Texas Inland Marine Insurance for Contractors

Inland marine insurance for Texas contractors covers movable property and equipment that standard commercial property policies exclude or limit. This includes contractor tools and equipment at job sites, materials in transit between locations, installation materials before they become part of a permanent structure, rented or leased equipment you are responsible for, and temporary structures like scaffolding and formwork. Unlike a commercial property policy tied to a fixed location, inland marine follows your equipment wherever it goes across Texas — from a Houston high-rise to an Austin subdivision to an energy site in the Permian Basin.

Texas inland marine insurance typically costs between 1% and 3% of the total scheduled equipment value per year. A small electrical contractor with $50,000 in tools and equipment pays roughly $350–$750 annually. A mid-size general contractor with $350,000 in scheduled equipment pays $3,600–$7,200 per year. Energy sector contractors with specialized rigs and pipeline equipment valued at $1.5M+ can expect premiums of $13,500–$40,000 annually. Deductibles range from $500 for small schedules to $50,000 for large fleet programs. Factors affecting price include equipment age, storage security, loss history, and whether items are scheduled (specifically listed) or covered under a blanket limit.

A contractors equipment floater is the most common form of inland marine coverage for Texas construction companies. It is an all-risk policy that covers owned mobile equipment and tools against theft, vandalism, fire, collision, overturn, and weather damage — including hail and wind, which are critical perils in Texas. Equipment is either individually scheduled (listed by serial number and value) or covered under a blanket limit. Scheduled items are covered for agreed value with no depreciation at claim time. Blanket coverage applies a single aggregate limit to all unscheduled items, typically with a per-item cap of $5,000–$25,000.

Yes, but only if your policy includes a rented or leased equipment endorsement. Most Texas equipment rental companies (United Rentals, Sunbelt, H&E Equipment) require renters to either purchase the rental company's damage waiver or provide proof of inland marine coverage with the rental company named as loss payee. Adding rented equipment coverage to your inland marine policy is almost always cheaper than paying per-rental damage waivers. A typical endorsement adds 10–20% to premium and covers the replacement cost or rental value of equipment in your care, custody, and control.

Texas law does not mandate inland marine insurance for contractors. However, it is effectively required in practice. Most general contractors and project owners in Houston, Dallas, Austin, and San Antonio require subcontractors to carry inland marine or equipment floater coverage as a condition of their subcontract. Equipment rental agreements universally require it. And any contractor financing equipment through a bank or leasing company will have an inland marine requirement written into the loan or lease covenant. Beyond contractual requirements, operating without inland marine in Texas means one stolen truck-load of tools or one hailstorm on an open job site can wipe out your working capital.

Inland marine and builders risk serve different purposes for Texas contractors. Builders risk covers the structure being built — the building itself, permanent materials, and fixtures once installed — from ground-breaking to substantial completion. Inland marine covers the contractor's own movable property: tools, equipment, machinery, and materials before installation. A Texas contractor typically needs both: builders risk protects the project owner's investment in the structure, while inland marine protects the contractor's investment in the equipment used to build it. On large Texas commercial projects, the GC or owner carries builders risk, and every sub carries their own inland marine.

File an inland marine claim in Texas by following these steps: First, secure the scene and document all damage or loss with photos and video immediately. Second, file a police report if theft or vandalism is involved — Texas insurers require this for any theft claim. Third, notify your insurance broker or carrier within 24–72 hours (check your policy for the exact reporting window). Fourth, provide a detailed inventory of damaged or stolen items, including serial numbers, purchase dates, and replacement values. Fifth, obtain repair estimates from authorized equipment dealers. Most Texas inland marine claims for equipment damage are resolved within 30–60 days. Theft claims may take longer pending police investigation. Scheduled items are paid at agreed value; unscheduled items are subject to actual cash value with depreciation.

Standard inland marine policies cover wind and named-storm damage, but Texas coastal policies often include a separate named-storm or hurricane deductible — typically 2–5% of the total insured value rather than a flat dollar amount. If you operate in Harris County (Houston), Galveston, Beaumont, Corpus Christi, or anywhere within the Tier 1 coastal wind zone, expect higher deductibles and potentially higher premiums for wind and flood exposure. Flood damage is generally excluded from standard inland marine policies and requires a separate flood endorsement or standalone NFIP/private flood policy. Contractors working Texas coastal projects during June–November hurricane season should review their inland marine policy's named-storm provisions carefully.