Equipment Floater Insurance in NYC
An equipment floater, sometimes called tool insurance or tools and equipment coverage, is inland marine coverage for tools and equipment that move: off the truck, onto a job site, into a storage container overnight, back onto the truck the next morning.
In most of the country that's a simple form. In New York City, where a single crew can hit two or three job sites in a day and where unattended sites are a known theft target, the details of how a floater is written, blanket versus scheduled, replacement cost versus actual cash value, what counts as "in transit", decide whether a claim actually pays what it costs to get back to work.
Coverage Includes
- ✓Portable tool coverage
- ✓Equipment in transit protection
- ✓Jobsite equipment coverage
- ✓Replacement cost coverage
- ✓Theft and vandalism protection
What an equipment floater covers
- Portable tools and small equipment, whether carried by hand or in a van
- Larger mobile equipment: mini excavators, skid steers, generators, compressors
- Equipment in transit between the shop, storage, and the job site
- Equipment left on an active job site, including overnight
- Rented or borrowed equipment you're contractually responsible for insuring
Why NYC equipment coverage is different
Job site theft is a distinct, high-frequency exposure here
Unattended construction sites in the boroughs are a known target for tool theft, both organized (resale rings targeting name-brand power tools) and opportunistic. Carriers underwrite this specifically: site security, whether equipment is locked in a container or job box overnight, and whether the site has any monitoring, all affect both pricing and how a claim gets evaluated. A "mysterious disappearance" claim (equipment gone, no sign of forced entry) is handled differently by different floater forms, and it's worth knowing which one you have before you need it.
Scheduled versus blanket coverage is where underinsurance hides
A blanket limit covering "all tools" sounds simple, but if the blanket limit hasn't been updated as the crew's tool inventory grew, a single bad job site can wipe out more value than the policy actually covers. High-value individual items (an excavator, a generator, a compressor) generally belong scheduled at their own value; smaller rotating tools belong on a blanket limit that gets checked at every renewal, not set once and left alone.
Rented equipment is a contract obligation, not just a good idea
Equipment rental companies operating in NYC routinely require the renter to insure the rented item for its full replacement value regardless of fault, as a condition of the rental agreement. Contractors who assume the rental company's own insurance covers a loss are often wrong, and the ones who decline the rental company's expensive daily damage waiver without confirming their own floater extends to rented equipment can end up covering a total loss out of pocket.
Valuation basis decides what a theft claim actually pays
Actual cash value settles based on depreciated worth. For power tools that lose value fast, an ACV settlement after a theft can leave a real gap versus the cost of replacing the same tool new. Replacement cost coverage costs more but is the only basis that gets a contractor back to a fully equipped crew without covering the difference themselves.
Transit exposure is higher for NYC crews than for a typical suburban contractor
A crew running between two or three sites in a single day, common in a dense market like this one, means more loading, unloading, and unattended-vehicle time than a contractor who parks at one site all week. Confirm that "in transit" coverage in your floater actually matches how your crew works, not how a generic policy assumes equipment moves.
What gets excluded that should not
- Wear and tear or mechanical breakdown, which floaters generally don't cover and which sometimes gets confused with a covered peril at claim time
- Rented equipment, left off the schedule because it was assumed to be the rental company's problem
- Employee tools, personally owned tools your crew brings to the job site, which usually aren't covered under the business's floater unless specifically endorsed
- Loss of use / rental reimbursement, missing from many policies, which means a damaged excavator gets replaced eventually but the cost of a temporary rental in the meantime comes out of pocket
- Named-peril forms that look comprehensive but exclude theft without forced entry, exactly the loss pattern most common on unattended NYC sites
Limits
Scheduled item limits should reflect current replacement cost, not purchase price from several years ago. Blanket limits for smaller tools should be reviewed against actual crew inventory at every renewal, since tool fleets tend to grow faster than the policy limit gets updated. Contractors working under GC contracts should confirm the floater's limits satisfy any contractual requirement to insure rented or borrowed equipment.
Who we write it for
Contractors and trades. Crews running tools and mobile equipment across multiple NYC job sites in a single week or even a single day. See our piece on protecting tools and equipment and our construction insurance guide.
Specialty trades with heavy tool dependence. Ceiling, wall, and finishing contractors whose equipment value sits disproportionately in portable tools rather than heavy machinery. See our page on ceiling and wall contractor insurance.
What drives the premium
Total equipment value, the mix of scheduled versus blanket items, theft frequency in the territories you work, site security practices, and claims history. Contractors who work primarily in territories with higher theft frequency will see that reflected in pricing. Send us your equipment list and we'll tell you whether your scheduled values and blanket limit are still accurate.
Frequently Asked Questions
- Isn't my equipment covered under general liability?
- No. GL covers third-party claims against you, not damage to or theft of your own property. That's what an equipment floater is for.
- Do I need to insure equipment I'm renting, not buying?
- Usually yes, as a condition of the rental agreement. Check your floater extends to rented equipment before declining the rental company's damage waiver.
- What's the difference between scheduled and blanket coverage?
- Scheduled items are individually listed at their own value, typically higher-value equipment. Blanket coverage sets one limit for a group of smaller tools. Most contractors need both.
- Does my floater cover tools stolen from a locked job site overnight?
- Depends on the form. Some cover theft with no sign of forced entry ("mysterious disappearance"); others require evidence of forced entry to pay a theft claim. Worth confirming which one you have.
- Is this the same as tool insurance?
- Yes. "Equipment floater" is the insurance industry's name for what's commonly called tool insurance or tools and equipment coverage. If you're searching for either term, this is the same product: coverage for your tools and mobile equipment against theft, damage, and loss, whether it's on the truck, on the job site, or in storage.
Get your policy checked
Send us your current equipment list and scheduled values. We'll tell you whether your blanket limit still matches your actual inventory and whether rented equipment is covered.