Protecting Your Projects and Equipment
Builder’s Risk & Equipment Insurance for Contractors (AZ)
Contractors need more than liability protection—they also need property insurance for what they own. That means coverage for the buildings under construction, tools and equipment on site, and materials in transit. JP Insurance Group helps Arizona contractors secure the right property coverages, including Builder’s Risk Insurance for structures in progress and Contractor’s Equipment Insurance (Inland Marine) for tools, machinery, and mobile gear.
Builder’s Risk Insurance – Coverage for Construction Projects
Builder’s Risk is a short-term policy that covers damage to a structure being built or renovated. It typically protects against fire, theft, vandalism, wind damage, and other site risks. Coverage can extend to materials on-site, stored off-site, or in transit to the job. For example, if a half-built home in Gilbert is hit by a monsoon storm, a builder’s risk policy can cover the damage and keep the project moving.
In Arizona, general contractors, developers, or project owners often carry this policy—it may even be required by a lender or contract. JP Insurance offers builder’s risk coverage endorsed by local builder associations, covering theft, fire, lightning, windstorms, and vandalism. Without it, damage to the work in progress could mean out-of-pocket costs or major project delays.
Contractor’s Tools & Equipment Insurance (Inland Marine)
Standard property policies don’t cover tools once they leave a fixed location. That’s where Inland Marine coverage comes in. Also known as a Contractor’s Equipment Floater, this policy covers tools, machinery, and gear that move between sites.
This includes items like:
- Handheld power tools and toolkits
- Generators and compressors
- Scaffolding and ladders
- Skid steers, backhoes, and other heavy equipment
Coverage follows your gear on the job, during transport, or in temporary storage—whether you’re working in Chandler, Queen Creek, or out in Buckeye. Rented or leased tools can be covered too, so you're not left vulnerable if something is damaged or stolen while in your care.
Installation Floaters & Material Coverage
Installation Floaters are another tool-specific policy designed for subcontractors. They protect materials from the time they leave the supplier to the moment they’re installed and accepted. For example, if you’re delivering HVAC units or plumbing systems to a site in Mesa and they’re damaged en route or on-site before installation, an installation floater would respond.
Builder’s Risk covers the whole project. Installation floaters cover specific components. If your GC’s builder’s risk doesn’t include your scope or you’re working on limited trades, this coverage fills the gap.
Office/Yard Property (If Applicable)
If you have a contractor yard, tool shop, or office building, commercial property insurance can protect buildings and contents at that fixed location. While less common for small mobile crews, JP Insurance can provide coverage for owned real estate, furniture, office equipment, and more if needed.
Why These Coverages Are Vital
Imagine this: You’re midway through framing a custom build in San Tan Valley and a storm tears through the site. Or someone breaks into your trailer overnight and wipes out $15,000 in power tools. Without the right property insurance, that’s all on you. With builder’s risk or equipment coverage, you can recover and keep working without a major setback.
Coordinating Coverage for Your Operations
Every contractor’s needs are different. General contractors might need a builder’s risk policy for every project plus a year-round equipment policy. Subcontractors may rely more on installation floaters and smaller tool policies. JP Insurance Group can help you build a complete property insurance plan that avoids coverage gaps.
We also make sure your liability and property coverage work hand-in-hand—remember, builder’s risk and inland marine are property policies. For coverage related to jobsite injuries or third-party damages, check out our General Liability Insurance.
Frequently Asked Questions – Builder’s Risk & Tool Insurance
What’s the difference between Builder’s Risk and Tool Insurance?
Builder’s Risk covers the structure and materials during a construction or renovation project. Tool Insurance (aka Contractors Equipment coverage) protects your owned tools and equipment, whether they’re on site, in transit, or in storage.
Does Builder’s Risk cover theft of my tools?
No. Builder’s Risk only covers building materials and structures—not your tools. You’ll need a separate policy or endorsement for equipment and tool coverage.
When should I get Builder’s Risk insurance?
Before the first nail is hammered. Most policies are project-based and should be in place before construction begins to protect materials on-site, in transit, or even stored temporarily.
I rent tools sometimes—are those covered too?
Yes—if you add rented or leased equipment to your tool/equipment policy. Many contractors forget to include this, but it’s easy to add.
What if the structure is partially complete and there's a fire?
Builder’s Risk would typically cover the damage to the structure and materials on-site, up to your selected policy limit. That’s exactly the kind of scenario it’s designed for.
Is coverage available for my tools while locked in my truck overnight?
Yes, but many carriers require the tools to be locked and secured to avoid denied claims. Some may exclude theft from an unattended vehicle unless specific conditions are met—we’ll help you set that up properly.
Get Covered Before the First Nail is Driven
Your gear and materials are too valuable to leave exposed. Whether you’re managing full builds in Maricopa County or running a specialty trade out of Apache Junction, JP Insurance is ready to help you get the right builder’s risk or inland marine policy.
Contact Us today to get started before your next project breaks ground.