What information do I need to insure my business’s tools and equipment in Texas?
By Mark Melliand, owner, Melliand Insurance Agency · 13 years as an independent agent · Published October 28, 2026
The short answer
What an insurer asks for depends on the insurer, the equipment you own and how you use it. The contractors’ equipment applications we reviewed ask about:
- your business and operations
- a schedule of equipment with values
- tools and smaller items that aren’t individually listed
- where equipment is kept and used
- how it’s transported
- security and maintenance
- equipment you rent from others or to others
- prior insurance and losses
Having an accurate inventory and a clear picture of where your equipment goes makes the process smoother.
This guide focuses on contractors’ tools and equipment. Inland marine also includes other coverages, such as installation, builders risk and cargo, which may need different applications. For what inland marine can cover, see our guide to what inland marine insurance covers.
The applications we reviewed
- The Hartford, Middle & Large Business Contractor’s Equipment Coverage Application, 26-ML-3788350 (© July 2026). It’s aimed at The Hartford’s middle and large business segment and includes conditional sections for cranes and asphalt plants.
- The Hanover Insurance Company, Contractors Equipment application, 117-1385 (2/15). It includes supplemental sections that apply only when relevant, for cranes, equipment rented to others and equipment dealers.
These are illustrative examples, not confirmed current Texas offerings or universal requirements. The information requested to quote a policy is not the same as the policy terms that ultimately establish coverage. Each item below is attributed to the application that asks it.
Business identity and operations
- Hanover asks for the first named insured, other named insureds, mailing address, whether the business is a partnership, corporation or individual, years in business, a description of operations, website, an inspection contact, and additional interests such as a loss payee or mortgagee.
- The Hartford asks for the business’s name and address, policy period, current carrier, year business started, primary operation, and whether its contractor’s equipment coverage has been cancelled or non-renewed in the past three years (Missouri applicants are told not to answer that question).
Have your legal business names, any DBAs, a plain-language description of the work you do, and where you operate.
Your equipment inventory
Both applications ask for an equipment schedule:
- The Hartford asks you to attach a schedule of equipment, and asks for the total number of scheduled pieces, the total scheduled value, and the highest-valued piece, with separate lines for any crane or asphalt plant.
- Hanover asks for the total scheduled value of owned equipment and the limit of the largest scheduled item, and asks you to submit an equipment schedule. It also asks the average age of the equipment and whether any equipment is held for sale; if so, its equipment dealer supplement applies.
As practical preparation, not a field list taken from either application, a useful schedule usually lists each item’s description, make, model, year, serial or identification number, and value. Ask your agent which details this insurer wants. If you don’t know a value or detail, say so and ask how to handle it rather than guessing. Keep serial-number lists and inventories off website forms and ordinary email.
Scheduled equipment vs. tools and unscheduled items
Applications distinguish individually listed (scheduled) equipment from smaller items covered under a separate limit:
- Hanover asks for the total for “Tools and Miscellaneous Unscheduled Equipment” and the maximum per item for that category.
- The Hartford asks for a miscellaneous unscheduled equipment limit, an employee tools limit, and whether tools are taken home by employees. Its listed coverage extensions include employee tools and clothing, with per-occurrence and per-employee limits shown on the form.
Ask how each item would be insured: whether higher-value tools should be scheduled, what per-item limits apply to unscheduled items, and how employee-owned tools are treated.
Values and how they’re determined
Hanover asks, “How does the insured determine the values of their equipment?” What you paid, what your books show after depreciation, and what it would cost to replace an item today can all be different numbers. Ask what valuation basis the policy uses, what value you should report for each item, and what documentation supports it, such as invoices, appraisals or dealer quotes. A value listed on a schedule doesn’t by itself guarantee that amount will be paid; how a loss is settled depends on the policy’s valuation and other terms.
Ownership, financing and others’ equipment
- Owned vs. rented or leased. Both The Hartford and Hanover ask separately about equipment leased or rented from others.
- Loss payees and lenders. Hanover asks for additional interests, such as a loss payee.
