Late summer is the peak season for job sites across our region, which unfortunately also makes it peak season for job site theft. Tools, equipment, and building materials left on-site overnight are an easy target, and a single incident can set a project back days or weeks. Here’s what every contractor should know about protecting what’s on the job site.
The Scope of the Problem
Construction site theft costs contractors significant money every year in stolen tools, equipment, and materials, not to mention the lost productivity while replacements are ordered and projects sit stalled. Open lots, partially built structures, and unattended equipment trailers are especially vulnerable, particularly overnight and on weekends.
What a General Liability Policy Doesn’t Cover
A lot of contractors assume their general liability policy protects their tools and equipment. It doesn’t — general liability is built to cover third-party injury and property damage claims, not the loss of your own tools, equipment, or materials. That’s where specialized coverage like an inland marine policy, sometimes called a tool floater or contractor’s equipment policy, comes into play.
What Tool & Equipment Coverage Typically Includes
- Hand and power tools owned by the business or crew
- Equipment in transit between job sites, not just while stationary
- Rented or leased equipment, in many cases
- Building materials staged on-site awaiting installation, depending on the policy
Practical Prevention Tips
Beyond insurance, a few practical habits go a long way: lock down trailers and storage containers every night, engrave or tag high-value tools for identification, keep an updated equipment inventory with serial numbers and photos, and consider GPS tracking for larger equipment. Good lighting and visible security signage can also deter opportunistic theft.
If Theft Happens
Report the theft to local law enforcement first and get a police report. Most insurers require one to process a claim. Then document everything: what was taken, its approximate value, and any site security footage or photos. The sooner your agent has this information, the sooner the claims process can move forward and get your crew back to work.
If you have any questions on what your policy covers, reach out to us. Our team is here to help you, answer questions and provide new quotes if you are interested in that as well.