Are Tools in Your Work Van Covered by Commercial Auto Insurance?

If you’re a contractor, electrician, plumber, HVAC technician, landscaper, or other business owner who works out of a truck or van, think about what’s riding around with you every day.

Power tools. Hand tools. Ladders. Testing equipment. Materials. Specialized equipment.

Depending on your business, there could easily be thousands, or even tens of thousands, of dollars of business property inside your vehicle.

Now imagine you’re involved in an accident and your work van is badly damaged.

What happens to all the tools and equipment inside?

Many business owners assume their commercial auto insurance will pay for them.

Unfortunately, that may not be the case.

Commercial Auto Insurance Usually Covers the Vehicle — Not Everything Inside It

Your commercial auto policy is designed primarily to insure the vehicle itself and your liability arising from its use. The tools, equipment, supplies, and other business property you carry inside the vehicle generally require separate coverage.

For example, imagine you have $15,000 worth of tools and equipment in your work van when you’re involved in an accident.

Your commercial auto policy may pay for covered damage to the van, subject to the terms of your policy. But that doesn’t automatically mean there’s $15,000 of coverage available for the tools that were damaged inside.

If another driver is responsible for the accident, you may be able to recover damages through that driver’s insurance. But you don’t want the protection of your business property to depend entirely on someone else being at fault – or having adequate insurance.

So How Do You Insure Tools and Equipment in a Work Vehicle?

This is where inland marine coverage, sometimes referred to as tools and equipment coverage, can become important.

Despite the name, inland marine insurance has nothing to do with boats.

It is designed to protect certain types of business property that move from one location to another rather than remaining at one fixed business location.

For contractors and tradespeople, that can include things such as:

• Power tools
• Hand tools
• Portable equipment
• Specialized machinery
• Equipment transported between jobsites
• Other eligible business property carried in a work truck or van

The exact protection depends on the policy, including its limits, deductibles, exclusions, and how your property is scheduled or valued.

That’s why it’s important to tell your insurance agent what you’re carrying and approximately what it’s worth.

What About Equipment Permanently Attached to Your Truck or Van?

There’s another issue business owners can easily overlook: permanently installed equipment.

Maybe you’ve customized your commercial vehicle with equipment such as shelving, racks, toolboxes, refrigeration equipment, generators, cranes, lifts, compressors, or other specialized equipment.

Those additions can significantly increase the value of the vehicle.

If you’ve spent thousands of dollars modifying a truck or van for your business, make sure your insurance agent knows about it.

For example, a standard work truck might be worth $45,000. But if you’ve added $20,000 worth of permanently attached equipment, you’ve now invested substantially more into that vehicle.

Your commercial auto coverage needs to accurately reflect what you’ve built.

Don’t wait until after a major accident to discover that your insurance company didn’t know about expensive equipment or modifications.

Don’t Forget About Property Stored Somewhere Else

Where you keep your business property matters, too.

Maybe your equipment isn’t always in your van. Perhaps you keep extra tools in a detached shed, rented garage, storage unit, trailer, or another location away from the business address listed on your insurance policy.

Don’t assume your commercial property insurance automatically follows everything your business owns wherever it goes.

If you own or rent additional structures, store equipment somewhere else, or regularly move business property between locations, tell your insurance agent.

[Related: Does Your Business Insurance Cover Property at Other Locations?]

A Simple Question Every Business Owner Should Ask

Take a look inside your work vehicles and ask yourself:

“If everything in this vehicle were destroyed tomorrow, how much would it cost me to replace it?”

Don’t just think about the obvious items. Add up the drills, saws, diagnostic equipment, ladders, specialty tools, materials, and all the smaller items you’ve accumulated over the years.

The total might surprise you.

Then consider the equipment permanently attached to the vehicle. Have you added anything since you originally purchased or insured it?

If the answer is yes, it’s worth reviewing your coverage.

Let Holley Insurance Review Your Commercial Coverage

At Holley Insurance, we’re here to help Virginia business owners understand what their insurance actually covers—not just hand them a policy and hope for the best.

If you carry valuable tools or equipment in your work vehicles, have customized commercial trucks or vans, or store business property at multiple locations, let’s make sure your insurance reflects how your business actually operates today.

Contact Holley Insurance for a commercial insurance review. We’ll help you identify potential gaps and make sure your vehicles, equipment, and business property are properly accounted for before you need to file a claim. A five-minute conversation today could prevent a very unpleasant surprise when it’s time to file a claim. Get started here.

---

---