Inland marine insurance protects the tools, equipment, and materials that general contractors move between jobsites, store in trucks, or stage at temporary locations — property that a standard commercial property policy won't cover once it leaves a fixed address. Limits typically run $25,000 to $500,000+; annual premiums range from $800 to $15,000 depending on equipment value and trade scope.
Who this is for: General contractors, construction managers, and specialty subcontractors that own or lease tools, heavy equipment, or project materials that travel to and from jobsites.
TL;DR — Key Takeaways
- Commercial property covers your office and warehouse; inland marine covers everything that moves — your tools, equipment, and materials on the road and at the site.
- A standard BOP (Business Owners Policy) typically caps tool coverage at $2,500–$10,000 — far below what most GCs have on a single truck.
- Theft, accidental damage, fire, and transit losses are all standard inland marine perils; employee theft and mechanical breakdown are not.
- Blanket limits work for fleets of small tools; high-value equipment (excavators, lifts, cranes) should be scheduled individually at ACV or replacement cost.
- Most owner and GC contracts require you to carry this coverage; a COI gap discovered on Day 1 of a project can cost you the contract.
What Does Inland Marine Actually Cover for a General Contractor?
Inland marine insurance is a "floater" — it follows your property wherever it goes rather than insuring a fixed location. For general contractors, coverage is typically structured across three sub-lines:
| Coverage Component | What It Covers | What It Does NOT Cover |
|---|---|---|
| Contractors Equipment Floater | Owned or leased heavy equipment (excavators, skid steers, boom lifts, compactors) on or off the jobsite | Mechanical breakdown, wear and tear, employee theft |
| Tools & Small Equipment Floater | Hand tools, power tools, and small equipment typically valued under a per-item threshold (e.g., $1,000–$5,000) | Tools left unattended overnight in an unlocked vehicle (policy-specific; many carriers exclude or sublimit this) |
| Installation Floater | Materials and equipment purchased for a specific project from the time of purchase through installation and acceptance | Defective design or faulty workmanship causing loss to the work itself |
Important distinction: Builders risk covers the structure under construction. An installation floater covers the materials and equipment you are installing. Many GCs need both on larger projects — they are not interchangeable.
How Much Does General Contractors Inland Marine Cost?
Premiums are driven primarily by total insured value (TIV), the type of equipment, claims history, and whether coverage is blanket or scheduled.
| GC Profile | Approx. Equipment TIV | Typical Annual Premium | Common Deductible |
|---|---|---|---|
| Small residential GC (1–5 employees) | $30,000–$75,000 | $800–$2,000 | $500–$1,000 |
| Mid-size commercial GC ($1M–$5M revenue) | $75,000–$300,000 | $2,000–$6,000 | $1,000–$2,500 |
| Larger GC with heavy iron ($5M–$20M revenue) | $300,000–$1,500,000 | $6,000–$15,000 | $2,500–$5,000 |
| GC with owned cranes or specialized lifting | $1,000,000+ | $15,000–$40,000+ | $5,000–$10,000 |
Ranges are illustrative. Actual premiums depend on carrier, state, loss history, equipment age, and project type. Rates for California, Florida, and New York may be 10–25% higher due to theft frequency and regulatory costs.
Blanket vs. Scheduled Coverage
A blanket limit (e.g., $150,000) covers all tools and equipment up to that aggregate amount without listing items individually. Scheduled coverage lists each piece of equipment by make, model, serial number, and agreed value. For any single piece of equipment worth more than $10,000–$15,000, most carriers and GC risk managers recommend scheduling to avoid a co-insurance argument at claim time.
Does Standard Commercial Property or a BOP Cover My Tools on a Jobsite?
No — not adequately. A Business Owners Policy (BOP) or commercial property policy covers property at the scheduled premises (your office, yard, or warehouse). Once your tools and equipment leave that address and go to a temporary jobsite, coverage typically:
- Drops to a sublimit (often $2,500–$10,000 off-premises) that does not reflect actual equipment values.
- Excludes transit entirely, leaving tools uninsured during loading, transport, and staging.
- Does not follow leased or rented equipment, which requires a separate endorsement or floater.
Inland marine fills this gap specifically by design. The coverage form is "open perils" (also called "all-risk"), meaning it pays for physical loss or damage from any cause not specifically excluded, rather than only the named perils listed in a property form.
