Coverage Details

Inland Marine Insurance: Protecting Your Tools and Equipment

Your tools and equipment are the foundation of your business. Inland marine covers them whether they are on a truck, at a jobsite, in storage, or being installed.

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Understanding the Coverage

What This Coverage Does

Inland marine insurance is a category of property coverage that protects items in transit and mobile equipment that does not stay in one fixed location. Despite the name, it has nothing to do with water -- the term originated in the early days of insurance when marine policies were extended to cover goods transported over land. For contractors, inland marine primarily means tools, equipment, and materials that move between your yard, your vehicle, and multiple jobsites.

A general liability policy does not cover your own property -- only damage you cause to others. A commercial property policy covers equipment stored at a fixed location like your office or warehouse but typically excludes items regularly taken off premises. Inland marine fills the gap between those two coverages, protecting the items that are always moving.

For contractors, inland marine coverage is typically structured as either a contractors equipment floater -- covering tools and equipment -- or an installation floater -- covering materials that have been purchased but not yet permanently incorporated into a structure. Some programs combine both into a single policy with scheduled or blanket coverage options.

Real-World Risk

Why Contractors Need This Coverage

Tools and equipment represent a significant capital investment for any contractor. Theft from vehicles and jobsites is common in Florida, and equipment damaged on site can halt production.

Theft from a Jobsite

An unattended jobsite overnight becomes a target for tool theft. A contractor loses several thousand dollars in power tools, a generator, and specialty equipment. Without inland marine coverage, these losses are entirely out of pocket. GL does not cover your own property, and most commercial auto policies exclude cargo.

Equipment Damaged During Use

A track loader tips over an embankment and is severely damaged. Repairs cost $40,000. Inland marine coverage on the equipment pays for the repair or replacement after the deductible, keeping your fleet operational and your project on schedule.

Materials Stolen Before Installation

A shipment of copper pipe, wire, and fixtures for a plumbing project is stolen from the jobsite before installation. The installation floater portion of your inland marine policy covers the replacement cost of the materials, preventing a significant financial loss on a thin-margin project.

Policy Details

What Is Typically Covered and Not Covered

Typically Covered

  • Hand tools and power tools at jobsites and in vehicles
  • Heavy equipment (excavators, lifts, loaders) scheduled on the policy
  • Leased or rented equipment (check policy terms for details)
  • Materials in transit between supplier, yard, and jobsite
  • Materials staged at a jobsite awaiting installation
  • Equipment temporarily stored off your primary premises
  • Damage from collision, theft, vandalism, and accidental damage

Typically Not Covered

  • Equipment breakdown (mechanical failure requires a separate policy)
  • Normal wear and tear and gradual deterioration
  • Employee theft (requires a crime or fidelity policy)
  • Vehicles covered under commercial auto (vehicles are excluded)
  • Equipment after it has been permanently incorporated into a structure
  • Flood and earthquake (typically excluded without specific endorsement)
  • Items below a per-item threshold if using blanket coverage
Florida Requirements

Florida-Specific Considerations

Florida's jobsite theft rate is elevated compared to national averages, driven by high construction activity, warm weather that keeps sites running year-round, and the density of projects in urban areas like Miami, Orlando, and Tampa. Tools and copper materials are common targets. Florida contractors who leave equipment on active jobsites overnight do so at real risk, and inland marine coverage is one of the most cost-effective protections available.

Florida's hurricane season creates additional inland marine exposures. Wind-driven debris can damage equipment stored on open jobsites, and flooding from storm surge or heavy rain can damage materials staged at grade level. Most standard inland marine policies exclude flood, but endorsements are sometimes available for high-value equipment. Contractors working in coastal areas or low-lying locations should review their flood exposure specifically.

Leased and rented equipment is a major source of uninsured loss for Florida contractors. When you rent equipment from a dealer, the rental agreement typically makes you responsible for any damage during the rental period. Many dealers offer collision damage waivers at the counter, but these are often overpriced and limited in scope. A well-structured inland marine policy can extend to cover rented equipment at a fraction of the rental counter cost. Review your policy terms before accepting or declining rental coverage.

Complete Your Program

Related Coverages

General Liability

GL covers damage you cause to others' property, not your own. Inland marine and GL work together to cover your full property and liability exposure.

Commercial Auto

Covers your vehicles but not the tools and equipment in them. Inland marine fills the gap for cargo and equipment transported in work vehicles.

Builders Risk

Covers the structure under construction. Inland marine covers the tools and equipment used to build it. Both are often required on the same project.
Common Questions

Frequently Asked Questions

A contractors equipment floater covers your tools and equipment -- items you own and use repeatedly across multiple projects. An installation floater covers materials you have purchased that are destined for a specific project but have not yet been permanently installed. Both are forms of inland marine coverage and are often combined in a single policy.
Yes, if your policy includes tools and equipment coverage with theft as a covered cause of loss. Many policies include theft from a locked vehicle as a covered peril, though some carriers apply sublimits or require specific security measures like locked tool boxes or vehicle alarms. Review your policy's theft provisions carefully.
Scheduled coverage lists each item individually with its own value. Blanket coverage provides a single limit that applies to all covered items collectively. Blanket coverage is simpler to manage and ensures you are not underinsured if you acquire new equipment between policy renewals. Scheduled coverage is better for high-value individual pieces where you want guaranteed replacement on a specific item.
It can, but coverage varies by policy. Some policies automatically extend to rented or leased equipment up to a sublimit. Others require you to specifically schedule rented items. Review your policy before renting equipment to understand your coverage position, and avoid paying for rental counter damage waivers you do not need.
Commercial property insurance covers items at a fixed, scheduled location like your office or warehouse. Inland marine covers items that move -- equipment on jobsites, materials in transit, and tools stored in vehicles. For contractors whose property is rarely at a fixed location, inland marine is the primary tool coverage, while commercial property may cover your physical business location and equipment stored there permanently.

Protect Your Tools and Equipment with the Right Coverage

Your equipment is out in the field every day -- exposed to theft, weather, and accidental damage. Let us structure an inland marine program that covers your actual exposure at a fair price.

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