Mobile Equipment Coverage: Safeguards Your Movable Tools and Equipment—On and Off the Jobsite

Stolen loader? Storm-damaged excavator? Standard policies often fall short, leaving you exposed to costly losses. Mobile Equipment Coverage bridges the gap, protecting the equipment that keeps your business moving—whether on a construction site or in transit.

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When Mobile Equipment Coverage Makes the Difference

Real scenarios that show exactly when and how Mobile Equipment Coverage protects you.

Loader Theft in the Night

Mike, a landscaper, left his walk-behind loader at a secured jobsite overnight. By morning, it was gone—taken by thieves. His Mobile Equipment Coverage responded immediately, covering the $18,000 replacement cost. Instead of draining his business funds, Mike only paid his $1,000 deductible and had a new loader delivered within days.

Excavator Accident During Transport

Sarah, a general contractor, was moving her mini-excavator to a new project when the trailer jackknifed on a slick road, badly damaging the machinery. The Mobile Equipment policy covered the $37,500 repair after her $1,500 deductible. The insurer coordinated with a trusted repair shop, and Sarah’s crew was back to work the next week, avoiding costly delays.

Fire Damages Rental Equipment Fleet

When an accidental fire swept through a storage yard, James’s rental company lost several pieces of heavy equipment worth over $250,000. Mobile Equipment Coverage responded to the catastrophe, paying the actual cash value for all listed equipment minus deductibles. James avoided financial disaster and was able to rapidly rebuild his fleet.

Everything You Need to Know About Mobile Equipment Coverage

The complete picture: what's covered, what's not, and how to decide if you need it.

Mobile Equipment Coverage (Plain English)

Mobile Equipment Coverage protects valuable tools and machinery—like loaders, mini-excavators, or forklifts—wherever they're used. When your gear is stolen, damaged in transit, or suffers covered events, this coverage pays for repairs or replacement up to your policy’s stated limits. The key thing to understand is that it protects equipment that moves from job to job.

The Fine Print That Matters

Deductibles usually range from $500–$1,500 per claim. Coverage typically pays Actual Cash Value (ACV), reflecting wear and tear—not brand-new replacement cost. You’ll need to schedule each piece of covered equipment (list make, model, serial number, and value). Some higher-value items may require separate review or endorsements, and claims require proof of ownership and loss details. Not everything is covered—see exclusions below.

Mobile Equipment Coverage vs. Other Coverages

Mobile Equipment Coverage is NOT the same as commercial property coverage or auto insurance. Mobile Equipment Coverage covers equipment wherever it’s used (including offsite and in transit), while property coverage protects tools only at your listed business address, and auto insurance only covers vehicles—not movable gear. You typically need all three for complete protection.

Who Needs Mobile Equipment Coverage?

You typically need this coverage if:

  • You are using valuable, movable equipment for your business or contracting work
  • Your gear travels to multiple jobsites or is transported regularly

You might skip this coverage if:

  • Your tools are always kept at your insured business location and never leave site

Limits, Deductibles, and Options

Coverage limits are set based on the value of your equipment fleet—each item should be scheduled for its full present value. Deductible choices (typically $500, $1,000, or $1,500) affect both your premium and your risk at claim time. Higher deductibles lower your premium but mean more out-of-pocket at claim time. Some policies offer optional endorsements for specific perils or replacement cost coverage.

What's NOT Covered by Mobile Equipment Coverage

This coverage does NOT cover:

  • Wear and tear or mechanical breakdowns: Normal use isn’t covered
  • Unscheduled/undisclosed items: Only listed equipment is covered
  • Intentional damage, employee theft, or catastrophic events (like flood) unless added by endorsement

For these situations, you'd need equipment warranties, flood coverage, or crime policies.

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How Mobile Equipment Coverage Actually Works

Understanding exactly what happens when you file a Mobile Equipment claim—from start to finish.

Claims Process

What you Pay

Timeline

The Claims Process

  1. Report the Loss or Damage: Notify your advisor as soon as possible with details about how, when, and where the event occurred. Quick action helps protect your claim rights.
  2. Documentation and Assessment: Gather serial numbers, purchase records, and photos of the equipment. An adjuster will review your documentation, assess the situation, and confirm coverage applies.
  3. Repair or Replacement Approval: Once the loss is validated, you’ll get approval for repair or—as is common—reimbursement based on actual cash value (minus your deductible). The insurer may coordinate with reputable repair shops or suppliers.
  4. Resolution and Payment: After approval, funds are issued for replacement or repairs. Keep receipts and work with your advisor for a smooth experience from start to finish.

What You Pay

Your deductible—typically $500–$1,500 per claim—comes out of your pocket for each incident. Your premium covers continuous protection for your listed equipment. Choosing a higher deductible can lower your monthly costs, but be sure it’s an amount you could actually pay if needed. The rest is covered within policy limits—so what you pay is often much less than the the actual cost of replacement or repairs.

Timeline

Straightforward claims (like equipment theft or accident damage) often resolve within 7–14 days. Complex situations—like claims involving multiple items or disputed ownership—may take several weeks. Most clients find the process efficient and well communicated. The key is prompt reporting: The sooner you start, the faster you can recover and get back to work.

