My helper, a young apprentice, leaves his tools in my truck because he drives a sedan. The truck was broken into. My tools were covered. His $2,000 set of Milwaukee tools was denied. My insurer said, “We cover the Named Insured’s property. These belong to John Doe.”
Key Takeaways
- Insurable Interest: You generally cannot insure property you do not own. Since the apprentice owns the tools, your policy doesn’t cover them by default.
- “Employee Tools” Rider: You can add an endorsement called “Employee Tools” or “Personal Effects of Employees.” It extends your coverage to their gear while on your job/vehicle.
- Subrogation Risk: If your apprentice has his own renters insurance and files a claim, his insurer might sue you (Subrogation) for negligence if the theft was your fault (e.g., unlocked truck).
- The “Helper” Agreement: Make it clear in writing: are they responsible for their own tools, or are you?
The “Why” (The Trap): “Property of Others”
Standard Commercial Property policies cover:
- Your Property.
- Property of Others in your care, custody, or control (limited).
However, Inland Marine (Tool) policies often strictly define “Covered Property” as property owned by the Named Insured. Unless specifically endorsed, the apprentice’s tools are legal strangers to the policy.
The Investigation: “I Called Them”
I asked how to cover a crew member’s gear.
1. Renters Insurance (The Apprentice’s Policy)
- Scenario: Helper claims on his Renters Ins.
- Result: Usually covered, BUT… they will ask “Why were they in the boss’s truck?” If used for business, his renters policy might deny it under the “Business Pursuits” exclusion. He needs his own business policy.
2. Adding “Employee Tools” Endorsement
- Carrier: Liberty Mutual.
- Cost: ~$50/year for $5,000 limit per employee.
- Result: The best solution. It covers their tools while on your job sites.
3. Buying the Tools Yourself
- Strategy: If you buy the tools and “issue” them to the apprentice, you own them. They are covered under your policy. This gives you control.
Comparison Table: Who Pays?
| Policy Owner | Covers Apprentice Tools? | Notes |
| Boss (Standard Policy) | No | “Not Owned” exclusion |
| Boss (with Endorsement) | Yes | Best option |
| Apprentice (Renters) | Maybe | Risk of “Business” denial |
| Apprentice (Tool Floater) | Yes | Expensive for them |
Step-by-Step Action Plan
- Check Your Policy: Does it list “Employee Tools” under Covered Property? If not, assume they aren’t covered.
- Add the Rider: Call your agent. Add “Employee Tools” coverage. It is a cheap morale booster for your crew.
- Require an Inventory: Tell your apprentice: “If you want me to insure your tools, I need a list and photos today.” No list, no coverage.
- Clarify Ownership: If you provide the tools, mark them as company property. If they leave, the tools stay.
FAQ
Q: If I borrow my helper’s tool and break it, is it covered?
A: See “Borrowed Tools” article. Generally no, unless you have “Property of Others” coverage.
Q: Can I deduct the insurance cost from his paycheck?
A: Check local labor laws. Usually, no, unless agreed in writing, and it often breeds resentment. Just pay the $50.
[IMAGE: Screenshot of an insurance endorsement titled “Employee Tools And Clothing.”]