I have a large work truck that won’t fit in the garage and it’s just not feasible to empty out my tools nightly. What if my tools are stolen out of my work truck?
Well, hopefully you have a policy that includes business property coverage. You could have a business policy called a B.O.P (Business Owners Policy) or have a policy called an Inland Marine policy. We know it sounds like it’s a policy for a boat but it’s not, its actually a policy for tool coverage.
How does an Inland Marine Policy work?
You can have a blanket coverage policy so say $5,000 in miscellaneous tools with nothing exceeding a $1,500 in value. You don’t have to come up with a huge list of tools. Or you can have a policy that lists a specific item such as a $6,500 lawnmower. You can also have a policy that does both items. You would list your specific big-ticket items and then have blanket coverage for all those miscellaneous items. The policies aren’t that expensive however you should know there’s something called “co-insurance”. Let’s do one more scenario below to explain how co-insurance and a deductible work.
“I have an inland marine policy for $4,000 in miscellaneous tools and I have a few higher dollar items scheduled so in full my policy covers $32,000 in business property. My policy has a $1,000 deductible and a 90% co-insurance. My truck is stolen out of the driveway and I’ve lost everything. How much will insurance payout?”
Policy Coverage Amount: $32,000
Minus the $1,000 Deductible
Minus the Co-Insurance (they cover 90% of the value so in all actuality they cover $28,800 in tools)
Total Paid out to you: $27,800
We know this can be confusing and at times maybe it’s not worthwhile to pay for a policy. We can help you with these scenarios and offer you quotes so you can make an educated decision. Just make sure you are having that conversation with us or with your Agent. This is one of those moments when you should see us all shine as Insurance Agents.