Inland Marine for LA Contractors — Tools, Equipment & Installation Coverage
Los Angeles leads California in construction site theft at $4.2M+ annually. Your GL policy doesn't cover your tools. Your property policy doesn't follow equipment to job sites. Inland marine fills the gap — protecting your tools, equipment, and materials wherever the work takes you.
LA Equipment Risk Landscape
Los Angeles's high-theft environment, sprawling geography, and luxury construction market create inland marine exposures that most contractors underestimate until a major loss occurs.
LA's #1 Construction Theft Market
Los Angeles leads California in construction site theft — the LAPD reported $4.2M+ in annual job site theft losses across the metro area. Copper wire, catalytic converters from parked equipment, power tools, and heavy equipment are primary targets. Hollywood, DTLA, and South LA construction sites face the highest theft frequency. Multi-story projects with unsecured ground floors and sites without 24-hour security are particularly vulnerable. Inland marine provides scheduled coverage that GL and property policies exclude.
Tools & Equipment in Transit
LA contractors transport tools and equipment across the metro's sprawling geography daily — from shop to job site, between multiple active projects, and to specialty fabrication shops. Equipment in transit is excluded from most property policies. An inland marine floater covers your tools, equipment, and materials while in transit on LA's freeways, at temporary storage, and at job sites you don't own. Coverage follows your equipment wherever the work takes you.
Leased & Rented Equipment Gaps
LA contractors regularly rent excavators, cranes, aerial lifts, and specialty equipment from rental companies. The rental company's insurance waiver typically costs 15-20% of rental value and provides limited coverage. Your inland marine policy can cover rented equipment at a fraction of the waiver cost while providing broader protection — including coverage for rental equipment damage that the waiver may exclude (tire/track damage, overloading, operator error).
Installation Floater for High-Value Work
Los Angeles's luxury residential market (Beverly Hills, Bel Air, Malibu) and commercial tenant improvement projects involve high-value materials and installations — custom millwork, imported stone, smart home systems, and specialty mechanical equipment. An installation floater covers these materials from the moment they leave the supplier through installation and testing. Standard GL doesn't cover materials in your care, custody, or control.
What LA Inland Marine Covers
Inland marine is the only policy that follows your tools, equipment, and materials to every job site, in transit, and in storage — filling the gaps your GL and property policies leave open.
- Contractor's equipment floater — scheduled coverage for owned tools, equipment, and machinery at replacement cost
- Tools floater — blanket coverage for hand and power tools with per-item and aggregate limits (no scheduling required for items under threshold)
- Leased/rented equipment — coverage for equipment rented from dealers, often replacing expensive rental company damage waivers
- Equipment in transit — protection for tools and materials being transported between LA job sites, shops, and storage
- Installation floater — covers materials and equipment from supplier shipment through installation and testing at the project site
- EDP/technology equipment — coverage for surveying instruments, drones, tablets, and construction technology on job sites
- Rigging and scaffolding — coverage for temporary structures, formwork, and rigging equipment used across multiple projects
- Motor truck cargo — coverage for construction materials being transported by your vehicles to LA job sites
Real-World Claim Scenario
DTLA High-Rise Tenant Improvement
An electrical contractor performing a $1.8M tenant improvement on the 22nd floor of a DTLA high-rise had $68,000 in tools and specialty testing equipment stolen overnight. The thieves accessed the building's freight elevator using a stolen access card and removed three rolling tool carts, a thermal imaging camera, a power quality analyzer, and 12 cordless tool kits from the unsecured work area.
The general contractor's site security didn't cover subcontractor tool theft. The building owner's property policy excluded subcontractor equipment. The electrical contractor's GL policy didn't cover owned property. Only the contractor's inland marine floater responded — covering the full replacement cost minus a $1,000 deductible.
Total Loss: $68,000
- • Cordless tool kits (12 sets): $18,000 (covered at replacement cost)
- • Thermal imaging camera: $12,000 (covered at replacement cost)
- • Power quality analyzer: $8,500 (covered at replacement cost)
- • Specialty testing equipment: $15,500 (covered at replacement cost)
- • Rolling tool carts & hand tools: $14,000 (covered at replacement cost)
- • Deductible: -$1,000
The inland marine floater covered $67,000 in stolen tools and equipment — without it, the contractor would have absorbed the full loss and potentially been unable to complete the project on schedule.
Inland Marine Resource Library
In-depth guides on inland marine and equipment coverage for LA contractors — from tool floaters to installation coverage and theft prevention.
LA Inland Marine FAQ
What's the difference between inland marine and general liability for tools?
General liability covers damage your tools cause to others' property — it does NOT cover damage to or theft of your own tools and equipment. Inland marine (contractor's equipment floater) covers YOUR tools and equipment against theft, damage, and loss wherever they are — on the job site, in transit, or in storage. If your $15,000 laser level is stolen from an DTLA job site, GL won't pay. Inland marine will.
How much does inland marine insurance cost for LA contractors?
Inland marine premiums typically run 1-3% of total insured equipment value annually. A contractor with $200,000 in tools and equipment might pay $2,000-$6,000/year. Factors include equipment types, security measures (locked storage, GPS tracking, camera systems), LA zip code, claims history, and deductible selection. Higher deductibles ($1,000-$2,500 vs. $500) can reduce premiums 15-25%. We shop 50+ carriers for competitive rates.
Should I buy the rental company's damage waiver or use my inland marine?
In most cases, your inland marine policy covers rented equipment at a fraction of the rental company's damage waiver cost. Rental waivers typically add 15-20% to the rental rate and often exclude tire/track damage, overloading, and operator error. Your inland marine policy provides broader coverage at lower cost. However, verify your policy includes rented equipment and has adequate per-item limits before declining the waiver. We structure policies specifically to replace rental waivers.
Does inland marine cover theft from my work truck overnight?
Yes — inland marine covers tools and equipment theft from vehicles, though carriers may impose security requirements (locked toolboxes, enclosed cargo areas) and may apply different deductibles for unsecured vs. secured storage. In LA's high-theft environment, we recommend GPS-enabled tool tracking, locked gang boxes, and overnight secured storage when possible. Some carriers offer premium credits for documented security measures.
What installation floater coverage do LA contractors need?
Installation floaters cover materials and equipment from the moment they leave the supplier through installation and testing. For LA's luxury residential market, this covers custom cabinetry ($50K-$200K+), imported stone ($30K-$100K+), smart home systems ($25K-$150K+), and specialty HVAC equipment. Coverage should include transit, temporary storage, and the installation period. We structure installation floaters for individual high-value projects or as annual blanket policies for contractors with ongoing installation work.
Protect Your Tools & Equipment with Inland Marine Coverage
Don't wait for a $50,000 theft loss to discover your GL doesn't cover your tools. Inland marine coverage starts at 1-3% of equipment value — protecting everything from hand tools to heavy machinery.