Construction tools and equipment are crucial for any construction project. However, they can be expensive to replace if they are stolen or damaged, which is why it’s important to have insurance.

Insurance protects your business from potential financial loss due to unforeseen events, but insurance premiums can be a significant expense for construction companies. In this article, we will discuss some tips for keeping the costs of your insurance for tools and equipment low.

Tip 1: Shop Around for Insurance 

Don’t settle for the first insurance policy you come across. Just like how you shop for insurance for yourself, look for policies from different providers, and compare the coverage and premiums. This will help you find one that meets your specific coverage needs while also being cost-effective.

Tip 2: Evaluate Your Coverage Needs

Determine what types of coverage you need and how much coverage you need. For example, if you have expensive equipment, you may need higher coverage limits. By evaluating your coverage needs, you can avoid over-insuring or under-insuring your equipment, which can both lead to higher insurance premiums.

Tip 3: Increase Your Deductible

Another way to keep the costs of your insurance for tools and equipment low is to increase your deductible. A deductible is the amount you must pay before your insurance coverage kicks in. By increasing your deductible, you can lower your insurance premiums. However, if you need to file a claim, you will have to pay more out of pocket.

Tip 4: Maintain a Good Safety Record

Insurance providers consider a company’s safety record when determining insurance premiums. If your company has a good safety record, insurance providers will view you as a lower risk and may offer lower premiums. Implement safety protocols and train your employees to follow them. This way, you can prevent accidents and injuries as well as maintain a good safety record.

Tip 5: Implement Security Measures

Install security cameras, alarms, and GPS trackers on your equipment. This makes it less likely that your equipment will be stolen or damaged, which can lead to lower premiums for your insurance for tools and equipment.

Tip 6: Bundle Your Insurance Policies

Bundling your insurance policies can also help keep your construction tools and equipment insurance costs low. If you have multiple insurance policies, such as general liability and workers’ compensation, consider bundling them with your construction tools and equipment insurance. Insurance providers often offer discounts for bundling policies.

Tip 7: Maintain Your Equipment

Maintaining your equipment is important for preventing damage and prolonging its lifespan. Insurance providers may offer lower premiums to companies that regularly maintain their equipment. Implement a maintenance schedule and keep detailed records of all maintenance performed on your equipment.

Tip 8: Review Your Policy Annually

As your company grows and changes, your insurance coverage needs may change as well. Review your policy annually to ensure that you have the appropriate coverage and that you are not overpaying for insurance. If you find your coverage needs have changed, contact your insurance provider to adjust your policy.


There are various ways to keep your construction tools and equipment insurance costs low, and the tips below are only a few of them. By following these, we hope you can ensure that your construction tools and equipment are protected without breaking the bank.

At Pascal Burke Insurance Brokerage Inc., we have brokers who are contractor specialists. We know your struggles well and can provide you with the right insurance for tools and equipment. Contact us today for a consultation.