Looking for Business Equipment Insurance?
Sometimes known as ‘tool insurance’, business equipment insurance is a level of protection against the things you need to make your business work.
Business equipment insurance offers cover for those that use tools, machinery or equipment for their business. Whether it’s the scissors and straighteners at a salon, the nail-gun of a carpenter, or even the needles and ribbon of a tailor – the equipment that you use isn’t just integral to being able to fulfil orders or carry out a service, but it is most likely a large financial investment.
Who needs business equipment insurance?
There are many types of professions that use tools and equipment to help them carry out their service or produce goods for customers to buy:
- Beauty therapists
- Pubs and restaurants
- Furniture makers
- Coffee shops
- Fast food outlets
If your equipment is particularly specialist, keeping in mind the additional time and expense to replace it, equipment insurance can come in very handy.
Remember to give your insurer a full picture of all the tools you want to cover when purchasing your business equipment insurance policy – if you underestimate the value, your claim could be denied and your policy invalid.
Equipment cover wherever you are
Whether loss, malicious or accidental damage, or even theft happens at your workshop, from your van, on-site at your current job or even at your shop, business equipment insurance can help to cover the tools of your trade – some insurers can even cover you if you need to travel abroad with your equipment too.
Do be wary if you’re keeping tools in your unattended van overnight. Some insurers may offer that as standard in their cover, but others may actually consider it to be an exclusion.
What exclusions could there be?
As business equipment insurance can cover such a broad range of tools and equipment across a swathe of industries and professions, it comes as no surprise that there could be a number of exclusions to your policy.
It’s important to not only ensure you’re purchasing enough cover so that you’re not left out of pocket, but that you check the small print too. Things like the following are typically not covered:
Own plant or hired-in plant cover
Business equipment insurance can also protect equipment and tools that you’ve hired to help you on a particular job. You might not always have the necessary items to get the job done, so if you’re hiring in (most likely very expensive) equipment, you’ll want the peace of mind that you could afford to replace it. Insurers will often class owned and leased equipment as:
Your personal tools that you (or your business) owns.
Tools and equipment that you’ve hired from an external company.
Business Equipment Insurance – Useful FAQs
Usually no. Of course, every insurer is different, so you’ll need to check the terms and conditions
This will differ between insurers, but often they will impose a maximum total claim amount, as well as a maximum individual tool value.
Be careful with the policy excess – if it is too high then it might make claims pointless and the policy feel worthless.
Taking extra security steps can not only help to keep your monthly premium down, but also make you feel more confident too:
- Keep items hidden from view in vehicles and remove overnight
- Keep receipts from big ticket purchases and a log of all tools
- Fit extra security like CCTV and better locks
- Mark tools and equipment with unique markings using invisible pen
You could still be covered if you’re using the tool in a personal capacity. Some insurers offer protection against loss, theft or damage even if it’s not for something associated with work or your business.