- Employee-owned tools. The Hartford asks about an employee tools limit.
Be ready to list equipment you own outright, equipment that is financed, leased or rented, equipment borrowed from others, and tools employees bring. Have the lender or lessor details if they want to be listed on the policy, and check your financing or rental agreements for insurance requirements.
Equipment you rent from others vs. equipment you rent to others
Keep these two separate; they are different exposures.
- Rented or leased from others. The Hartford asks whether you lease or rent equipment from others, the limit requested, and your annual lease and rental expenditures. Hanover asks whether coverage is needed, the maximum limit per item and total limit, annual expenditures, and what types of equipment you rent or lease.
- Rented or leased to others. The Hartford asks whether you lease or rent equipment to others and the limit requested. Hanover, if this coverage is needed, asks whether it’s with or without operators, rental receipts, whether you collect certificates of insurance from renters, and about hold harmless, indemnification and additional insured terms in your rental contracts.
Where equipment is kept and used
- Territory. Hanover asks what territory equipment is used in, whether it’s brought back to your location, and the largest concentration of values at your location. The Hartford asks the territory or radius equipment is primarily used in, the equipment yard address and the maximum value at the yard at any one time.
- Yards and job sites. The Hartford asks whether the equipment yard is lighted, fenced and has security. Hanover asks you to describe theft and vandalism controls at the storage yard and at job sites.
- Special exposures. The Hartford asks about underground and waterborne exposures. Hanover asks about hazardous operations such as logging, waterborne work, mining, tunneling or drilling, and about waterborne coverage needs.
Moveable equipment isn’t automatically insured everywhere. Ask how the policy treats each place equipment is used or stored, including job sites, yards, vehicles, trailers and employees’ homes.
Transportation
- Hanover asks whether you transport your own equipment, and if not, how risk is transferred to whoever does.
- The Hartford asks whether a third-party carrier that hauls your equipment is contractually liable while it’s in their care.
Note who moves your equipment, how, and how far. Review coverage for the transporting vehicle, attached equipment and loose tools separately. Do not assume coverage for one automatically insures the others. See our guide to what commercial auto insurance covers.
Security and theft prevention
These are application questions, not universal coverage requirements:
- The Hartford asks about GPS or theft tracking on high-value equipment, fully fenced and well-lit job sites, kill switches when equipment isn’t in use, cameras at job sites, and hired security after hours.
- Hanover asks whether formal security procedures are in place to prevent theft and vandalism.
Describe what you actually do today. A policy may separately contain security conditions, so ask whether any apply.
Operators, maintenance and specialized equipment
- Maintenance. Hanover asks about a formal maintenance program, records, on-staff maintenance employees, how often maintenance is done, and any fire suppression systems. The Hartford asks about maintenance schedules, on-staff mechanics and fire extinguishers on large equipment.
- Operators and management. The Hartford asks about employee experience, background checks, drug testing, motor vehicle records and formal operator training.
- Cranes and specialized equipment. Both applications have additional crane questions that apply only if cranes are part of the schedule, and The Hartford has questions that apply only to asphalt plants.
Coverage you want quoted
The Hartford asks for your current deductible, with listed options, and lists coverage extensions with limits that can be revised, such as rental expense (with a stated waiting period unless otherwise stated), hauling equipment of others and job site trailers. Both applications ask about limits for rented equipment and unscheduled items. These options aren’t automatically included in every policy. Ask what’s included, what each limit and deductible is, and what valuation basis applies.
Prior insurance and losses
- The Hartford asks for a loss history table and five years of hard-copy loss runs, and whether there are prior exposures that no longer exist.
- Hanover asks for prior carrier, policy number, premium and losses by year, and a minimum of three years of hard-copy loss history.
These periods differ, so use each insurer’s request, and request loss runs from your current insurer early. Disclosing a loss on a new application is separate from giving notice under a policy you already have. If something may need to be reported under a current policy, follow that policy’s notice requirements.
Other inland marine coverages may need different information
Installation coverage for materials you’re installing, builders risk for a building under construction, and motor truck cargo for goods you haul for others are different coverages and may use different applications. See our guide to what builders risk insurance covers.
