Pennsylvania Inland Marine Insurance

A contractors equipment floater covers machinery like skid steers, mini excavators, compact track loaders, generators, compressors, and scaffolding against theft, vandalism, fire, collision, overturn, and similar perils. It's the backbone of any contractor's inland marine program.

The way you schedule equipment matters more than most people realize. Scheduled coverage lists each item with a serial number and a stated value, which makes claims cleaner. Blanket coverage puts a single limit over a category of smaller items, usually with a per-item cap. A common mistake we see is a contractor scheduling the excavator but forgetting the $18,000 attachments that go with it, or listing equipment at its purchase price from 2019 without checking whether the policy pays actual cash value or replacement cost.

Generators deserve special attention. They're among the highest-value theft targets in Pennsylvania, along with copper wiring and fuel, especially at unguarded staging areas along the I-76 and I-80 corridors. If you rent or borrow equipment, ask about rented equipment coverage too. Many rental agreements make you responsible for the full value, and your floater may not include rented items unless you add them.

Tools left in trucks overnight are one of the most common theft claims contractors file, and inland marine coverage is how those claims get paid. Commercial auto insurance covers the truck itself. It does not cover the drills, saws, laser levels, and pipe threaders inside it. A tool floater or transit coverage picks up that loss.

The pattern is depressingly familiar. A plumber finishes late, leaves the van at home or at a hotel, and the side door gets punched overnight. Thieves know which vans carry tools, and they know how fast they can resell them. Westmoreland County has seen thefts that targeted trailers at transit hubs, including construction trailers hit at the Flying J Travel Center, which shows how vulnerable equipment is while it's on the move.

Here's what to check in your policy before a claim, not after:

• Vehicle theft conditions: Some forms require visible signs of forced entry or that the vehicle was locked. A missing tool with no broken lock may be denied.
• Unattended vehicle exclusions: Older forms exclude theft from unattended vehicles during certain hours unless the vehicle is in a locked garage. Ask whether yours has this.
• Employee tools: Your crew's personal tools may not be covered under your floater unless you add an employee tools endorsement.
• Deductible per occurrence: A $1,000 deductible on a $1,400 loss doesn't help much. Match the deductible to the size of claim you'd actually file.

Keep an inventory with photos and serial numbers on your phone. When a theft happens at 6 a.m., you'll file faster and get paid sooner.

An installation floater covers materials and equipment you're installing, from the moment they leave your shop until the job is accepted by the owner. Think HVAC units, windows, cabinetry, roofing materials, electrical panels, and copper wire waiting to be pulled.

These floaters bridge a gap that standard property insurance leaves wide open, since that coverage often stops once materials leave a contractor's primary warehouse. Say a mechanical contractor stages $60,000 in rooftop units at a commercial build in Ellwood City. If the units get stolen or damaged before they're set and connected, the property owner's builders risk policy may not apply yet, and your shop policy definitely doesn't. The installation floater does.

Pay attention to three limits: materials at the job site, materials in transit, and materials in temporary storage (like a rented storage unit or a supplier's yard). Each can carry its own cap. Also check when coverage ends. Most forms stop when the work is accepted or the owner takes occupancy, so finishing touches done after acceptance may fall outside it. Contractors who work on several jobs at once should look at a blanket installation floater rather than buying coverage job by job.

Inland marine coverage is designed for property that rotates between jobs, so a generator that spends Monday in Zelienople and Thursday in Greensburg stays covered the whole week. That mobility is exactly why job site theft is so common here: equipment sits overnight in places with no fence, no camera, and no one watching.

The losses can be large. Pennsylvania State Police investigated a case where more than $50,000 in tools and equipment were stolen from a single construction site in South Huntingdon Township, Westmoreland County. One bad night can wipe out a season's profit for a small contractor without the right coverage.

Practical steps that help both prevention and claims: chain equipment to fixed objects, remove batteries or keys from machines overnight, install GPS trackers on high-value items, and document what's on each site. Some carriers credit theft-prevention devices, so mention them when quoting.

Does my general liability cover my tools? No. General liability covers injuries and damage you cause to other people or their property. Your own tools and equipment need inland marine coverage.

What if my equipment is stolen from a locked trailer? A tool or contractors equipment floater typically covers theft from a locked trailer, as long as you meet the policy's security conditions. Check whether your form requires visible signs of forced entry.

Does commercial auto insurance cover tools in my truck? It covers the truck, not the tools inside. You need a tool floater or transit coverage for the contents.

Is inland marine insurance required in Pennsylvania? State law doesn't require it. Many general contractors, project owners, and equipment lenders do require it in their contracts, though.

Are my employees' personal tools covered? Only if you add an employee tools endorsement. Many policies leave them out by default.

How much inland marine coverage do I need? Add up the replacement cost of everything you'd have to rebuy after a total loss, including the largest load of materials you'd have on one site. That number is your starting point.