What Inland Marine Does NOT Cover — and What to Pair It With
| Gap | Coverage Solution |
|---|---|
| Employee theft of tools or cash | Commercial Crime / Employee Dishonesty policy |
| Equipment breakdown / mechanical failure | Equipment Breakdown endorsement |
| Bodily injury caused by operating equipment | Commercial General Liability (CGL) |
| Injury to the equipment operator | Workers' Compensation |
| The structure being built | Builders Risk policy |
| Rented/leased equipment (damage to the rental unit) | Rented/Leased Equipment endorsement on inland marine or damage waiver |
| Flood damage to equipment at a jobsite | Confirm carrier flood sub-peril; some inland marine forms include it, many exclude it |
How to Get Inland Marine Coverage as a General Contractor — 5 Steps
- Inventory your tools and equipment. List every item by description, serial number, purchase date, and current value (ACV or replacement cost). If you cannot provide a schedule, a blanket limit is available but may leave underinsured gaps.
- Determine your insurable interest in rented and leased equipment. Many equipment rental agreements make the lessee responsible for loss or damage. A rented/leased equipment extension on your inland marine policy addresses this.
- Decide: blanket or scheduled coverage. Blanket works well for fleets of similar small tools. For any piece valued over $10,000–$15,000, scheduling protects you at claim time and avoids per-item sublimit issues.
- Choose ACV vs. replacement cost valuation. Actual Cash Value pays the depreciated value of the item at time of loss — fine for older equipment you plan to replace. Replacement Cost Value pays what it costs to buy a comparable new item today and eliminates depreciation disputes.
- Bind coverage and request certificates. Most owner contracts and construction managers require evidence of inland marine coverage on the project-specific COI before work begins. Confirm the certificate holder language required by contract.
Real-World Scenario: Tool Theft on a Dallas Commercial Jobsite
The following is an illustrative example, not a guarantee of coverage or outcome.
The situation: A Dallas, Texas commercial GC is framing a 12-unit multi-family project. Over a weekend, a side gate is breached and thieves remove three Milwaukee M18 FUEL kits, two DeWalt table saws, a Hilti cordless rotary hammer, a pneumatic nailer set, and a Makita cordless drill kit from the tool trailer — total replacement cost approximately $18,400. The GC also has a rented Wacker Neuson plate compactor on the site; it is damaged during the break-in with a repair estimate of $2,200.
What inland marine covers: The GC carries a blanket tools floater with a $75,000 limit and a $1,000 per-occurrence deductible. The theft is a covered peril under the open-perils form. The carrier pays $17,400 ($18,400 loss minus $1,000 deductible). The rented/leased equipment extension covers the $2,200 compactor repair, minus the same $1,000 deductible — net $1,200 — because the rental agreement held the lessee responsible for damage.
Without inland marine: The GC's BOP had a $5,000 off-premises sublimit. Recovery would have been capped at $4,000 (sublimit minus deductible), leaving $14,400 of loss out of pocket.
Annual premium for this GC's floater: Approximately $1,650 — recovered in full within days of the claim.
Frequently Asked Questions
Is inland marine insurance required for general contractors?
No federal law mandates it, but commercial reality often does. Most general contractors and construction managers require subcontractors to carry inland marine (or a contractors equipment floater) as a condition of the subcontract. Owner contracts on commercial projects routinely require evidence of this coverage on the COI before work starts. Beyond contracts, operating without it while owning tens of thousands of dollars in tools is a significant uninsured exposure.
Does inland marine cover theft from my truck or van?
Generally yes, if the vehicle was locked and there is evidence of forced entry — but policy language varies. Some carriers impose a sublimit for tools stolen from unattended vehicles (commonly $2,500–$5,000), and others exclude overnight theft from vehicles entirely. Read the form carefully and ask your broker about any theft-from-vehicle sublimit before binding. If your tools regularly stay in a van overnight, confirm coverage and consider whether a higher sublimit or an endorsement is needed.
What is the difference between an installation floater and builders risk?
Builders risk covers the structure under construction — framing, drywall, mechanical systems — against fire, wind, vandalism, and similar perils. An installation floater covers the materials and equipment you own and are incorporating into the project, from the moment you purchase them through the point of owner acceptance. A GC installing a custom HVAC system, for example, needs an installation floater on the equipment being installed; builders risk typically covers the building shell and permanently incorporated materials once they are in place.
Does inland marine cover equipment I rent from a rental company?
