobile keeps your business moving.

Contact your Adams Insurance Agent to learn more!