Your business auto insurance policy does not cover your tools and equipment!

19 August 2025

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One of the most significant points of misinformation in commercial lines insurance relates to the business auto policy and coverage for tools and equipment.


Did you know that, in most cases, the business automobile insurance policy DOES NOT pay for losses to your tools and equipment?


You read that right.


In a survey of our team at Fusco Orsini & Associates, a question that we receive repeatedly relates to tool and equipment coverage.


Read on or watch our video for more!


First and foremost, you must advise your agent of additional tools and equipment attached to your vehicle.


YOUR BUSINESS AUTO POLICY MAY PAY FOR LOSSES TO PERMANENTLY ATTACHED EQUIPMENT


Think about service bodies, toolboxes, welders, sound systems, navigation systems, etc.


But if your agent is unaware of these additional items, they cannot correctly notify the insurance company.


Thus, the insurance company will not know, and the policy structure and rating are incorrect.


If you have permanently attached equipment to your vehicle, your business auto policy will pay for its losses, but they must know the items.


YOU NEED INLAND MARINE INSURANCE FOR ITEMS UNATTACHED TO YOUR AUTO


If you transport unattached tools and equipment in your vehicle, you need inland marine insurance to protect the items.


The inland marine policy is robust and has many insuring sections available.


Think about your construction tools and equipment, laptops, electronics, machinery, inventory, ladders, and anything valuable and at risk of loss while in your vehicle.


You will want to insure these items on an inland marine policy in the event of theft, fire, vandalism, and several other perils.


WHAT IS THE COST OF INLAND MARINE INSURANCE?


We answer this question in a previous BLOG/VLOG, which you can find here.


Although we direct the BLOG to contractors, most businesses can use the information as a reference.


HOW CAN FOA HELP ME OUT?


Our team at FOA has several years of experience protecting business owners and correctly placing business auto and inland marine insurance. Call us at 858-384-1506 or complete the form at the bottom of our BLOG to connect. Thanks again for visiting!

Headshot of a smiling person wearing a blue plaid suit, white shirt, and teal tie against a dark blue circular background.

By: Michael Fusco

CEO & Principal of Fusco Orsini & Associates

(858) 384‑1506

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