Contractors Tools & Equipment Insurance Cost (2026)

Contractors Tools & Equipment Insurance Cost (2026)

Reviewed by Jason Wootton — California-licensed P&C Insurance Agent (CA #0I94454) Verify ↗
Edited by Justin Marks · Updated June 2026 · Disclosures ↓

Median small-business Inland Marine premium — the canonical product for contractors' tools, equipment, and materials in transit or on job sites — is $48/month ($576/year) for a typical $50K blanket Tools & Equipment Floater per Insureon's 2024 cost report. Cost scales roughly linearly with coverage limit: $10K limit ~$25/mo, $100K ~$95/mo, $250K ~$220/mo.

Why contractors need this: Commercial Property covers buildings + permanent improvements at a fixed location; General Liability covers third-party bodily-injury + property damage. Neither covers your own tools, equipment, and materials when they're on a job site, in your truck, in transit, or at a temporary location. That gap is exactly what Inland Marine / Tools & Equipment Floater fills. Loss of a $40K mini-excavator from a job site overnight = uncovered without this policy.

Settlement type matters. Actual Cash Value (ACV) is depreciated value — a 5-year-old $30K skid steer might pay out $12K. Replacement Cost (RC) pays the cost to buy new of like-kind quality, typically 5-15% premium uplift but materially better recovery. Specify RC at quote.

Interactive Industry-typical estimate, not a quote

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Industry-typical market ranges

Sourced from III, NCCI, BLS, Insureon, NerdWallet — not from our quote form

Market ranges from published industry sources:

  • Median Inland Marine (Tools & Equipment Floater): $48/month, $576/year for $50K blanket limit (Insureon 2024)
  • Premium by limit: $10K ~$25/mo · $50K ~$48/mo · $100K ~$95/mo · $250K ~$220/mo · $500K ~$400/mo (scales roughly linearly)
  • Replacement Cost vs ACV: RC adds 5-15% premium uplift but pays new-of-like-kind on a claim. ACV pays depreciated value. Always specify RC at quote for tools/equipment with 3+ year useful life
  • Scheduled vs blanket: blanket covers any tool/item up to the per-item sublimit (typically $10K-$25K); scheduled lists specific high-value items (mini-excavator, laser scanner, drone) with item-specific limits. Most policies are blanket with a scheduled rider for items >$10K
  • What Inland Marine covers: theft (most common claim — locked truck or job-site trailer), accidental damage on a job site, transit damage (your truck rolls, fire, collision), water/weather damage at temp locations, vandalism + storage. Some policies extend to rented/leased equipment + employee-owned tools used on the job
  • What it does NOT cover: mechanical breakdown (Equipment Breakdown coverage — separate), wear-and-tear, mysterious disappearance without forced entry, intentional acts, war + nuclear, items left in unlocked vehicles (some carriers exclude)
  • Per-item sublimits matter: a $30K skid steer on a $50K blanket might be sublimited to $15K. Check the per-item sublimit on quote — if you own anything >$15K, schedule it
  • Common contractor classes priced: general contractors, electricians, plumbers, HVAC, landscapers, roofers, painters, drywall, finish carpenters — premium varies by tool inventory + theft loss-rate by class

Recent rate-filing activity — 8 state filings across 1 commercial line

Commercial carriers can't charge whatever they want — each state's Department of Insurance must approve loss-cost filings before they take effect. These are primary-source, government-held records available on SERFF Filing Access. Cited below: the most-recent active filings affecting contractors tools & equipment (inland marine) operations, with the real SERFF tracking number for each.

Line State Overall change Effective SERFF tracking
WC NV -32.8% voluntary loss cost decrease (legislatively-driven; SB 317) Oct 1, 2026 NCCI-134895530
WC RI Overall -2.5% voluntary (industrial); -12.9% federal classes Aug 1, 2026 NCCI-134743616
WC TX Overall -3.8% adjustment to voluntary loss cost level Jul 1, 2026 NCCI-134745334
WC AR Overall -9.8% voluntary loss cost; -9.8% assigned risk market Jul 1, 2026 NCCI-134876672
WC OH -1% private-employer rate cut (~$10M aggregate; -50% cumulative since 2019) Jul 1, 2026 OH-BWC-2026-PA-1PCT
WC SC -0.4% voluntary loss cost decrease Apr 1, 2026 NCCI-134702984
WC NC Industrial -7.8% / Federal -12.8% overall loss cost level Apr 1, 2026 NCRB-NC-2026-LC
WC PA -1.22% overall collectible loss cost decrease Apr 1, 2026 PCRB-PA-2026-C-387

Source: SERFF Filing Access (filingaccess.serff.com) — the official public-records interface for state Department of Insurance filings. Loss-cost changes shown are the overall bureau-wide change in each state; the actual impact on your quote depends on your class code, payroll, experience modifier, and carrier-specific loss-cost multiplier (LCM). Get a quote for your exact numbers.

Contractors Tools & Equipment (Inland Marine) insurance cost by state — 40 states with filed-rate data

Filed-rate activity differs by state — each link below opens a contractors tools & equipment (inland marine)-specific page showing only that state's most-recent workers' comp and commercial-lines filings, with the real SERFF tracking numbers.

Want a deeper requirements view? See the standalone Contractors Tools & Equipment (Inland Marine) insurance requirements page →

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Frequently asked questions about contractors tools & equipment (inland marine) insurance cost

How much does Contractors Tools & Equipment insurance cost? +
Median is $48/month ($576/year) for $50K blanket limit per Insureon 2024. Premium scales roughly linearly: $10K ~$25/mo · $100K ~$95/mo · $250K ~$220/mo. Replacement Cost settlement adds 5-15% over ACV. Insureon 2024.
Why doesn't my General Liability or Commercial Property cover my tools? +
GL covers third-party bodily-injury + property damage — not your own equipment. Commercial Property covers buildings + permanent improvements at a fixed location — not tools/equipment in transit, at a job site, in your truck, or at temporary locations. That mobility gap is exactly what Inland Marine fills.
Should I get Actual Cash Value or Replacement Cost? +
Replacement Cost (RC) for anything with 3+ year useful life. ACV pays depreciated value — a 5-year-old $30K skid steer might pay $12K under ACV; under RC, you get the cost to buy new of like-kind quality. RC adds 5-15% premium but is the difference between staying in business and not after a major loss. Specify at quote.
What's the difference between blanket and scheduled coverage? +
Blanket covers any tool/item up to a per-item sublimit (typically $10K-$25K). Scheduled lists specific high-value items individually with their own limits. Most contractors run blanket + schedule items over $10K (mini-excavator, laser scanner, drone). Always check the per-item sublimit on a blanket policy — a $30K skid steer on $50K blanket with $15K sublimit only pays $15K.
What's NOT covered? +
Mechanical breakdown (Equipment Breakdown is separate), wear-and-tear, mysterious disappearance without evidence of forced entry, intentional acts, war + nuclear, and items left in unlocked vehicles (varies by carrier). Theft from a LOCKED truck or trailer IS covered; theft from an unlocked vehicle often isn't.

Related guides

📚 Terms used in this guide
📘 Educational, not advice. This cost page is general educational content reviewed by Jason Wootton, our California-licensed P&C Insurance Agent (CA License #0I94454). Insurance pricing varies by state, carrier, business specifics, and claims history. The ranges shown are not quotes — for actual numbers, get a real quote or consult a licensed insurance agent in your state.
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