Get your best commercial tools and equipment insurance quote for free

See your commercial tools and equipment insurance rate online instantly

Get commercial insurance quotes.

41,690 Canadians

have compared rates and saved money over the last 24 hours

What our users say:

October 7
I really like this website,my insurance…
I really like this website,my insurance quote got really cheap with trustpot.
Sofia Basheer
October 7
It was worthe the call!
It was easy, it was straightforward. It was well worth the call as it saved me ...
Sylvia Moser
October 5
Quick response
Very nice people Quick to call you back Friendly With great offers
Luis Mendes
October 4
I was satisfied with the advice that I…
I was satisfied with the advice that I was giving
Pamalita Brooks
October 4
Good service and Advice. Helpful in reducing costs.
I received a lot of helpful advice from one of your sales representatives. His ...
customer
October 4
They thorough and quick in getting me a…
They thorough and quick in getting me a better deal than my present insurance co...
Karen St.Hill-Mitchell
October 2
Contact was very helpfull in going over…
Contact was very helpfull in going over my reguirements and explaning any questi...
Jim Kloepfer
September 27
Very good service
Very good service. I received a competitive quote for my insurance.
Maksym Marusenko
September 27
Timely response
Timely response. But the bank have not reach out to me.
Adediran Babalola
September 24
First time using this online service
First time using this online service. I received a phone call from LowestRates....
Rick
September 20
I appreciate the kind and welcoming…
I appreciate the kind and welcoming service I received.
Shawn M
September 20
Good
Very good 👍 experience with people 👌 very good experience I am coming with...
Gurmail Gosal
September 19
Easy and fast quote
Easy and fast quote. great customer service experience.
Maryanne Mooney
September 18
Can't think of anything else
Can't think of anything else. Very user friendly
Steve McFarlane
September 16
Good price
I'm good professional very fest response Quotes with good price
Karel Ferenc

How getting quotes works. Hint: it's free!

Pair

Next, we'll set you up with a quote from a top Canadian business insurer. It's free with no commitment.

Save

After you see your quote, secure your rate by talking to a licensed broker or agent.

What is commercial tools and equipment insurance?

Commercial tools and equipment insurance is a type of insurance coverage that protects businesses against loss, theft, or damage to their tools and equipment. It also helps businesses minimize operational downtime.

This insurance policy is widely available in Canada and typically used by businesses in construction, landscaping, and the trades, where expensive tools and equipment are essential for day-to-day operations. It covers damage to tools and equipment in a range of contexts: while they are being used on a job site, transported, or stored in a facility. Tools and equipment insurance is useful for tools that are portable, are frequently transported to different job sites, and are more vulnerable to theft (than, say, stationary equipment).

Who needs tools and equipment insurance?

This coverage is essential for businesses and companies who rely on specialized tools and equipment for their operations and need to bring them to different job sites. Insurance companies classify items costing less than $1,500 as tools, and those over $1,500 are considered equipment.

Here are some examples of professionals or businesses where this insurance coverage is beneficial:

Anyone who uses valuable tools or equipment for work should consider tools and equipment insurance to protect their assets against loss, theft, or damage.

What’s covered and not covered under tools and equipment insurance

Tools and equipment insurance covers repair or replacement costs for loss, theft, or damage. Here’s what is typically included in a standard tools and equipment insurance policy, as well as what is excluded.

Coverage typeIncluded? (YES/NO)
Theft and vandalism: Coverage for loss of tools and equipment stolen or vandalized from the job site, a vehicle, or from storage.YES
Fire and other natural disasters: Coverage for loss against fires and other weather-related damage like flooding or heatwaves.YES
Accidental damage: Coverage for accidental damage like accidental dropping tools or a road accident that damaged equipment.YES
Offsite: Coverage for tools and equipment that are not on the job site, but also those in-transit (while driving to and from job sites) or those in storage.YES
Wear-and-tear: Loss arising from regular use of tools and equipment, or mechanical breakdowns where equipment is well past its lifespan.NO
Intentional damage: As with all types of insurance coverage, losses arising out of intentional damage or negligence are not covered.NO
Immobile equipment: Other types of insurance, such as equipment breakdown insurance, exist for stationary or immobile equipment.NO
Flood damage: Damage caused by flooding is often not covered.NO

Coverage specifics can vary by policy, so it’s important to thoroughly review your policy’s terms and conditions to fully understand what is and isn’t covered.

