Protect the Equipment That Keeps Your Business Running
Whether you’re a contractor in New Braunfels, a landscaper in San Marcos, or a construction company serving Austin and San Antonio, your tools and equipment are essential to your livelihood. If those items are stolen, damaged, or destroyed, replacing them out of pocket can be expensive and may bring your business operations to a halt.
At Dowd Insurance Agency, we help Central Texas business owners protect the tools, machinery, and equipment they rely on every day with customized Tools and Equipment Insurance coverage.
What Is Tools and Equipment Insurance?
Tools and Equipment Insurance—often referred to as Contractor’s Equipment Insurance or Equipment Floater Coverage—helps protect portable business equipment against covered losses such as theft, vandalism, fire, and certain types of accidental damage.
Unlike a standard commercial property policy, which primarily protects property at a fixed location, tools and equipment coverage is designed for equipment that travels between jobsites, vehicles, storage facilities, and customer locations.
Examples of Covered Equipment
| Equipment Type | Examples |
| Hand Tools | Drills, saws, nail guns, power tools |
| Construction Equipment | Skid steers, excavators, trenchers |
| Landscaping Equipment | Mowers, trimmers, blowers |
| Surveying Equipment | GPS units, lasers, measuring devices |
| Specialized Equipment | Generators, compressors, welders |
| Mobile Equipment | Equipment transported between jobsites |
What Does Tools and Equipment Insurance Cover?
Coverage can be customized based on your business operations and equipment exposures.
| Coverage | What It Helps Protect Against |
| Theft Coverage | Stolen tools, equipment, and machinery |
| Fire Damage | Losses caused by fire and smoke |
| Vandalism | Intentional damage by third parties |
| Transportation Coverage | Damage occurring while equipment is being transported |
| Accidental Damage | Certain unexpected physical damage events |
| Replacement Cost Options | Replacing equipment with comparable new equipment rather than depreciated value |
Why Isn’t General Liability Insurance Enough?
This is a common misconception among business owners.
| General Liability Insurance | Tools & Equipment Insurance |
| Covers damage or injury caused to others | Covers your equipment and tools |
| Protects against lawsuits and liability claims | Protects against theft, damage, and covered losses |
| Does not typically cover your equipment | Specifically designed to protect business equipment |
Think of it this way: if your skid steer damages a customer’s property, General Liability may help. If someone steals the skid steer from a jobsite, Tools and Equipment Insurance may help cover the loss.
Who Needs Tools and Equipment Insurance?
Any business that relies on portable tools or equipment should consider this coverage.
Common industries include:
| Industry | Common Equipment Risks |
| General Contractors | Jobsite theft, transportation damage |
| Electricians | Stolen power tools |
| Plumbers | Equipment loss between service calls |
| HVAC Contractors | Damage to specialized diagnostic equipment |
| Landscapers | Theft of mowers and outdoor equipment |
| Excavation Companies | Damage to heavy equipment |
| Painters | Theft of sprayers and portable tools |
Frequently Asked Questions about Tools and Equipment Insurance
Does tools and equipment insurance cover equipment left at a jobsite?
In many cases, yes. Coverage often extends to equipment located at temporary worksites, subject to policy terms and limits.
Is rented equipment covered?
Some policies can provide coverage for rented or leased equipment, while others require additional endorsements. Coverage varies by insurer.
Does coverage apply inside work vehicles?
Many policies provide coverage for equipment stored in vehicles, although theft prevention requirements and coverage limitations may apply.
How is the value of my equipment determined?
Policies may settle claims using Actual Cash Value (depreciated value) or Replacement Cost coverage, depending on how the policy is structured.
Is tools and equipment insurance required by law?
Generally, no. However, many contractors, project owners, and municipalities may require proof of coverage before awarding contracts.
Protect Your Business Assets with Dowd Insurance Agency
A single theft or equipment loss can cost thousands of dollars and delay important projects. Tools and Equipment Insurance helps protect the investments you’ve made in your business and keeps you working when unexpected losses occur.
Dowd Insurance Agency proudly serves business owners throughout Central Texas, the Texas Hill Country, Austin, San Antonio, New Braunfels, San Marcos, Canyon Lake, and surrounding communities. Our team can help you compare coverage options and build a policy tailored to your equipment, operations, and budget.
Contact us today for a customized Tools and Equipment Insurance quote.
