We chained our $4,000 Honda generator to the fence overnight. The next morning, the chain was cut, and the generator was gone. I filed a claim under my Commercial Property policy (since it was at the “premises”), but they denied it. They said, “That’s mobile equipment, not building property. You needed an Inland Marine floater.”
Key Takeaways
- Property vs. Equipment: Commercial Property insurance covers things that stay put (desks, computers). Generators on wheels are considered “Mobile Equipment” and usually require a separate floater.
- The Chain Doesn’t Count: Securing it proves you weren’t negligent, but it doesn’t change the type of insurance needed.
- Weight Doesn’t Matter: Even if it weighs 500 lbs and takes a forklift to move, if it can be moved, insurers treat it as “Inland Marine” risk.
- GPS Trackers Reduce Deductibles: Some insurers waive the deductible if the generator has a hardwired GPS tracker that aids recovery.
The “Why” (The Trap): The “Mobile Equipment” Definition
In insurance policies (ISO forms), “Mobile Equipment” is a specific category. It includes bulldozers, forklifts, and often, large portable generators/welders.
A standard “Business Personal Property” policy covers contents inside your building. Once that generator leaves your shop and goes to a job site (or even sits outside), it falls into a coverage gap unless you have an Inland Marine / Contractors Equipment policy.
The Investigation: “I Called Them”
I checked how to insure a Towable Generator vs. a Portable Generator.
1. The Towable (On a Trailer)
- The Verdict: If the generator is permanently mounted to a trailer, it needs Commercial Auto (for liability while towing) AND Inland Marine (for theft of the unit). Auto liability covers the damage it causes if it uncouples; Inland Marine covers if it gets stolen.
2. The Portable (Honda EU7000)
- The Verdict: This is purely Inland Marine.
- The Quote: Adding a $4,000 generator to a tool floater cost about $60/year.
- The Catch: It must be “Scheduled” because it exceeds the typical $1,000 blanket limit.
3. Renting a Generator
- The Verdict: If you rent one, you must buy the rental yard’s “Damage Waiver.” Your standard tool policy likely has a low limit for “Rented Equipment” unless you increased it.
Comparison Table: Generator Insurance Types
| Generator Type | Required Policy | Estimated Cost |
| Standby (Bolted to Building) | Commercial Property | Low (Part of Building) |
| Portable (Wheeled) | Inland Marine (Tool Floater) | ~$1.50 per $100 value |
| Towable (Trailer) | Inland Marine + Auto Liability | Higher (Road risk) |
Step-by-Step Action Plan
- Weld or Epox a GPS Tracker: Don’t just stick an AirTag on it (thieves find those). Hide a hardwired GPS unit inside the housing.
- Schedule It: Call your agent today. Give them the serial number. If it’s not on the schedule, it’s likely over your “Per Item” limit.
- Photograph the Setup: When you leave it on site, take a photo of the chain/lock setup. If it’s stolen, the adjuster will ask, “What security measures were in place?” You show the photo.
- Check “Theft from Jobsite” Deductible: Some policies have a higher deductible ($1,000 or $2,500) for theft from an open job site vs. theft from a locked building.
FAQ
Q: Does chaining it to a tree count as “Secured”?
A: Usually yes, provided the chain is of “hardened steel.” A bicycle cable lock might be deemed “insufficient security” for a $5,000 item.
Q: What if I run it inside a van?
A: Dangerous (carbon monoxide), but if stolen along with the van, it falls under the “Auto vs. Tools” debate. (See previous set: Auto covers the van, Inland Marine covers the generator).
[IMAGE: Graphic showing a generator with a “Scheduled” checkmark vs a generic toolbox with a “Blanket” checkmark.]