Do contractors need inland marine insurance if they have general liability?

General liability insurance covers third-party bodily injury and property damage claims arising from the contractor's operations. It does NOT cover damage to or loss of the contractor's own tools, equipment, or mobile machinery. That's an inland marine exposure. Without an inland marine policy (or contractor's equipment floater), a contractor whose tools are stolen from a job site, equipment damaged in a job-site accident, or generator destroyed in a fire would pay out of pocket. Most general contractors carrying $500K+ in tools and equipment carry contractor's equipment coverage. The pricing is typically $500 to $5,000 annually depending on equipment values, and many policies offer scheduled coverage for higher-value items.