Tools insurance is a specialised insurance policy designed to protect the tools and equipment you use to run your business. This specialised trade insurance helps safeguard your investment and ensures you can keep working if the tools are stolen or broken. Insurance for your tools will cover the cost to repair or replace your tools of Trade as soon as possible if they are lost, stolen or damaged.
Suppose you must put your work on hold while sourcing or acquiring new tools. In that case, this will not only cause a direct financial loss due to the repair or repurchase costs but also potentially impact your ability to deliver your services. Having tools Insurance in place ensures you can minimise the financial impact of a loss and get back to work as soon as possible.
What does insurance for tools cover?
Tools insurance policies are designed to cover your tools of Trade at your business location and Australia-wide. There are generally two levels of tools cover available:
- A “Listed Events” cover: This provides a limited cover for fire, theft, collision and other perils such as lightning, explosion, malicious damage or vandalism.
- An Accidental Damage cover: This provides more comprehensive coverage and will cover accidental loss and damage to your tools (excluding cover whilst the tool is in use) as well as fire, theft, collision and other perils.
What triggers tools insurance coverage?
It is important to note that most tools insurance policies require “forced and violent entry” to your premises or vehicle to trigger coverage. Some insurers can extend their policy to provide “theft in the open air, “subject to an extra premium.
Crucial consideration must be given to a Tools Insurance Policies “basis of settlement”. Some insurers will only cover the market value of your tools based on age and factoring in depreciation. Atlantic have access to insurance products that will offer you new for old replacements with some conditions on the age of Tools. Please speak with one of our experienced Client Managers today to discuss how we can help you protect your Tools.
Who needs to take out tools insurance?
If you rely on your Tools to earn an income, you should consider a Tools Insurance Policy. Following an insured loss, a tools insurance policy will assist you financially in replacing your tools and getting back to work.
What happens if your tools are stolen or damaged?
When your tools are stolen or damaged, Atlantic Insurance Client Managers can help you prepare and lodge your claim with the insurer. They can also negotiate a fast and fair settlement. Providing proof of purchase and ownership of the tools can be an aspect of a tool’s claim that could delay settlement. We can help you gather the paperwork and receipts required to expedite a speedy claim process.
Are there other insurance policies tradies should consider for their tools?
Atlantic Insurance suggests our tradespeople consider the following types of extensions to their tools insurance policy.
Stock and scaffolding: Whether you are a Plumber, Electrician, Landscaper, Painter or any other specialist in Trade, you will likely carry stock and scaffolding. Atlantic can negotiate the inclusion of cover for stock and scaffolding subject to some limitations to protect you. Extending a Tools Policy to cover “Stock & Scaffolding” will protect Trades that regularly carry these items.
Accidental Damage/Loss: An “Accidental Damage” cover or extension can provide additional coverage beyond a standard policy offering fire, theft, collision and other perils such as lightning, explosion, malicious damage or vandalism.
Theft in the open air: Most Tools Insurance Policies require “forced & violent entry” for coverage to be triggered, but most losses occur when Tools are left on a job site or the car is unlocked. A “Theft in Open Air” extension may allow you to claim for stolen tools without evidence of “forced & violent entry”.
Hired equipment: A “Hired In” extension can cover the equipment you hire occasionally, and you are responsible for loss or damage. Many Tradies have a requirement to hire specialist equipment to complete jobs from time to time. There is a misconception that hire companies will provide automatic coverage for loss, damage, or theft whilst on hire, and when cover is purchased from these hire companies, often the coverage is limited or excesses very large. You must understand this exposure. Our experienced Client Managers can discuss whether a “Hired In Extension” would suit the equipment you hire occasionally, and you may be responsible for loss or damage.
Contact Atlantic Insurance for Tradies Tools Insurance
Tools insurance is essential to cover the cost of damage, loss or theft following forcible and violent entry and loss of your tools. If your tools aren’t available, there can be a significant cost to replace them and a loss of income if they cannot be replaced quickly.
Stealing tools is becoming a popular theft choice because they are easy to steal. If you take out tools insurance, you will still be able to work on your projects and start new jobs with comprehensive insurance for your tools that will prepare you in the event of loss.
Having supplied insurance to those within the trades industry for 25 years, Atlantic Insurance understands the insurance requirements of tradies! Contact us on (03) 9059 1916 to discuss your needs.
Any information contained on this page of the website is general advice only and has been prepared without taking into account your objectives, financial situation or needs. Your should consider these, having regard to the appropriateness of this advice and the relevant Product Disclosure Statement (‘PDS’), Target Market Determination (‘TMD’) and Financial Services Guide (‘FSG’), which will be provided following any formal recommendation to you.
