Absolutely! Contractors can include tools and equipment insurance as part of their contractors insurance policy. It is common for professionals such as plumbers, electricians, roofing contractors, HVAC technicians, and many, many others to require highly specialized contractors tools to do their job correctly. Many pieces of contractors equipment or tools can easily be added to an existing insurance policy or be included in a brand-new one. If you would like to know how the mechanisms that you use will fit into your contractor insurance policy, or would like a tools and equipment insurance quote, it is recommended that you speak with your Morison Insurance broker.

While tools and equipment insurance does a good job of covering its policyholders in a wide range of scenarios while also insuring several different types of businesses, there are situations where it cannot reimburse certain claims. These situations include the following:

• Situations where the tools & equipment in question were damaged by wear and tear and reached their expected lifespan.
• Situations where damage was intentionally done by the policyholder.
• Times when the damaged tool or equipment was not mentioned or included in the policy.
• Any time the incident that occurred is explicitly stated as not being covered in the policy.

Please note that these are not the only situations where your tools and equipment insurance might not be able to cover your claim.

The main difference between these two types of coverage is that tools and equipment insurance protects the policyholder in cases where the damage is caused by something external. This includes weather damage, a third-party dealing damage to the device, theft, and similar threats. Equipment breakdown insurance is commercial insurance designed to protect these devices from internal threats, such as unexplained engine malfunctions, power surges, electrical breakdowns, motor burnout, operator error, and similar threats. It is often recommended that to ensure you are protected from all threats, you should include both tools and equipment insurance, as well as equipment breakdown insurance when dealing with more complex, expensive equipment.

Commercial property insurance will be able to protect any adequately insured tools and equipment while they are being stored at the insured location if the policy contains commercial contents insurance. The first is that your company might not have an official physical location, you may not have commercial property insurance, leaving your valuable items exposed. Tools and equipment coverage is needed to protect your items while you and your employees are out on a job.

The main difference is that tools and equipment insurance is more all-encompassing than a standard warranty and will cover a broader range of situations. Warranties often do not cover situations such as user error, which insurance policies usually do. Warranties also frequently end before the life of the product is over. Also, warranties don't cover damage done to a business as a result of a breakdown, whereas insurance does.

Tools and equipment insurance is an aspect of business insurance in Ontario that allows businesses to have financial protection for their most valuable, specialized equipment. Similar to how commercial general liability insurance protects companies against liability charges and commercial auto insurance protects a company vehicle, a company's most valuable equipment can be protected with tools & equipment insurance. While something such as a standard hammer, screwdriver or wrench can easily be replaced out of pocket and isn't worth claiming, you likely have much more specialized equipment that would cost a lot more if it got damaged, stolen, or was otherwise unusable. 

A professional camera, a power tool, a set of specialized equipment for any trade or any other hard-to-acquire piece of equipment can easily cost a few thousand dollars to replace, which can be costly for anybody, especially those just starting out. Construction sites often have plenty of costly items that are exposed to accidental damage and possible theft. Tools and equipment insurance can cover these losses and more, meaning there is no need to pay such a heavy expense out of pocket, letting your business continue unimpeded. 

Anybody who uses expensive, specialized tools as part of their profession could use the protection provided by a tools and equipment insurance policy. Tradespeople, anyone in the construction industry, or anyone who uses heavy equipment in their role should get the protection of tools and equipment insurance due to the many perils it protects against. Also, no matter how good of a job you do in trying to prevent the theft of tools, materials and equipment, there's always the possibility that something could go wrong. There's also expensive construction equipment you don't want to risk needing to replace out of pocket. With tools and equipment insurance, you'll be covered if any of these events happen.