Tools & Equipment Coverage

Step by step

1. A property policy is treated as granting only its off-premises extension, illustrated at $10,000 — and as granting nothing at all for property in or on a vehicle, which that extension expressly excludes.
2. Where a floater is carried with a stated limit, that limit is what responds. Where a floater is carried with no limit entered, no gap is illustrated: the limit is reported as a figure to confirm rather than assumed to cover the value.
3. Uncovered value = the tools value entered minus whichever of those applies, never below zero.
4. Tools left in vehicles, rented equipment and employee-owned tools are each checked separately, because each is decided by policy conditions rather than by the limit.
5. "Not sure" counts as not confirmed throughout — an unconfirmed condition cannot be relied on.

The formula

Uncovered = max(0, tools value − (floater limit, or the $10,000 off-premises extension where no floater is carried)); not illustrated where a floater is carried with no limit entered. Property in or on a vehicle = $0 from the property form.

Assumptions and their default values

Some of these change with the state you select.

Important disclosures

1. This tool is educational only. It illustrates potential exposure using the assumptions shown — it is not insurance advice, a price, or an offer of coverage, and it does not determine whether any coverage amount is right for you. Policy language varies; review your actual policy and discuss your situation with a licensed insurance professional.
2. Inland marine forms vary widely in what they cover and where. Some schedule individual items above a threshold, some cover only items listed, and most carry conditions on how property must be secured away from the premises.
3. The off-premises allowance is illustrated at the property-off-premises extension found on current standard (ISO) commercial property and businessowners forms. Older editions, carrier-specific forms and endorsements grant different amounts, and every edition of that extension excludes property in or on a vehicle — so nothing from the property form is illustrated for tools in a vehicle.
4. Theft from an unattended vehicle is excluded or conditioned on most forms. Where it is covered, conditions such as forced entry, a locked enclosed body, or overnight garaging commonly apply, and a claim can turn on them.
5. Employee-owned tools are generally not the business's property, so a business policy does not usually respond to their loss. Where a business agrees to make good employees' tools, that is a contractual undertaking rather than an insured one.
6. Rented and leased equipment is usually your responsibility under the rental agreement. Whether your policy responds, and up to what limit, is a separate question from what the agreement makes you liable for.