I was on a ladder inspecting HVAC ducts with my FLIR E8 Pro. It slipped out of my gloved hand, bounced off the rungs, and shattered on the concrete below. It wasn’t stolen. It wasn’t burned. I was just clumsy. I called my agent, hoping for a replacement.
Key Takeaways
- Named Perils vs. All-Risk: Cheap policies are “Named Perils” (Fire, Theft, Lightning). They do not cover dropping stuff (Breakage/Mishandling). You need an “All-Risk” or “Special Form” policy.
- The Deductible Trap: If your camera is worth $2,000 but your deductible is $1,000, you are only getting $1,000. For small tools, insurance is often not worth it.
- Scheduled Items: For high-value electronics (Thermal cameras, Lasers, Drones), you should “schedule” them individually. This often lowers the deductible for that specific item.
- “Sudden and Accidental”: The damage must be a specific event. You can’t claim a drill that just stopped working (wear and tear).
The “Why” (The Trap): The “Breakage” Exclusion
Many Inland Marine policies have an exclusion for “Voluntary Parting” or “Breakage.”
They are designed to cover external forces (thieves, fires), not user error. Unless your policy specifically states it covers “Accidental Damage” or “Drops,” the adjuster will classify this as “mishandling” and deny it.
The Investigation: “I Called Them”
I shopped for “Clumsy Contractor” coverage.
1. Basic Inland Marine (The Standard)
- Coverage: Fire, Theft, Vandalism.
- Dropped Item: Denied.
2. Electronics/Gear Protection (Athos / PPA)
- Coverage: Specialized insurance for photographers and drone pilots often extends to inspection gear.
- Dropped Item: Covered. They are used to cameras being dropped.
- Cost: Higher premium (~2-3% of value per year).
3. All-Risk Tool Floater (Liberty Mutual)
- Coverage: Covers “All risks of direct physical loss unless excluded.”
- Dropped Item: Covered, as long as “employee negligence” isn’t a specific exclusion (rare in All-Risk).
Comparison Table: Dropped Tool Coverage
| Policy Type | Theft? | Fire? | Accidental Drop? |
| Named Perils | Yes | Yes | No |
| All-Risk (Special Form) | Yes | Yes | Yes |
| Manufacturer Warranty | No | No | No (Defects only) |
| Accidental Protection Plan | No | No | Yes (Best for single items) |
Step-by-Step Action Plan
- Schedule the Expensive Stuff: Don’t lump your $2,000 FLIR in with your screwdrivers. List it separately on the policy schedule, and request a $0 or $100 deductible for scheduled items.
- Buy the Extended Warranty (Accidental): For specific electronics (Home Depot / Amazon), the “Pro Protection Plan” is often better than insurance. It covers drops and spills with zero deductible.
- Check the “Collision” Clause: If the tool broke because the truck crashed, that is covered even under basic policies. If you dropped it, that’s different.
- Save the Pieces: Do not throw the broken camera away. The insurer has the right to inspect it (Salvage Rights). If you toss it, they deny the claim.
FAQ
Q: Does it cover water damage if I drop it in a puddle?
A: “All-Risk” policies usually cover this. Manufacturer warranties do not.
Q: Can I claim my drill that burned out?
A: No. “Mechanical Breakdown” and “Wear and Tear” are universally excluded. Insurance is for accidents, not old age.
[IMAGE: Screenshot of a “Scheduled Equipment” list on a policy showing “FLIR Camera – Val: $2,500 – Ded: $250”.]