Looking for Tool Insurance?
No matter what field of work you’re in, you’re going to heavily depend on your tools. If they’re lost, damaged or stolen it can mean down-time which can not only leave customers disappointed, but can also have financial repercussions too.
Tools are likely to be an expensive piece of kit and are essential to your business so taking out a tool insurance policy could be a smart idea. If something happens to them, you’ll not only need to pay for replacements or repairs, but you might have to turn away customers in the meantime which means expensive down-time.
Who might need tool insurance?
There are many trades and businesses that will need to use tools such as:
- Tradesmen (builders, plumbers, carpenters, plasterers, decorators, electricians)
- Dog groomers
- Jewellery makers
How to keep your tools safe
Some insurers can offer a lower tool insurance monthly premium if they are sure that you’re keeping your tools safe and in proper working order. Taking steps to look after them will also enhance your business.
If you’ve got a number of tools then it might be worth making a list to keep track and replace any if they go missing, and give insurers an accurate picture of what you need covered.
You can tag pricey equipment or tools with an invisible pen or marking system which will help to get them back to you if they are stolen and found.
Whether your tools are kept at home, a workshop or storage facility, make sure you’re fitting CCTV or an alarm to protect against theft.
Keeping tools safe in your van
Keep tools out of plain sight and remove them at night to store somewhere secure. Sometimes tools can also be covered under commercial van insurance, but you’ll need to check your policy.
Tool Insurance – Useful FAQs
This will depend on a number of factors. If you included your tools in the list of things to be covered when you took your house insurance out then they may be, you just need to check the exclusions. Be careful though, some insurers have an upper limit for the value of tools they’ll include, so if yours is higher than you’ll need to take out a separate policy.
Instead of insuring tools, some business owners will set aside money each month in a reserve fund to cover any tools that are damaged, go missing or are stolen. However, this can be quite risky if something happens to them before you’re able to build up enough of a buffer.
Although some insurers may have certain exclusions, it’s most likely that you’ll be able to cover both hand tools and power tools and equipment under a tool insurance policy.
In some cases, your tools can be covered if you’ve got a goods in transit policy, however these often have an upper value limit and a number of exclusions, for example if your tools were damaged due to them not being secured properly when on-the-go.
This will depend on your policy, but quite often insurers will not include laptops, phones, audio/visual equipment or cash. So, you’ll need to find a separate policy that does take care of this type of claim.