Tools & Equipment Insurance

Essential protection for your gear.

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construction

Construction

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Cleaning

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What is Tools & Equipment insurance?

What is Tools & Equipment insurance?

Your tools and equipment are essential to running your business. If they are stolen, lost or damaged, this coverage will get you back to work fast by paying for replacements or repairs.

Make sure your gear is protected all the time, everywhere — including in your vehicle, stored in a trailer or at a job site.

Tools and equipment insurance is available as an add-on to our general liability insurance for contractors.

 

From power tools to safety supplies, if it’s essential to your work, it’s essential to protect it.

Equipment damage

Equipment damage

An essential piece of heavy machinery gives out — days after the warranty expires.

Stolen tools

Stolen tools

A trailer of gear or equipment on a job site goes missing — and needs replacing — fast.

Borrowed gear

Borrowed gear

Another contractor loans you an expensive power tool that breaks and needs replacing.

Learn more about Tools & Equipment insurance

Who needs equipment insurance?

Some industries and professions that can benefit most from this insurance coverage include:

  • Landscaping

  • Construction trades

  • Cleaning and janitorial services

  • Contractors

  • Plumbers

  • HVAC professionals

  • Electricians

  • Carpenters

Tool and equipment insurance is a smart choice for anyone who brings their own equipment to different locations to get a job done.

What can insurance for tools and equipment cover?

  • Employee tools and equipment.

  • Essential work clothing and safety gear.

  • Equipment or tools you’ve borrowed from someone else to use at the job site.

Some examples of tools and equipment that could be covered by your policy include:

  • Sanding power tools

  • Saws

  • Laser levels

  • Dust-control systems

  • Ladders and workbenches

  • Power drills

  • Blowtorches

  • CNC routers

  • Oscillating multi-tools

  • Concrete moisture meter

  • Stand lights

  • Hearing protection

  • Helmets and safety gear

  • Power tubing cutters

What’s not covered by contractors equipment insurance?

Tool and equipment insurance covers a lot if your tools go missing — but it won’t cover everything.

Be sure to check your policy for everything that will and won’t be covered. But some instances where tools and equipment insurance won’t provide coverage include:

  • Corrosion, rust or wear and tear. If your power cutter is so rusted it’s no longer usable, it wouldn’t be covered by your policy.

  • Equipment you rent from someone else. Rental equipment such as a wood chipper isn’t usually covered by your policy, but you could opt for insurance through the rental company directly.

  • Costs beyond the limit of your policy. Read your policy carefully to understand its limits.

How much does insurance for tools and equipment cost?

Tools and equipment insurance is an addition to NEXT’s general liability insurance policy.

Basic tools and equipment coverage can start at just $19 a month.

And if you bundle general liability with an additional policy, such as workers’ compensation insurance to cover work-related injuries or illnesses for your employees, you could save up to 10%.

Your specific commercial insurance cost is determined by several factors, including:

  • The type of work you do

  • Number of employees

  • Your claims history

  • Your work experience

  • The limits you choose

  • The state where you work

Get a free quote for T&E with general liability online to see specific costs for your business.

How do you get Tool and Equipment insurance at NEXT?

You can buy tools and equipment insurance as an add-on to your general liability coverage 100% online in about 10 minutes.

Simply start a free quote to see options for your business. We’ll ask you a few questions and recommend coverage options.

If you like what you see, you can adjust the package limits and buy online. You’re insured immediately after payment, and you’ll have access to your certificate of insurance at no extra cost.

Start a free quote with NEXT today.

 
Let’s find the coverage you need for your business
Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.
General Liability insurance
General Liability
Protect yourself from accidents that cause physical injury or damaged property.
Professional Liability or Error and Omissions Insurance
Professional Liability/E&O
Shield yourself from lawsuits that claim your work errors caused financial losses.
Workers' Compensation Insurance
Workers’ Compensation
Cover medical bills and lost wages if your employees have an accident at work.
Commercial Auto Insurance
Commercial Auto
Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.
Tools & Equipment Insurance
Tools & Equipment
Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.
Commercial Property Insurance
Commercial Property
Keep your building, inventory and equipment protected from fire or water damage.
Business Owner’s Policy Insurance
Business Owner’s Policy
Combine general liability and commercial property into one policy to protect your business.
 

Why over 500,000 businesses choose NEXT

Business insurance in less than 10 minutes

Get insurance in less than 10 minutes and you can save up to 25% in discounts*

Tailored business insurance

Unique, flexible coverage with easy monthly payments

Get business insurance online

Do it all 100% online or talk to a licensed U.S.-based advisor

 

NEXT Insurance reviews

I am so excited
I am totally excited about my new insurance for my small business. I am happy that the price was in a range that I can afford, the terms were easy to understand and it was so simple to purchase my first policy. I look forward to doing business with you in the future.
Curzella J.
Easiest insurance purchase – EVER!
I was looking around trying to compare insurance and I am so lucky I found NEXT. I was able to compare levels of coverage, and all the options, without pressure from a salesperson or time limits. I was able to check out prices and it was more coverage for less than the “traditional” company I looked at.
Michael W.
Happy small business owner!
I needed liability insurance for my new small business brick & mortar location. I got the run around from another company, but NEXT provided a competitive insurance quote in a timely manner. I now have the insurance that I need and it was stress-free!
Nicole E.
 

See what NEXT can do for your business

 
* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
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© 2025 Next Insurance, Inc. 975 California Ave, Palo Alto, CA 94304, United States
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Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.

** Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim.

Any starting prices or premiums represented before an actual customer quote are not guaranteed and are representations of existing premiums of active policies as of December 6, 2023. To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.