Not automatically. Standard contractors equipment floaters cover owned equipment. You need a "rented or leased equipment" extension — usually available for a modest additional premium — to cover physical damage to equipment you rent. Check your rental agreement: most large rental companies (United Rentals, Sunbelt, etc.) hold the lessee responsible for loss or damage and will bill you directly.
What deductible should I choose?
Most GCs choose $500–$2,500 per occurrence. A higher deductible ($2,500–$5,000) lowers annual premium meaningfully but means small losses come entirely out of pocket. For heavy equipment scheduled individually, deductibles of $5,000–$10,000 are common, especially if the carrier is offering replacement cost valuation on newer iron. Match your deductible to your cash flow tolerance, not just your desire to lower the bill.
Will my inland marine cover a subcontractor using my equipment?
Coverage usually follows the equipment, not just the named insured, so physical damage to your equipment while a sub is operating it is typically covered. However, if the sub negligently damages a third party or another contractor's property while operating your machine, that is a liability question — your CGL may respond, and you should confirm how the carrier treats permissive users. Require subs to carry their own CGL and workers' compensation regardless.
Does inland marine cover flood damage to equipment at a jobsite?
It depends on the policy form. Many open-perils inland marine forms include flood as a covered peril with no separate exclusion. Others specifically exclude flood or impose a sublimit. Confirm with your broker before accepting contracts on sites with documented flood exposure (FEMA flood zones A or AE), and verify whether the form's flood coverage is subject to a separate sublimit or deductible.
Can I add an additional insured to my inland marine policy?
Inland marine is a first-party property coverage — it pays you (the named insured) for loss to your own property. Additional insured endorsements are a liability concept. Owners and GCs who want to be notified of cancellation are listed as certificate holders, not additional insureds, on an inland marine policy. If a project owner wants protection for materials they own that are in your care, custody, or control, that is handled through a bailee coverage endorsement or the owner's own policy, not an AI endorsement on yours.
Why General Contractors Work With Morrow
- Independent agency, multiple carriers. Morrow places commercial inland marine with multiple admitted and E&S carriers, which means we shop your account rather than fitting you into one carrier's box. For GCs with heavy equipment, specialty tools, or adverse loss history, market access matters.
- Fast COI turnaround. A contract can stall on Day 1 if the certificate of insurance isn't in the owner's inbox. Morrow handles certificate requests same-business-day for active clients, and can issue evidence of inland marine coverage alongside your GL and workers' comp on a single request.
- Construction-specialist knowledge. We understand the difference between a contractors equipment floater, an installation floater, and builders risk — and we structure the coverage so you're not carrying overlapping policies or, worse, gaps between them.
- Claims advocacy. When a theft or equipment loss happens, Morrow stays in the claim with you — helping document the loss, communicating with the adjuster, and pushing for fair resolution. We don't disappear after binding.
- Audit and premium management. Inland marine premiums on blanket forms are sometimes subject to annual reporting. We track your coverage as your equipment inventory grows or shrinks and adjust limits proactively so you're not over- or under-insured at renewal.
Get a Quote
Ready to protect your tools and equipment? Request a general contractors inland marine quote from Morrow — most accounts receive indications within one business day.
Prefer to talk first? Speak directly with a construction insurance specialist. [Morrow to confirm: phone number and hours]
Trust strip: Morrow (Afthonea Inc., DBA Morrow) is an independent commercial insurance agency licensed in [Morrow to confirm: licensed states]. We place coverage with admitted and E&S carriers rated A- (Excellent) or better by AM Best. [Morrow to confirm: Google/Trustpilot review count and rating.]
Related Resources
- General Contractors Insurance — Complete Coverage Guide (parent pillar)
- Builders Risk Insurance for General Contractors
- Commercial General Liability for General Contractors
- Workers' Compensation for Construction
- What Is an Installation Floater?
- Inland Marine Insurance Cost Guide
Author: Written by the Morrow Commercial Insurance Editorial Team, reviewed by a licensed P&C insurance broker (CPCU) with specialization in construction accounts. Published: June 2026 Last updated: June 2026
Sources: - Insurance Information Institute (III) — Inland Marine Coverage - National Association of Insurance Commissioners (NAIC) — Commercial Lines Coverage Definitions - International Risk Management Institute (IRMI) — Contractors Equipment Floater; Installation Floater - ISO (Insurance Services Office) — Inland Marine Conditions and Coverage Forms (commercial lines) - Associated General Contractors of America (AGC) — Risk Management for Contractors