The Real Cost of Going Without Mobile Equipment Coverage

Understanding the real financial impact: what you pay for coverage vs. what you risk without it.

Common Theft

Annual Coverage Cost: $400

Scenario: A $20,000 compact loader is stolen from an open jobsite.

Without Coverage: $20,000 out of pocket

With Coverage: $1,000 deductible (plus your annual premium)

Protection Value: $19,000 saved in this scenario alone

Transport Accident

Annual Coverage Cost: $650

Scenario: $45,000 mini-excavator is damaged in a trailer rollover on the way to a project.

Without Coverage: $45,000 out of pocket

With Coverage: $1,500 deductible (plus your annual premium)

Protection Value: $43,500 saved in this scenario alone

Jobsite Fire

Annual Coverage Cost: $800

Scenario: Multiple pieces worth $100,000 are lost in a yard fire.

Without Coverage: $100,000 out of pocket

With Coverage: $2,000 deductibles (plus your annual premiums)

Protection Value: $98,000 saved—preventing financial crisis

The Economic Reality

For most businesses, Mobile Equipment Coverage costs $35–$65 per month—less than the price of a tank of fuel for a truck. A single incident can mean losses of $20,000–$100,000 or more, taking years to recover. The math is simple: Mobile Equipment Coverage pays for itself with one claim, and protects your ability to keep working.

4 Costly Mobile Equipment Coverage Mistakes to Avoid

Learn from others' mistakes—avoid these common errors that can leave you unprotected when you need coverage most.

Assuming Property or Auto Covers Equipment on All Job Sites

Many business owners believe their general property or auto policy covers mobile gear wherever it goes. In reality, these policies often leave equipment unprotected offsite or in transit. Instead, ensure all movable equipment is specifically insured with Mobile Equipment Coverage.

Insuring for Too Little—Or the Wrong Basis

It's easy to underestimate actual equipment value or forget that mobile policies usually pay actual cash value, not replacement cost. Underinsuring leaves you exposed to major loss at claim time. Instead, schedule all gear at current market value and update your list as your fleet changes.

Not Scheduling High-Value or Specialty Equipment

Failing to list (schedule) expensive or unique equipment can leave it uninsured. If it's not on your policy, it's not covered. Instead, work with your advisor to ensure every critical item is properly scheduled and documented.

Neglecting to Update Your Policy as Equipment Changes

Forget to add new purchases or remove sold gear? This can result in denied claims or wasted premium. Review your policy at least twice a year, especially after major acquisitions or sales, and keep your advisor informed so your coverage is always current.

Inland Marine Frequently Asked Questions.

Find answers to your most pressing insurance questions right here.

What does inland marine insurance cover?

Inland marine insurance covers movable property like tools, equipment, fine art, and goods while they’re in transit or at temporary locations. It can also include builder’s risk and certain instruments of communication and transportation.

Why is inland marine insurance important for my business?

Inland marine insurance is crucial in Colorado and Utah, where severe weather and frequent equipment movement put your valuable property at risk. It protects against high-cost losses from storms, theft, and transit incidents—helping your business avoid costly disruptions.

What is a contractor's equipment policy?

A contractor’s equipment policy is a type of inland marine insurance that covers your mobile tools and machinery—like skid steers, bulldozers, and compressors—against theft, damage, and other covered losses on the job, in transit, or in storage. It fills gaps left by property and auto policies so your gear stays protected wherever work takes you.

Does inland marine insurance cover theft?

Yes. Inland marine insurance typically covers theft of insured items in transit, on job sites, or in off-site storage—subject to your policy’s terms, deductibles, and any security conditions (like locked-vehicle requirements).

Do I need inland marine insurance if I have a BOP?

A Business Owner’s Policy (BOP) usually only covers property at your main location, leaving equipment and goods in transit or offsite at risk. Inland marine insurance fills these crucial gaps—especially important for Colorado and Utah businesses facing weather, theft, and transit perils.

Does builder's risk insurance cover tools and equipment?

Builder’s risk insurance rarely covers contractor tools or equipment. You typically need a separate inland marine policy for full protection in Colorado and Utah.

What are common exclusions in inland marine policies?

Common exclusions in inland marine insurance for Colorado and Utah include wear and tear, intentional damage, war, nuclear hazards, and certain weather events unless specifically endorsed. Always review your policy to know exactly what's not covered.

Why is it called "inland marine" insurance?

The term 'inland marine' insurance comes from its evolution out of ocean marine insurance, expanding coverage for goods and equipment transported 'inland'—across land rather than by sea.

Who needs inland marine insurance?

If your business regularly moves, transports, or stores equipment, tools, or goods off-site—such as contractors, vendors, or manufacturers—you likely need inland marine insurance. It covers valuable property wherever it goes, not just at your main location.

Can inland marine insurance cover electronic data and equipment?

Yes, inland marine insurance can cover electronic equipment such as computers, servers, and data processing devices, especially when these are transported or used off-site. Coverage for electronic data itself often requires specific endorsements.

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