I finished a job on Friday. On Monday, I went to grab my circular saw from the truck, and it wasn’t there. I checked the shop. Checked the job site. It was just… gone. I filed a claim. The adjuster asked, “Do you have proof of forced entry or a police report?” I said no. Denial letter: “Exclusion: Mysterious Disappearance.”
Key Takeaways
- Missing != Stolen: Insurance covers “Theft” (a crime). It does not cover “losing stuff.” Without evidence of a crime (broken lock, video, police report), it is classified as “Mysterious Disappearance.”
- The Exclusion is Standard: almost every basic Inland Marine policy excludes property that is “missing, where there is no physical evidence to show what happened to it.”
- Inventory Control is Required: If you discover the loss during a “routine inventory” (e.g., “Hey, we’re missing 5 drills”), that is practically never covered. It implies employee theft or clerical error.
- “All-Risk” Can Help: High-end policies (like Chubb) sometimes cover mysterious disappearance, but the deductibles (
500−500−1,000) often make it pointless for single tools.
The “Why” (The Trap): Preventing Fraud
Insurers use the Mysterious Disappearance Exclusion to stop people from financing their forgetfulness or selling their own tools and claiming them as stolen.
If there is no broken window, no cut chain, and no witness, there is no proof a “peril” (theft) occurred. It could have fallen off the tailgate. It could have been left at the client’s house. These are “negligence,” not insurance events.
The Investigation: “I Called Them”
I tried to claim a “missing” tool with three scenarios.
1. “I think I left it at the site.”
- Result: Denied immediately. “Abandonment” or negligence.
2. “It was in the truck Friday, gone Monday. Truck was unlocked.”
- Result: Denied. No signs of forced entry. (See “Unlocked Vehicle” article).
3. “I have a video of a guy walking up the driveway, but I can’t see him take it.”
- Result: Possible approval. The video establishes “probable cause” of theft. The police report is the key. If the police write “Larceny,” the insurer is more likely to pay.
Comparison Table: Theft vs. Disappearance
| Evidence | Classification | Outcome |
| Broken Window / Lock | Burglary | Covered |
| Video of Stranger | Theft | Covered |
| Inventory Count Shortage | Shrinkage | Denied |
| “I can’t find it” | Mysterious Disappearance | Denied |
Step-by-Step Action Plan
- Always File a Police Report: Even if you have no leads. Having a police report converts “I lost it” into “I am reporting a crime.” Adjusters need that paper.
- Use Asset Tags: Scan tools in/out of the truck. If your app shows “Scanned into Truck 1 at 5 PM,” and it’s gone at 8 AM, you have a timeline that supports theft, not loss on the job site.
- Check Your Policy Wording: Look for the exclusion “Mysterious Disappearance.” If it’s there, you strictly need proof of force.
- Accept the Risk: For hand tools, you are self-insuring against loss. Insurance is for the catastrophic break-in, not the misplaced drill.
FAQ
Q: Does a GPS tracker fix this?
A: Yes! If the tracker shows the saw is in a pawn shop across town, that is proof of theft. Mysterious disappearance exclusion no longer applies.
Q: Can I buy a rider for this?
A: Yes, generally on “Musical Instrument” or “Camera” policies, but rarely on “Contractor Tool” policies because the risk is too high.
[IMAGE: Screenshot of a denial letter highlighting the text “Exclusion: Unexplained Loss or Mysterious Disappearance.”]