As a tradie, you know no project goes well unless you have the necessary pieces in place. While the list of necessities for a job may be extensive and vary depending on the profession, tools are always a consistent item on the list. A tradie cannot work without their tools. There are no questions about it.
What is Tool Insurance?
Tool insurance is a specially designed policy to cover hand-held and transportable equipment. In addition to theft, this insurance cover will reimburse you for lost or damaged tools.
What Does a Tool Insurance Policy Cover?
An insurance policy for your tools will cover hand-held and transportable items. While power tools are often the first thing people think of about gear that needs insuring, smaller hand tools can be worth a great deal when sold in unison.
Insurance cover for tools will typically insure,
- Ladders and landscaping equipment
- Hand-held power tools such as hand saws, drills, or electric planers
- Standard tools like hammers, wrenches, and bolt cutters
- Hired tools and portable equipment
Items not Covered by Tool Insurance
While the cover you get with tool insurance can be fairly comprehensive, you should be aware that conditions and exclusions may apply, such as,
- Equipment and machinery that are not portable are typically excluded from tool insurance
- Tools that are damaged intentionally to collect insurance money are excluded from any insurance payout
- Insurers will not cover tools damaged because of improper use under a tool insurance policy
- Tools left unattended may not be covered. Find out the specifics of your policy by speaking with an insurance professional.
Why You Need Tool Insurance
- The Cost to Replace Your Tools – When you take a quick mental inventory of the tools you own, the list is quite long. All these essential items would be costly to replace, as prices have increased since you purchased some tools.
- The Expense of a Work Stoppage – Replacing your tools is considerable. However, not being able to work may be more costly. Not only will you fall behind on projects and become unable to start new jobs, but you may also find yourself in breach of contracts written before the loss.
- Frequency of Theft – While many people may not think about it, tools are a popular target for thieves. Most tools are relatively easy to steal and even easier to sell. Australian tradespeople lose hundreds of millions of dollars worth of tools because of theft.
- Accidents Happen All the Time – Buying insurance cover for your tools does more than guard against theft. It will also pay if there is damage to your tools, taking care of repairing or replacing tools as needed. Your tool insurance also covers replacing lost tools.
- Protect Your Employees and Apprentices’ Tools – A tool insurance policy covers more than your personal and business tools. The cover extends to tools your employees and apprentices bring to the shop or job site.
Reviewing Your Tool Insurance- Five Important Questions to Ask
When you are busy from dawn to well after dusk, it is easy to put off matters that are not pressing on you. However, not reviewing your tradies insurance can be a costly error. Consider asking these questions when you meet with your insurance expert.
- What is the value of a specific tool before it needs to be named individually? Often, you will discover that insurers want tools mentioned specifically in your policy after a certain dollar amount. (Frequently, the value is $2,500 or more) Failure to make a note of valuable tools could result in a refusal to pay on a claim.
- How often should I take stock of my tools and report changes to my insurance company? Typically, you can do this once a year when you renew your policy. However, if you make a significant investment in tools, it is in your best interest to notify your insurer right away.
- Are my tools covered when they are in transit via a commercial courier? Different policies have specific limitations and requirements. It is always in your best interest never to assume something is covered.
- If my tools are on an unprotected job site, are they still covered by my tool insurance policy? The answer can differ based on policy and insurer, but knowing this detail can be the difference between a total loss and a paid claim.
- What are the exclusions on my policy? Some exclusions on insurance policies are standard, such as damage caused by acts of war or terrorism. Other caveats may be less common. Determining specifics before signing on the dotted line is always worth your time.
Attending to the needs of your business while keeping an eye on your insurance can be challenging. However, All Trades Cover can work with you to take the pressure of proper insurance off your plate.
No matter the size of your company, our professionals can assist you in covering your insurance needs in a timely and cost-efficient manner. If you have questions or need more information, please reach out to us. Our friendly and knowledgeable staff are pleased to be at your service.
The material provided in this post is for informational use only. It should not take the place of one-on-one consultation with an insurance professional and is not legally binding insurance advice.