Tradesmen Tool Insurance – What is covered?

Why insurance for your tradie tools is vital.

For tradies, tool insurance is often one of the most important forms of insurance because of how often they use tools in their day to day work.  If your tools are lost, stolen or damaged, it can be very expensive to have them replaced.  But before you take out your tool insurance, it’s important to know what it covers so you can be sure it suits your situation.

What does it tools insurance cover?

There are a number of different policies that offer tool insurance for tradies so it’s important to read your policy before signing up so you’re sure it best suits your needs.  Most policies will cover tools up to a certain amount and it’s important to remember to specify the cost of more expensive tools so you’re not caught short at claim time.  However, some policies don’t require this and will cover up to the sum insured.  Tool insurance policies will usually cover the loss, theft or damage of tools which are held at home, in a locked box, or in a locked vehicle.

Always look for a policy that covers replacement cost rather than the existing cost of the item as this will account for any price increases.  The exclusions of your tool insurance policy will vary according to your policy so it’s important to choose a policy that best suits you.  For example, many insurers won’t cover the cost of the tools are left out in the open or onsite overnight.  There are some policies that will cover theft even if the tools have been left out but your premiums are likely to be a lot more expensive.

To make things easier for you when it comes to claim time, keep a list of your tools handy, or take photos of them, so you know exactly what would need to be replaced.  It can often come as a surprise to tradies just how many tools they have lying around!  It is especially useful if you’re unlucky enough to lose all your tools in one go.  If you’re not sure if you want to bother with tool insurance, add up how many tools you have and you might be surprised at how expensive they would all be to replace.

Do I need tool insurance?

If you use tools in your everyday work, the short answer is yes.  Tools can be very expensive to replace and without insurance, you’ll have to pay for them out of your own pocket.  Because of the areas that tradies work in, there can be a higher risk of something going wrong and tools can amount to hundreds, and sometimes even thousands, of dollars.  Also, if you can’t afford to replace your tools straight away, it could mean that you’re unable to work for a period of time.  Having tool insurance in place also means that you’ll be more confident when spending money on more expensive equipment as you know you’ll be protected financially.