Scheduled vs Blanket Tool Coverage: Which Option Fits Your HVAC Company?

As an HVAC contractor in the United States, your tools are both your capital and your livelihood. Choosing the right contractors' equipment or inland marine coverage—scheduled (itemized) vs blanket (aggregate) tool coverage—impacts your premiums, claims experience, and recovery speed after theft, transit damage, or on-site loss. This article compares both options, provides realistic cost expectations, and helps owners in cities like Los Angeles, CA; Houston, TX; and Chicago, IL decide which approach best fits their business.

Table of Contents

Quick definitions

Scheduled coverage: Each high-value tool or piece of equipment is listed on the policy with a specific insured limit and usually a photo/serial number. Payment on a covered loss is up to the scheduled amount for that item.
Blanket coverage: A single total limit covers all listed categories or all tools in aggregate (e.g., $25,000 total for all portable tools). The carrier pays up to the blanket limit for losses across the entire inventory.

Why this choice matters for HVAC contractors

Claims certainty: Scheduled tools reduce disputes over value; carriers have agreed limits up front.
Cost control: Blanket coverage can be cheaper for many lower-value items but may underinsure high-ticket pieces.
Operational continuity: Fast replacement of diagnostic meters and refrigerant recovery machines matters more than replacement of hand tools.

Cost expectations and market pricing (US)

Premiums vary by location, exposure, and limits. Below are realistic market ranges based on industry carriers and insurer guidance:

Typical annual cost for blanket inland marine / contractors’ equipment coverage: roughly $200–$1,200 for small-to-midsize HVAC firms depending on limits and deductible.
Typical annual incremental cost to schedule high-value items (per item): $25–$150 per year per high-value tool depending on item value and peril selection.
Examples from major providers:
- Next Insurance (small commercial HVAC policies) advertises fast online quotes; small contractors commonly see combined equipment endorsements for an additional $100–$600/year depending on limits and state. (See Next Insurance HVAC pages for local quotes.)
- The Hartford’s contractors’ equipment guidance shows contractors’ equipment/inland marine premiums varying widely based on schedule value and exposure—commonly $300–$2,000/year for standalone equipment policies for typical small-to-medium contractors.
- Nationwide and other carriers note inland marine is priced on the total insured value and risk profile; typical small contractor premiums often fall in the low hundreds to low thousands annually.

Sources: The Hartford, Nationwide, Next Insurance (see links in the Sources section).

Scheduled vs Blanket — direct comparison

Feature	Scheduled Coverage (Itemized)	Blanket Coverage (Aggregate)
Best for	High-value tools (e.g., refrigerant recovery machines, vacuum pumps, specialty gauges)	Large quantities of lower-value portable tools
Cost structure	Higher per-item admin but predictable settlement	Lower administrative cost; simpler limits
Claim payment	Up to the scheduled amount per item	Paid from single pool until the aggregate limit is exhausted
Proof required	Serial numbers / receipts often required	Inventory lists suffice; fewer per-item proofs up front
Risk of underinsurance	Low (per-schedule agreed value)	Higher for expensive items unless limits large enough
Theft/transit exposure	Fast replacement if scheduled correctly	May lead to partial pay-outs if many items lost simultaneously
Best use case	HVAC shops with multiple specialized machines worth $1,000+ each	Field crews carrying many hand tools and meters under a consolidated limit

City-specific considerations

Los Angeles, CA: High theft rates for tools in urban job sites. Scheduling critical refrigeration machines and laptop-based diagnostic gear makes sense. Consider higher limits for blanket policies or a mixed approach.
Houston, TX: Coastal and high-construction activity increases transit and storage exposure. Inland marine endorsements that cover materials in transit and jobsite gear are important.
Chicago, IL: Seasonal demands and frequent subcontractor usage make pooled blanket limits attractive, but schedule HVAC-specific high-value instrumentation.

Mixed strategy: When to combine both

Many HVAC firms benefit from a hybrid approach:

Blanket limit ($X total) for general tool inventory (sockets, wrenches, typical hand tools).
Scheduled coverage for high-ticket items (electronic refrigerant analyzers, digital manifolds, recovery units, specialized vacuum pumps, and service vans if applicable).

A sample working arrangement:

Blanket limit: $25,000 for all portable tools and meters.
Schedules: $5,000 each for two recovery units, $3,000 for a specialized leak detection system, $2,000 for a laptop-based diagnostic suite.

Practical selection checklist

Inventory all tools with current values (replacement cost). See our inventory checklist: Checklist for Inventorying and Insuring Portable HVAC Tools and Diagnostic Equipment.
Identify items valued over $1,000–$2,000 for scheduling consideration.
Map theft and transit risk by city/jobsite (urban sites with overnight vehicle storage have higher theft risk).
Get competing quotes: ask insurers for both blanket and scheduled quotes for identical totals to compare effective premium per $1,000 of coverage.
Consider endorsements: rental reimbursement, replacement cost vs actual cash value (ACV), and off-premises coverage. See guidance: How to Value and Schedule High-Value HVAC Equipment on Your Policy.

Example pricing scenarios (illustrative)

Small 2-tech HVAC company in Houston:
- Blanket $20,000 limit: premium estimate $350–$600/year.
- Scheduling two $4,000 recovery units ($4,000 scheduled each): additional $80–$300/year per scheduled item depending on carrier and perils.
Medium 6-tech company in Los Angeles:
- Blanket $50,000: premium estimate $800–$1,600/year.
- Scheduling five high-value items (cumulative $25,000 scheduled): additional $300–$900/year total.

(Actual premiums vary; obtain local broker quotes for precise pricing.)

Choosing deductibles and limits

Deductible tradeoffs: higher deductibles lower premium but increase out-of-pocket cost on common small thefts. Typical deductibles range $250–$1,000.
Replacement cost vs ACV: replacement cost coverage increases premium but speeds full recovery—valuable for mission-critical equipment. See our related topic on valuation and policy choices: How to Value and Schedule High-Value HVAC Equipment on Your Policy.

Loss control best practices (reduce premiums & claims friction)

Maintain a current digital inventory + photos/serial numbers.
Use vehicle toolboxes with locks and alarmed vans.
Document chain-of-custody for tools left on sites; limit overnight on-site storage if possible.
Consider CCTV or GPS trackers for vans and high-value tools.
Read practical prevention measures: Theft, Loss and Transit Risk Management for HVAC Tools: Insurance and Prevention Tactics.

Recommended next steps

Create a prioritized list of every tool valued over $500. 2. Request both blanket and scheduled quotes from 2–3 carriers (e.g., Next Insurance, The Hartford, Nationwide) focusing on your city’s claims history. 3. Adjust deductibles and limits to balance premium with your cash-flow ability for replacements.

Sources

Next Insurance — HVAC contractor insurance overview and small business quote system: https://www.next-insurance.com/small-business-insurance/hvac-contractor-insurance/
The Hartford — Contractors’ equipment/contractors equipment insurance information: https://www.thehartford.com/business-insurance/contractors-equipment-insurance
Nationwide — Contractors equipment and inland marine insurance info for contractors: https://www.nationwide.com/business/insurance/contractors-equipment

Internal resources

Make your choice based on the mix of high-value items, local theft/transit risk, and your business’s tolerance for downtime—often the best solution is a tailored hybrid of scheduled plus blanket coverage.