Glossary

Contractor's equipment

An inland marine coverage for the mobile machinery and power tools contractors move between job sites, which a standard property policy mostly leaves out.

Also called: contractors equipment floater, contractor's equipment coverage, contractors tools and equipment, mobile equipment floater

A contractor's equipment floater is an inland marine policy for the tools and machinery taken from site to site: excavators, skid steers, generators, compressors, power tools, scaffolding. A standard commercial property policy is built around a fixed location. The ISO building and personal property form (CP 00 10) lists vehicles and self-propelled machines that are licensed for public roads or operated principally away from the described premises among its property not covered, which puts a mobile excavator outside it by design.

Coverage is usually written one of two ways: a schedule that lists each item with a value, or a blanket limit for all equipment with a per-item cap. Valuation is where claims go wrong. Confirm whether items are paid at replacement cost or actual cash value, whether rented and borrowed equipment is covered, how small tools are limited, and what theft conditions apply to equipment left on a site or in a trailer.

Say a 9-person excavation company schedules a skid steer at $60,000 (a hypothetical). If it is stolen and the policy pays actual cash value, the check reflects its depreciated worth minus the deductible, not the price of a new one.

contractor's equipment insurance: covering tools, machinery and rentals covers rating and conditions. See also inland marine and blanket limit.

Last reviewed October 10, 2026

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Related terms

Inland marine Property coverage for goods in transit, movable equipment and certain specialty property, written outside the standard building and contents forms. Blanket limit A single property limit applied across several buildings, locations or types of property, so the insurer pays a loss at any one up to the total. Replacement cost A valuation basis that pays the cost to repair or replace damaged property with like kind and quality, without deducting for depreciation. Actual cash value A property valuation basis that pays the cost to replace damaged property minus depreciation for age and wear, not the price of a brand-new item. Builder's risk Property insurance for a building under construction or renovation, covering the structure, materials and temporary works until completion or occupancy.

Related guides

Contractor's equipment insurance: covering tools, machinery and rentals Contractor's equipment insurance is an inland marine floater for tools and machinery away from the shop: coverage, scheduling, valuation and theft conditions. Inland marine insurance for tools, equipment and goods in transit Inland marine insurance covers business property that moves or sits off premises: tools, equipment, goods in transit, fine art. How it works and how it differs.

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Related en español

Seguro de equipo de contratistas: herramientas, maquinaria y equipo rentado El seguro de equipo de contratistas es una póliza flotante de transporte terrestre para herramientas y maquinaria fuera del taller: cobertura, valuación y robo.