How Much Does Tool Insurance Cost?
If you have the money to buy a sandwich from the local deli on your lunch break today, then you can probably afford to insure the tools and insurance to help you get the job done.
how much does tool insurance cost?
The median premium for a craft contractor’s tools and equipment insurance is $14 per month. that’s about $169 a year for a policy with a $5,000 limit.
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Several factors go into determining your policy rate, including:
- value of property
- coverage limits
- industry risk
- history of previous claims
- type of cover (named vs. open hazards)
- how often the team moves
The easiest way to find out exactly how much your tools and equipment insurance costs? just ask us! aegis specializes in contractor insurance policies and we’d love to show you how affordable protecting your tools can be.
what does tool insurance cover?
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Contractor tool insurance is a type of inland marine coverage. is designed to protect mobile tools and equipment wherever they are stored. (Unlike business property coverage, which typically covers equipment you keep inside your place of business.)
tool insurance replaces lost, damaged or stolen tools. If someone steals tools from your truck bed, for example, or if vandals damage expensive machinery left on the job site overnight, tool insurance can help you replace or repair your equipment without paying out of pocket. .
what the tool insurance does not cover
tool insurance does not cover everything. There are some situations where a tool may not be eligible for coverage or circumstances where a claim would be denied, such as:
- tool insurance is not designed to cover normal wear and tear.
- may not cover tools that are more than 5 years old.
- breakage or deliberate misuse is not covered by tool insurance.
- extremely high value equipment may require a separate policy.
how to save money on tool insurance
tool insurance is already an incredibly affordable way to protect the essential equipment you use to get the job done. but you may be able to save even more on tool insurance.
bundling coverage is a smart strategy that typically results in lower premium rates for business owners. Instead of having one policy with insurer a and a second policy with insurer b, most insurers will offer a discount if you combine multiple policies with the same company.
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Your policy type will affect your premium rates. A named peril policy only covers what is specifically mentioned in the policy. named perils policies will generally also include very specific exclusions. With a named peril policy, coverage only kicks in if the damage is the result of a peril (incident) explicitly listed in the policy.
On the other hand, an all risk or open risk policy covers everything except what is specifically listed as an exclusion in the policy. Because an open peril policy has broader coverage, it typically comes with a higher premium price tag than a named peril policy.
Your past claim history will also play a role in your premium costs, so it pays to make safety a priority within your business. If you can avoid insurance claims for preventable incidents, you can also avoid premium increases that follow a claim.
protect your equipment with tool insurance
tool insurance is one of many coverage options available to protect your assets and safeguard your craft contractor business against unforeseen events.
A contractor’s tools are a unique asset. you need them to get the job done, and they face many risks as they travel from job site to job site. Fortunately, tool insurance is an affordable policy for most contractors that ensures you won’t be out of pocket if your favorite tool runs out of luck.