I dropped my $2,500 Hilti rotary laser. The glass didn’t break, but now it shoots 2 inches low at 100 feet. It’s useless. I filed a claim. The adjuster said, “There is no physical damage. We don’t cover loss of calibration.”
Key Takeaways
- Physical Damage Requirement: Most Inland Marine policies require “direct physical loss or damage.” If the tool looks fine but doesn’t work, it’s considered “mechanical breakdown” or calibration issue, which is excluded.
- Visible Proof: To get coverage, there usually needs to be external evidence of the drop (cracked case, dent).
- “Calibration” Exclusion: Many policies specifically exclude “cost to calibrate” unless it results from a covered peril (like theft recovery or fire).
- The “All-Risk” Fix: A specialized “Surveyors” or “Precision Instruments” floater covers drops and internal damage even without external signs, but it costs more.
The “Why” (The Trap): Breakdown vs. Damage
Insurers treat internal misalignment as “Mechanical Breakdown.”
- Breakdown: The machine failed internally (excluded).
- Damage: External force broke it (covered).
If you say “It just stopped working right,” they deny it.
If you say “I dropped it 10 feet onto concrete,” they look for the dent. No dent? They suspect it just drifted out of calibration naturally (wear and tear).
The Investigation: “I Called Them”
I claimed a faulty laser.
1. The Honest “It’s Drifting” Claim
- Result: Denied. “Maintenance issue.”
2. The “Dropped” Claim (Standard Policy)
- Result: Adjuster asked for photos. Saw no cracks. Denied. “No evidence of physical damage.”
3. The “Precision Instrument” Endorsement
- Carrier: CNA / Inland Marine specialist.
- Result: Covered. They paid for the repair/recalibration by the manufacturer because the policy covered “Root cause accidental drop.”
Comparison Table: Laser Coverage
| Scenario | Standard Tool Policy | Precision Instrument Floater | Warranty |
| Drifts over time | Denied (Wear/Tear) | Denied | Covered (Maybe) |
| Dropped (Cracked) | Covered | Covered | No |
| Dropped (No Crack/Off Level) | Denied | Covered | No |
Step-by-Step Action Plan
- Schedule Lasers Separately: Don’t lump them in “Blanket Tools.” List them as “Surveying Equipment.” This often triggers better coverage terms.
- Document the Drop: If you drop it, photograph the scene immediately. Even a scuff mark is “physical damage.”
- Get a Repair Estimate: Send it to the manufacturer (Hilti/Topcon) for an estimate. If the report says “Internal prism shattered due to impact,” that is your proof of physical damage, even if the case is fine.
- Buy the Manufacturer Protection: Hilti’s “Fleet Management” or protection plans are often better than insurance for calibration issues. They repair it no questions asked.
FAQ
Q: Is the cost of the calibration service covered?
A: Only if it is part of the repair for a covered accident. Routine calibration is maintenance (you pay).
Q: What if I laid out a foundation wrong because the laser was off?
A: That is Professional Liability (Errors & Omissions), not tool insurance. And most contractors don’t have E&O. You’d likely be paying for the bad foundation yourself.
[IMAGE: Diagram showing a laser level internal mechanism with a “Shock Damage” label.]