Types of insurance claims that are common to commercial tools and equipment insurance

The most common claims relate to theft, damage, vandalism, and loss. Here are some scenarios where a policyholder could file a claim – and get compensated.

Stolen power tools are swiftly replaced

A contractor’s power tools were stolen from the locked shed at a job site. Thieves made off with a cordless belt sander ($300), a pair of cordless drills ($200 each), and a circular saw ($600).

Without tools and equipment insurance, the contractor would have spent $1,300 of their own money to replace the tools. But since they had coverage, their commercial insurance provider will cover the replacement cost of the stolen tools, allowing the contractor to quickly get back to work without financial strain.

Freelance videographer’s equipment protected by insurance

A freelance videographer’s 4K camera (valued at approximately $3,000) is damaged in a road accident on the way to a corporate event they were hired to shoot.

Thankfully, the videographer has tools and equipment insurance. Their camera is considered equipment due to its replacement value. The policy will cover the cost to replace the equipment as it was damaged while in transit.

Policy covers laptop damaged by power surge

An electrician brings their laptop (valued at $3,500) to a work site. It’s running low on power, so they plug it into a portable generator. A power surge destroys the laptop’s internal circuitry. Their policy will cover the cost to replace the damaged laptop.

How much does commercial tools and equipment insurance cost? 

The cost of commercial tools and equipment insurance in Canada varies based on several factors, including the value of the tools and equipment and the type of business you run:

How to get the cheapest commercial tools and equipment insurance quote?

Here are some ways to reduce your commercial tools and equipment insurance costs:

Shop around

Obtain quotes from multiple insurance providers to find the most competitive rate.

Choose the right coverage limits

Review your inventory and select coverage limits that match the actual quantity and value of your assets.

Opt for a basic policy

Choose a basic policy and add only essential coverage, avoiding extras to keep costs low.

Review coverage regularly

As your business grows or changes, review your coverage to avoid paying a chunk on assets you no longer own.

Increase deductibles

Choose a higher deductible amount to keep your premiums low.

Ask for discounts

Ask about any available discounts, like having a claim-free history.

Check with professional associations

Some associations (like the Canadian Federation of Independent Business) offer members discounted rates.

Bundle up

Many insurers offer discounts when you buy several insurance policies instead of one. Ask about bundle deals.

Implement safety measures

Insurers may offer lower rates if you have certain safety measures in place, like surveillance systems.

Regularly update your inventory

Review your inventory regularly to ensure you’re not paying for insurance on old or non-existent equipment.

Avoid claims

Don't make small claims that you could cover out-of-pocket. Reserve insurance for big emergencies. A claims-free history will lead to lower premiums over time.

Your tools and equipment insurance questions, answered.

Is tools and equipment insurance mandatory in Canada?

While tools and equipment insurance is not mandatory in Canada, anyone who uses valuable tools or equipment for work should consider this coverage to protect their assets against loss, theft, or damage. It minimizes financial losses, operational downtime, and provides peace of mind, allowing you to focus on your business.

Will commercial tools and equipment insurance protect when I’m using my tools and equipment for personal purposes?

Commercial insurance coverage does not typically cover losses from using tools and equipment for personal purposes. However, some insurance providers might totally exclude losses from personal use, while others may provide limited coverage against them. Check with your insurance provider.

If I already have extended warranty on my tools and equipment, do I still need get tools and equipment insurance?

An extended warranty typically covers defects in the tools and equipment for a specified period. However, tools and equipment insurance covers a broad range of incidents, including theft, loss, and damage – things that aren’t covered by warranties – and for as long as your policy is active.

Shaistha Khan

Shaistha Khan

About the Author

Shaistha Khan is a freelance writer in the personal finance space. She is a journalist, writer, and communications specialist with 12 years of experience across the oil and gas, business and professional development, and travel and tourism industries. She has lived in Saudi Arabia for nearly three decades, and reported on some of the first-ever events in the country. She has also reported from the United Arab Emirates, Bahrain, Qatar, India, and Houston, USA. Her work has been published in BBC Travel, USA Today, Al Jazeera, Teen Vogue, Travel + Leisure, Lonely Planet, Vogue Arabia, and several in-flight magazines. She has also worked with tourism boards and hotel chains on sponsored content.

She holds a Master of Business Administration degree (MBA) and a diploma in Public Relations and Reputation Management.

Read More