Tools & Equipment Insurance

Essential protection for your gear.

tools & equipment insurance

From power tools to safety supplies, if it’s essential to your work, it’s essential to protect it.

Damaged equipment

Damaged equipment

Gone too soon — the pump on your pressure washer gives out five days after the warranty expires.

Stolen tools

Stolen tools

You treat your crew to lunch, but come back to a trailer full of missing tools. Karma fail!

Borrowed gear

Borrowed gear

A compressor you borrowed from another contractor explodes out of nowhere.

Here’s everything you need to know about Tools & Equipment insurance:


What is Tools & Equipment insurance?

Your tools and equipment are essential to running your business. If they are stolen, lost or damaged, this coverage will get you back to work fast by paying for replacements or repairs.

Make sure your gear is protected all the time, everywhere — including in your vehicle, stored in a trailer or at a job site.

Tools and equipment insurance is available as an add-on to our general liability insurance for contractors and cleaning businesses.

If you’re ready to move forward, you can start a tools and equipment insurance quote today and review your options online in about 10 minutes.

Who needs Tools & Equipment insurance?

Tools and equipment insurance is a smart choice for anyone who brings their own equipment to different locations in order to get a job done. 

Industries and professions that can benefit most include: landscaping, construction, cleaning businesses, contractors, concrete and cement, plumbers, HVAC, janitorial services, electricians and carpenters.

Tools and equipment covered include: 

  • Sanding power tools
  • Saws
  • Laser levels
  • Dust-control systems 
  • Ladders and workbenches 
  • Power drills 
  • Blowtorches
  • CNC routers 
  • Oscillating multi-tools
  • Concrete moisture meter
  • Stand lights
  • Hearing protection
  • Helmets and safety gear
  • Power tubing cutters

Why is it important?

Without the right insurance, you would have to pay entirely out of pocket to replace or repair your gear. But with tools and equipment insurance, you can get help paying for your essential gear. 

You’ll be covered if:

Your equipment is stolen from a trailer

You’re working on the road, and staying at a local motel during the job. Some scoundrel breaks into the trailer you’re towing and takes all of your tools in the middle of the night.

Your tools are stolen from a job site

It’s Friday, and you’re feeling fancy, so you take the crew out for a long lunch break. When you get back, you’re ready for a food coma but instead, you realize your on-site shed was broken into. A generator and half of your specialty tools are missing.

Someone damages your equipment

Your employee got sloppy and accidentally punctured your air compressor. You’ll need to get a replacement before you can continue your project.

What does Tools & Equipment insurance cover?

Tools and equipment insurance provides financial help to protect equipment owned by you and employee tools or clothing. It can even protect borrowed equipment when you choose Select Pro or Pro Plus coverage.  

Equipment owned by you

Your generator is stolen from your storage space and you need a replacement.

Employee tools and clothing

Your employee’s electric power tools are damaged by a leak at a job site and need to be replaced.

Borrowed equipment

A compressor that you borrowed from another contractor explodes and needs to be replaced. (Note: This coverage is not offered with our basic coverage. Select Pro or Pro Plus.)

While general liability protects your business from expenses related to damaged property that belongs to someone else, your own tools and equipment would not be covered unless you have tools and equipment insurance.

What isn’t covered?

Tools and equipment insurance covers a lot — but it won’t provide coverage for corrosion, rust, wear and tear or rental equipment. If you do plan to rent equipment from someone else, you may want to opt for insurance through the rental company. 

There are certain instances where tools and equipment insurance won’t provide coverage, including:

Corrosion, rust or wear and tear

Your power cutter has been with you from the beginning, but it’s rusted to the point that it is no longer usable. Because the damage is related to the rust, it wouldn’t be covered by your policy.

Equipment you rent from someone else

You need a wood chipper for a last-minute landscaping job at a local university. Your NEXT policy won’t cover rentals, so you might want to opt for rental insurance from the company where you rent the chipper.

How much does it cost?

Tools and equipment insurance is offered as an addition to our general liability insurance policy. Simply select the coverage level that’s right for your business when you apply for a quote online.

Basic tools and equipment coverage can start at $12.50 a month. A Pro policy starts at $24.20 a month, or choose a Pro Plus policy for $45 month.

How do I get Tools & Equipment insurance?

With NEXT, you can purchase tools and equipment coverage online and get your certificate of insurance 10 minutes, or less. 

Start an instant quote to see options for your business. Here’s how the process works:

We’ll ask you some basic questions about your business and operations, including: 

  • Your industry
  • Where you do business
  • How many years you have owned the business
  • Number of employees
  • Expected annual revenue
  • Recent insurance and claims history

After you share your information, you’ll have instant access to a customized insurance quote for E&O and other recommended coverage. 

If you like what you see, you can adjust the package limits and make your purchase. Your insurance will begin immediately after payment, and you’ll have access to your certificate of insurance.

Start a free instant quote today.

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Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.
General Liability insurance
General Liability
Protect yourself from accidents that cause physical injury or damaged property.
Professional Liability or Error and Omissions Insurance
Professional Liability/E&O
Shield yourself from lawsuits that claim your work errors caused financial losses.
Workers' Compensation Insurance
Workers’ Compensation
Cover medical bills and lost wages if your employees have an accident at work.
Commercial Auto Insurance
Commercial Auto
Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.
Tools & Equipment Insurance
Tools & Equipment
Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.
Commercial Property Insurance
Commercial Property
Keep your building, inventory and equipment protected from fire or water damage.
Business Owner’s Policy Insurance
Business Owner’s Policy
Combine general liability and commercial property into one policy to protect your business.
* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
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Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.

Any starting prices or premiums represented before an actual customer quote are not guaranteed and are representations of existing premiums of active policies as of December 6, 2023. To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.