Getting the answers right
- Have the person who manages your equipment check the schedule and values.
- Report what is in place now, and describe planned changes separately.
- Read the application’s definitions and signature statement. The Hartford’s applicant’s statement says the signer declares that, to the best of their knowledge and belief, the statements are true, and that they are offered as an inducement to issue the policy.
- Let your agent know about equipment purchases, sales, new locations or new operations before coverage begins.
How an inaccurate answer affects coverage depends on the policy, the facts and applicable law. Questions about the legal effect of an application statement belong with an attorney.
Information, preparation and questions
| Information | What to prepare | What to clarify |
|---|---|---|
| Business identity | Legal names, DBAs, entity type, years in business, operations | Which entities should be named? |
| Equipment schedule | Description, make, model, year, serial number and value for each item | What details and format does this insurer want? |
| Tools and unscheduled items | Totals and highest per-item values; employee-owned tools | What per-item limits apply? Should anything be scheduled? |
| Values | How values were determined, with supporting documents | What valuation basis does the policy use? |
| Ownership and financing | Owned, financed, leased, rented and borrowed items; lender or lessor details | Who should be listed as a loss payee? |
| Rented equipment | Equipment rented from others and to others, kept separate | Which rental exposures need coverage, and at what limits? |
| Locations and transport | Territory, yards, job sites, overnight storage, who hauls equipment | How are each location and transport method treated? |
| Security and maintenance | Current security and maintenance practices | Does the policy include any security conditions? |
| Loss history | Loss runs and details of theft or damage | What period does this insurer require? |
A staged checklist
Initial discussion
- Business names, operations, years in business and territory
- Approximate total equipment value and highest-valued item
- Tools and unscheduled equipment totals
- Whether you rent equipment from or to others
- Current inland marine and related policies
More complete submission
- Completed application and any supplements that apply (for example, crane, rental-to-others or dealer sections)
- Equipment schedule with values and how they were determined
- Yard, job-site and transport details
- Security and maintenance practices
- Loss runs for the requested period
Additional underwriting, if requested
- Supporting value documents
- Lender or lessor details
- Rental agreements or contract terms the insurer asks about
- Updates on any changes before coverage begins
Questions to ask
- Which items should be scheduled, and what per-item limit applies to unscheduled tools?
- What valuation basis does the policy use, and what value should I report?
- How are employee-owned tools and borrowed equipment treated?
- How is equipment covered at job sites, in yards, in vehicles and overnight?
- Do I need coverage for equipment I rent from others, rent to others, or both?
- What loss history does this insurer need?
Keep sensitive information protected
Don’t send serial-number inventories, financing documents, detailed security arrangements or claim files through a website form or ordinary email. Ask what’s actually needed, and arrange an appropriate secure way to provide it.
Requesting a quote doesn’t bind coverage
Asking for a quote or completing an application doesn’t put coverage in place. The Hartford’s application, for example, states that signing it “does not bind the applicant firm or the company to complete the insurance.” Ask your agent to confirm whether coverage has been bound, its effective date and the agreed terms.
Sources
- The Hartford, Middle & Large Business Contractor’s Equipment Coverage Application, 26-ML-3788350 (© July 2026). Illustrative; middle and large business segment; not a confirmed current Texas offering.
- The Hanover Insurance Company, Contractors Equipment application, 117-1385 (2/15). Illustrative.
About Melliand Insurance Agency
Melliand Insurance Agency is an independently operated insurance agency affiliated with Premier Group Insurance (PGI), a nationwide agency network.
If you’d like help preparing to insure your tools and equipment, call (972) 346-4666 or email melliandinsurance@gmail.com, Monday–Friday, 8 AM–5 PM Central.
This article provides general information only. It is not legal advice and is not a statement of coverage. Application questions, eligibility and coverage vary by insurer and policy. The applications described here are illustrative examples identified by form and edition and are not confirmed current Texas offerings. Requesting a quote or completing an application does not bind coverage.