Contractor's Tools & Equipment

A contractors equipment floater covers the machinery, equipment, and tools that contractors use in the performance of their trade.

The property to be covered must be individually listed, or may be classed under a specific description, such as, "Tools & Equipment: Maximum Item Limit: $ 500" to provide coverage for various miscellaneous, low cost tools.

Coverage is based on Actual Cash Value (Replacement value less a deduction for depreciation).

Property Not Covered

1. Aircraft or Watercraft - "We" do not cover aircraft or watercraft.
2. Automobiles and Trucks - "We" do not cover automobiles, motor trucks, tractors, trailers, and similar conveyances designed for highway use and used for over the road transportation of people or cargo. However, this does not include:
1. self-propelled vehicles designed and used primarily to carry mounted equipment; or
2. vehicles designed for highway use that are unlicensed and not operated on public roads.
3. Contraband - "We" do not cover contraband or property in the course of illegal transportation or trade.
4. Loaned, Leased, or Rented Property - "We" do not cover property that "you" loan, lease, or rent to others.
5. Underground Mining Operations - "We" do not cover property while stored or operated underground in connection with any mining operations.
6. Waterborne Property - "We" do not cover property while waterborne except while in transit in the custody of a carrier for hire.

Perils Insured Against
The policy covers all risks of direct physical loss unless the loss is limited or caused by a peril that is excluded.

Perils Excluded

1. "We" do not pay for loss if one or more of the following exclusions apply to the loss, regardless of other causes or events that contribute to or aggravate the loss, whether such causes or events act to produce the loss before, at the same time as, or after the excluded causes or events.
1. Civil Authority - "We" do not pay for loss caused by order of any civil authority, including seizure, confiscation, destruction, or quarantine of property. "We" do pay for loss resulting from acts of destruction by the civil authority to prevent the spread of fire, unless the fire is caused by a peril excluded under this coverage.
2. Nuclear Hazard - "We" do not pay for loss caused by or resulting from a nuclear reaction, nuclear radiation, or radioactive contamination (whether controlled or uncontrolled; whether caused by natural, accidental, or artificial means). Loss caused by nuclear hazard is not considered loss caused by fire, explosion, or smoke. "We" do pay for direct loss by fire resulting from the nuclear hazard.
3. War - "We" do not pay for loss caused by war. This means:
1. declared war, undeclared war, civil war, insurrection, rebellion, or revolution;
2. a warlike act by a military force or by military personnel;
3. the destruction, seizure, or use of the property for a military purpose; or
4. the discharge of a nuclear weapon even if it is accidental.
2. "We" do not pay for loss or damage if one or more of the following exclusions apply to the loss.
1. Criminal, Fraudulent, or Dishonest Acts - "We" do not pay for loss caused by or resulting from criminal, fraudulent, dishonest, or illegal acts alone or in collusion with another by:
1. "you";
2. others who have an interest in the property;
3. others to whom "you" entrust the property;
4. "your" partners, officers, directors, trustees, or joint adventurers; or
5. the employees or agents of 1), 2), 3), or 4) above, whether or not they are at work. This exclusion does not apply to acts of destruction by "your" employees, but "we" do not pay for theft by employees. This exclusion does not apply to covered property in the custody of a carrier for hire.
2. Loss of Use - "We" do not pay for loss caused by or resulting from loss of use, business interruption, delay, or loss of market.
3. Missing Property - "We" do not pay for missing property where the only proof of loss is unexplained or mysterious disappearance of covered property, or shortage of property discovered on taking inventory, or any other instance where there is no physical evidence to show what happened to the covered property. This exclusion does not apply to covered property in the custody of a carrier for hire.
4. Pollutants - "We" do not pay for loss caused by or resulting from release, discharge, seepage, migration, dispersal, or escape of "pollutants" unless the release, discharge, seepage, migration, dispersal, or escape is caused by a "specified peril". "We" do pay for any resulting loss caused by a "specified peril".
5. Voluntary Parting - "We" do not pay for loss caused by or resulting from voluntary parting with title to or possession of any property because of any fraudulent scheme, trick, or false pretense.
3. "We" do not pay for loss or damage if one or more of the following exclusions apply to the loss. But if loss by a covered peril results "we" will pay for the resulting loss.
1. Contamination or Deterioration - "We" do not pay for loss caused by contamination or deterioration including corrosion, decay, fungus, mildew, mold, rot, rust, or any quality, fault, or weakness in the covered property that causes it to damage or destroy itself.
2. Mechanical Breakdown - "We" do not pay for loss caused by any:
1. structural, mechanical, or remodeling process; or
2. structural, mechanical, or electrical breakdown or malfunction.
3. Temperature/Humidity - "We" do not pay for loss caused by humidity, dampness, dryness, or changes in or extremes of temperature.
4. Wear and Tear - "We" do not pay for loss caused by wear and tear, marring, or scratching.

Endorsements available for Contractor's Tools & Equipment

1. Rental Reimbursement: Coverage may be purchased to provide the cost of renting equipment to replace the lost item(s).
2. Boom - Restriction: removes coverage for booms that exceed 25 feet in length. It does, however, still cover such booms in transit when damaged by a specified peril.
3. Percentage Deductible: instead of a flat dollar deductible, this option allows the insured to choose a selected percentage of the value of an insured item as the applicable deductible. This amount is then subject to a minimum and a maximum dollar amount.
4. Split Deductible: allows the insured to select two different deductible amounts for different covered perils (e.g. $2,500 deductible for vandalism losses and $1,000 for all other covered perils).
5. Equipment Leased or Rented From Others: extends coverage for equipment that has been leased or rented from others, but is not on the schedule.
6. Replacement Cost: amends the adjustment of losses from Actual Cash Value to replacement cost.
7. Small Tools: extends coverage to the "small tools" of the insured and his or her employees. A separate deductible applies to this endorsement.
8. Waterborne Coverage: removes the exclusion of waterborne property.