Tools taken off-site are normally excluded, or included for only small limits, on your Commercial Property policy. As such, businesses need to have their larger offsite tools and equipment specifically listed on a Commercial policy as either Portable Tools or Contractor’s Equipment. Sometimes the smaller tools can be bundled into a blanket limit without needing a schedule, eg. $10,000 Blanket limit. 

However, larger items and larger valued items usually need to be scheduled. Scheduled means providing the Make, Model, Serial number, and value of the various items that leave the premises.

When there is an “insurance package” purchased, with an extension wording, typically there is a small amount of Portable Tools or Contractors Equipment automatically included in the wording.  In this case, we would only need to list items when the value exceeds the extension or if the item is over $1,000.00.

What are Portable Tools?

Portable Tools are typically defined as Portable Hand Tools. Something that is relatively easy to pick up and walk away with. Higher valued items (anything over $1,000) should be specifically scheduled, while lower valued items would have a Total of Miscellaneous Tools limit shown and not be required to be scheduled.

What is Contractors Equipment?

Contractors Equipment is typically defined as bigger equipment items, not so easily transported or walked away with. This could be Ladders, Scaffolding, Compressors, Band Saws, to Bobcats or Welders, etc. These items are typically scheduled by item, with smaller valued items like Ladders / Tarps shown as a blanket limit.

What does Contractors Equipment Insurance Cover?

If you are a Contractor, you know that losses for contractors are unfortunately not a rare event – theft being the most common. Whether it is theft from a vehicle, job site, theft of the entire vehicle – all of this is almost usual in this industry.  This coverage helps transfer the risk of large losses to the insurer, while the small losses (under the deductible) become the insured clients loss. Therefore, allowing you to get back to your job quicker and with less losses.

Finally, please note that depending on the insurer, the coverage offered on Tools or Equipment could be Actual Cash Value (ie. Subject to depreciation based on age, amount of use/condition, etc) or in some cases, Replacement Cost when under 3 or 5 years old. Insurer dependent. 

For more information about Portable Tools / Contractor’s Equipment and Laptops, do not hesitate to “Collis”.

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