Inland Marine Insurance for General Contractors in Texas: Tools and Equipment Coverage

A general contractor whose tools are stolen from a job site has no claim under GL and no claim under commercial property. Inland marine is the coverage that fills that gap.

For Texas GCs, this matters constantly. Tools travel from one job site to the next, equipment gets staged at locations you do not own, and materials sit exposed before installation. Standard commercial property covers items at your listed business address. Inland marine covers your equipment wherever it actually is.

Quick Answer

Estimated inland marine premiums for Texas general contractors:

Coverage Type	Estimated Annual Premium
Small contractor tool floater ($10K to $25K value)	$300 to $700 per year
Mid-size contractor equipment package ($25K to $75K value)	$600 to $1,500 per year
Large contractor equipment schedule ($75K to $200K+ value)	$1,200 to $3,500 per year

Texas GC inland marine premiums are near the national average, though job site theft rates in major metro areas like Houston and Dallas can push premiums slightly higher.

What Inland Marine Covers for Texas General Contractors

Contractor Tools Floater

Covers hand tools, power tools, and portable equipment against theft, loss, and accidental damage at any location:

• Tools stolen from a job site trailer or truck bed overnight
• Power tools damaged in a fall or accident during a project
• Equipment lost or damaged while being transported between sites

Equipment Floater

Covers heavier portable equipment that moves from project to project: air compressors, generators, concrete mixers, scaffolding systems, and similar items.

Installation Floater

Covers materials and equipment that have been purchased for a specific project but not yet permanently installed. Once materials are installed and become part of the structure, they shift to builder's risk or the property owner's policy.

Builders Risk (Related, Not the Same)

Builder's risk covers the structure under construction. Installation floater covers materials in transit or staged on site before installation. A GC may need both depending on contract requirements.

What Inland Marine Does Not Cover

• The job site structure itself: Builder's risk covers the building under construction. Inland marine covers movable property.
• Vehicles: Commercial auto covers your trucks and equipment that requires licensing to operate on public roads.
• Permanently installed equipment: Once equipment is bolted in or attached to a structure, it is typically covered under commercial property or builder's risk, not inland marine.
• Employee theft: Most inland marine policies exclude losses caused by employee dishonesty. A commercial crime policy covers that.

Texas-Specific Considerations

Job Site Theft in Texas Metro Areas

Houston, Dallas-Fort Worth, Austin, and San Antonio all have active construction markets, which also means active tool and equipment theft. Contractors working in urban infill or dense suburban development often report more frequent losses from unsecured trailers and open sites.

Multi-Site Operations

Texas GCs running several projects simultaneously carry equipment across multiple active sites. A blanket inland marine policy that covers all equipment regardless of location is typically more practical than scheduling each item at a specific address.

Subcontractor Equipment on Your Site

Inland marine covers your tools and equipment. If a subcontractor brings their own equipment to your job site, their equipment is their responsibility unless your contract specifies otherwise. Confirm who covers what before work begins.

Equipment Value Changes

As you add tools, upgrade equipment, or take on larger projects, your inland marine limits need to keep pace. Texas contractors who buy a skid steer for one project and forget to add it to their policy often discover the gap after a loss.

Frequently Asked Questions

Does commercial property cover tools left on a job site in Texas?

No. Commercial property covers items at your listed business address only. Tools and equipment at a job site, in a vehicle, or in transit need inland marine or a contractor equipment floater.

What is an installation floater?

An installation floater is an inland marine policy that covers materials purchased for a specific project while they are in storage, transit, or staged on site before permanent installation.

Does inland marine cover tools stolen from my truck?

Yes. Most contractor equipment floaters cover theft from vehicles, though some policies require the vehicle to be locked and may have sublimits for tool theft from unattended vehicles.

How much inland marine coverage does a Texas general contractor need?

Coverage should match the replacement cost of your tools and portable equipment. A contractor with $50K in tools and equipment should carry at least $50K in inland marine limits.

Is inland marine required for Texas GC licensing?

Texas does not require inland marine as a condition of contractor licensing. However, many project owners and general contracts require it as a condition of working on their projects.

Disclaimer

This article is for informational purposes only and does not constitute insurance or legal advice. Coverage details and costs vary by carrier and individual circumstances. Consult a licensed insurance agent for guidance specific to your situation.

Sources

• Insurance Information Institute - Inland Marine
• Texas Department of Insurance
• Inland Marine Underwriters Association