Compare tool insurance

If you’re a tradesperson – be it a carpenter, joiner, electrician or plumber – tools of the trade are essential to your business. Without them, you can’t work – it’s as simple as that.

That’s why it’s important to have the right kind of insurance in place to protect your tools and keep your business running smoothly.

If you’re a tradesperson – be it a carpenter, joiner, electrician or plumber – tools of the trade are essential to your business. Without them, you can’t work – it’s as simple as that.

That’s why it’s important to have the right kind of insurance in place to protect your tools and keep your business running smoothly.

Emily Kindness
From the Business team
4
minute read
Do you know someone who could benefit from this article?
Posted 30 NOVEMBER 2021

What is tool insurance?

Tool insurance could cover the cost of replacing your tools if they end up lost or damaged as a result of fire, flood or theft.

You might want to cover the following equipment:

  • handheld tools
  • power and non-power tools
  • plant equipment
  • owned, loaned, leased or hire-purchased tools.

Specialist tools can be expensive. If you lose yours and have to wait until you can afford to replace them, you could end up losing valuable customers. With tool insurance in place, you can quickly replace your tools and carry on working with minimal disruption to your business.

You can buy tool insurance as part of a business insurance package, alongside other cover like public liability insurance. When you compare with us, you can add tool insurance to your quote, which covers:

  • handheld tools
  • portable power tools
  • tools at your business premises, in your vehicle or on site
  • tools left in a vehicle overnight.

How does tool insurance work?

Tool insurance can be an add-on to your general business insurance. The main factor to consider is how much protection you want – cover can range from around £1,000 to £10,000.

The first thing to do is list all the tools you own – there are likely to be more than you think. Now consider how much those tools are worth; that’s how much cover you’ll need. It’s easy to underestimate this but think about how much it would cost you to replace them – not how much you paid for them.

What does tool insurance cover?

The benefits of tool insurance can vary among providers, but may include:

  • 24/7 cover – this means your tools are protected overnight
  • EU cover – useful if you travel to Europe for work
  • cover for tools at home, as well as in the workplace
  • ‘tools in transit’ cover – that means your tools are protected when you’re out on the road
  • hired-in plant cover – cover for specialist tools you rent.

Always read the policy terms and conditions before you buy, so you know exactly what you’re covered for.

What else should I consider when taking out tool insurance?

Before you take out a separate policy, check to see if you’re already covered on your existing insurance. Your tools may already be included in your business or home insurance, for example.

If you use a van for work, check if your tools are covered as part of your van insurance. If you work from home, let your insurance provider know. They may be able to extend your home contents insurance to cover work-related tools.

Check the excess. Paying a higher voluntary excess (the amount you pay towards any claim you make on your insurance) could help reduce the cost of your premium. But this doesn’t make sense if the excess is more than it would cost to replace the lost or stolen tool.

Watch out for exclusions. You may find that your policy comes with certain conditions attached: for example, that you have to keep your tools under lock and key. Also check whether tools owned by employees are covered, and any cover limits per person.

Top tips for keeping your tools safe

Thefts of tools worth thousands of pounds from building sites and vans aren’t uncommon. So it’s more important than ever to keep your tools safe.

As well as helping to protect your tools, these tips could also reduce the cost of your premium:

  • Don’t leave tools in your van overnight.
  • If you must leave your tools in a van, make sure the vehicle is alarmed and the tools are out of sight.
  • Keep your van parked securely overnight. If possible, park against a wall.
  • Install security systems, such as CCTV, wherever you keep your tools. Consider smart security systems you can control from your phone.
  • Mark your tools with an address and phone number in invisible ink. This will increase your chances of getting them back if they’re stolen.
  • Register your tools’ serial numbers in an online database.

Frequently asked questions

Where can I compare insurance with tool cover?

If you’re searching for a business insurance quote, tell us that you also need tool cover.

What doesn’t tool insurance cover?

There’s a few things that tool insurance won’t cover. These include:

  • Wear and tear. If your tools wear out or break.
  • Deliberate damage. If you, or one of your colleagues, deliberately damage your tools.
  • Manufacturing faults. These should be covered by the warranty.

Do I need to keep receipts?

When it comes to making a claim, it’s helpful to have as much information as possible to hand. That’s why it’s always a good idea to keep receipts, serial numbers and any other information you might have about your tools.

Looking for a quote?

Compare business insurance from leading providers

Get a quote
Get a business insurance quote and you could start saving now Start a business insurance quote