Usually not, unless you have an inland marine policy. Your commercial auto policy covers the truck, not what is inside it. General liability covers damage you do to other people’s property, not your own. And a homeowners or renters policy typically limits or excludes business property, especially away from home. The coverage that actually pays for stolen tools and equipment is a contractor’s tools and equipment floater, a type of inland marine insurance. Here is how it works and the fine print that decides a theft claim.
Which policy covers what
| Policy | Pays for stolen tools? |
|---|---|
| Commercial auto | No. It covers the vehicle, including a broken window from the break-in, but not the tools inside. |
| General liability | No. It covers injury and damage to others, not your own property. |
| Homeowners or renters | Rarely. Business property is usually limited or excluded, especially off premises. |
| Business property (in a business owner’s policy) | Mainly at your premises. Coverage away from your shop is often a small sublimit, if any. |
| Inland marine tools & equipment floater | Yes, at the jobsite, in the truck and in transit, subject to the policy’s theft conditions. |
“Floater” means the coverage follows the property wherever it goes. That is the whole point for contractors, whose most valuable equipment spends its life in a truck bed, a trailer or a jobsite gang box. Our inland marine page covers the other uses, like installation floaters and equipment in transit.
The theft conditions that decide a claim
Most tool claims that get denied fail on the wording, not the theft. Read these parts of any floater before you need it:
Unattended vehicle conditions
Many policies cover theft from an unattended vehicle only if the vehicle was locked and there are visible signs of forced entry. Some also require that tools be in a locked, permanently attached toolbox or out of sight. Some exclude overnight theft from a vehicle unless it was in a locked garage or fenced lot. If your crew leaves tools in a truck overnight, this is the clause that matters most.
Mysterious disappearance
“I can’t find the saw” is usually not a covered theft. Policies commonly exclude losses with no evidence of theft, and inventory shortages discovered later. File a police report quickly; most policies require one for theft.
Scheduled vs. unscheduled equipment
Larger items, like a compact track loader, a generator or a laser level, are usually scheduled: listed by description and serial number with a stated value. Hand and power tools are typically covered as unscheduled property up to a blanket limit, often with a per-item cap such as $1,000 or $2,500. A $4,000 tool covered under a $1,000 per-item cap pays $1,000. Schedule anything expensive.
Replacement cost vs. actual cash value
Actual cash value pays what a used tool was worth on the day it was stolen, after depreciation. Replacement cost pays what it costs to buy a new one. On a truck full of three-year-old cordless tools the difference can be half the claim.
Employee tools and rented or borrowed equipment
Tools your employees own are often excluded or covered only by an added endorsement. Rented and borrowed equipment usually needs its own coverage limit. If the rental agreement makes you responsible for the equipment, check that your floater includes it before you sign.
The deductible
Deductibles on floaters often range from $250 to $1,000 or more. A low premium with a high deductible can mean most small thefts never get paid.
How to make a theft claim easy to pay
- Keep an inventory with photos, serial numbers and receipts. A phone video of the truck and trailer every few months works.
- Engrave or mark tools and register serial numbers with the manufacturer where you can.
- Use locked, bolted-down storage in the truck, and never leave tools visible overnight.
- Report the theft to police the same day and get the report number. Then call us.
- Update the schedule when you buy or sell equipment, so the policy matches what you actually own.
What a floater costs
Premium depends mainly on the total value you insure, the per-item limits, the deductible, where tools are kept overnight and your claims history. For a small contractor insuring a modest amount of tools, a floater is often one of the least expensive policies in the coverage stack, and it can be packaged with your general liability. Tell us what you carry and how you store it, and we will show you options from A-rated carriers.
Common questions
Does commercial auto insurance cover tools stolen from my truck?
No. Commercial auto covers the vehicle itself, including damage from a break-in, but not the tools or equipment inside it. Tools are covered by an inland marine contractor’s tools and equipment floater.
Does general liability insurance cover stolen tools?
No. General liability covers bodily injury and property damage you cause to others. It does not cover your own tools or equipment.
What insurance covers contractor tools stolen from a jobsite or vehicle?
An inland marine contractor’s tools and equipment floater. It follows the property to jobsites, vehicles and in transit, subject to the policy’s theft conditions, such as requiring a locked vehicle with signs of forced entry.
What is the difference between scheduled and unscheduled tools?
Scheduled equipment is listed individually with a description, serial number and stated value. Unscheduled tools are covered under a blanket limit, usually with a per-item cap. Expensive items should be scheduled so the per-item cap does not limit the claim.
General guidance for California contractors, not legal advice. Your policy wording, CSLB record and payroll govern.