I was showing a client a 3D render on my iPad Pro ($1,200). I tripped over a drop cloth, and the iPad smashed onto the concrete. I claimed it under my “Tool Floater.” Denied. “Electronic Data Processing (EDP) equipment is excluded from the definition of ‘Tools’.”
Key Takeaways
- Tools vs. Electronics: Insurers distinguish between “Contractor Tools” (drills, saws) and “Electronics/EDP” (laptops, tablets, phones). A standard tool policy often excludes electronics.
- EDP Coverage: You need a specific endorsement called “Electronic Data Processing” or a “Mobile Electronics” floater to cover iPads and laptops used in the field.
- Drop Coverage: As with tools, ensure the electronics policy covers “Accidental Damage” (drops), not just theft.
- Software/Data: Hardware is cheap; data is expensive. EDP coverage often includes costs to restore lost data or software, which standard tool insurance does not.
The “Why” (The Trap): Fragility and Obsolescence
Insurers separate electronics because:
- They break easily: A drill survives a drop; an iPad does not.
- They become obsolete: A 5-year-old saw is useful. A 5-year-old iPad is a paperweight.
Because the risk profile is different, they are moved to a different policy section with a higher rate or different deductible.
The Investigation: “I Called Them”
I shopped for coverage for a field laptop and iPad.
1. Standard Tool Floater
- Result: Specifically excluded “Computers, Cell Phones, and Tablets.”
2. AppleCare+ / Manufacturer Plan
- Cost: ~$150/2 years.
- Coverage: Covers accidental drops ($49 deductible).
- My Analysis: For single items like an iPad, this is better and cheaper than commercial insurance. It has zero claims hassle.
3. Commercial EDP Rider
- Cost: Added to business policy. Covers theft and drops.
- Benefit: Covers all devices in the business, not just one. Good if you have 10 employees with iPads.
Comparison Table: Protecting Field Tech
| Device | Tool Insurance | EDP Insurance | AppleCare/Warranty |
| Drill | Covered | Not Covered | No (Drops) |
| iPad | Excluded | Covered | Covered (Best) |
| Laser Level | Covered | Sometimes | No |
| Drone | Excluded | Excluded (Aviation) | DJICare (Best) |
Step-by-Step Action Plan
- Buy the AppleCare/Protection Plan: When you buy the device, just buy the plan. It is the most efficient way to handle screen cracks.
- Back Up Data: Insurance replaces the iPad, not the blueprints. Use cloud storage (OneDrive/iCloud).
- ** ruggedize:** Put it in an OtterBox or Survivor case. Insurance denies claims for “wear and tear,” but a case prevents the damage in the first place.
- Check “Laser” Classification: Laser levels/transits are often in a grey area. Ensure they are listed as “Surveying Equipment” on your tool schedule, as they are fragile like electronics.
FAQ
Q: Is my phone covered?
A: Almost never on a business policy. Use your mobile carrier’s insurance or buy an unlocked phone with a manufacturer protection plan.
Q: What about the software I bought?
A: EDP coverage often includes a sub-limit for “Data and Media” to rebuy software licenses.
[IMAGE: Screenshot of an “Exclusions” page listing “Computers, Peripheral Devices, and Software.”]