Does Builders Risk Cover Tools & Equipment? What to Know

Builders risk insurance is a vital safeguard for construction projects across Texas, offering financial protection against unexpected losses during the building process. However, many contractors and property owners wonder if this coverage extends to tools and equipment used on-site.

What Does Builders Risk Insurance Typically Cover?

Builders risk insurance is designed to protect buildings and structures under construction from risks such as fire, theft, vandalism, and certain weather events. Standard policies generally cover:

• The structure itself (including materials and supplies on-site)
• Temporary structures (like scaffolding)
• Fixtures and equipment that become part of the finished project

However, coverage for tools and equipment is not always included.

Are Tools and Equipment Covered?

In most cases, builders risk insurance does not automatically cover contractors’ tools and equipment. These items are often considered separate from the building materials and permanent fixtures. As a result, losses involving hand tools, power tools, or mobile equipment may not be reimbursed under a standard builders risk policy.

To protect valuable tools and equipment, contractors and builders may need to secure inland marine insurance. This coverage offers financial protection for tools and equipment, even when transported between job sites.

How Our Team Can Help

TS Insurance works closely with Texas construction professionals to review builders risk policies and identify any coverage gaps. Our team can recommend tailored solutions so you can focus on your project with confidence.

If you have questions about builders risk insurance or want to make sure your tools and equipment are fully protected, contact us today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.