Construction · Insurance Term
Contractors Equipment Coverage (Contractor's Equipment Floater)
Definition
Contractors equipment coverage insures movable machinery and tools, such as excavators, loaders, scaffolding and generators, against physical loss at job sites, in storage or in transit. It is an inland marine coverage written apart from a building policy, which usually doesn't cover mobile equipment away from your premises.
In Plain English
A standard property policy is built for buildings and the contents inside them. Equipment that moves from site to site needs inland marine coverage, which follows the property wherever it goes. Contractors equipment forms are often written on a schedule that lists each machine and its value, with a separate amount for small tools.
Developers who self-perform work, and owners who keep equipment to maintain large properties, may need it. Job-site theft, fire, overturn and vandalism are common causes of loss. Many forms also offer rental reimbursement and coverage for equipment you rent or borrow.
This coverage is separate from builders risk insurance, which covers the building under construction, not the tools used to build it. Check the deductible and the valuation basis, since older machines are often insured at actual cash value.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical and simplified: An owner who manages several properties keeps a $60,000 skid steer and $15,000 of tools. Thieves take the skid steer from a job site over a weekend. A scheduled contractors equipment policy may pay its insured value, minus a $1,000 deductible, while the property policy on the owner's office would usually not respond.
What to Watch For
- Keep an up-to-date schedule with serial numbers, model years and values for each piece of equipment.
- Ask whether rented or borrowed equipment is covered and whether the rental contract requires it.
- Confirm whether each item is valued at replacement cost or actual cash value.
- Check theft conditions, such as requirements for locked storage or anti-theft devices.
Last updated October 14, 2026 · Primesure editorial team · How We Write