Insuring your tools

Why you should consider getting insurance cover for your tools.

power tools

Whether you’re a builder, carpenter, joiner, electrician or plumber, your tools are essential to your business, and without them, you can’t work, which could have a knock-on effect with your clients and your reputation.

That’s why it’s important to have the right kind of insurance in place to protect your tools and keep your business running smoothly.

We reported previously that tool theft across the UK continues to be a headache and a burden to tradespeople with £57,000 worth of tools stolen on a daily basis according to 2020 data from Metropolitan Police, averaging 32 thefts a day.

What is tool insurance?

Tool insurance can cover the cost of replacing your tools if they’re stolen, lost or damaged through fire or flood. Policies can cover a range of hand-held, power or non-power tools, plant equipment, owned, leased or hire-purchased tools.

Specialist tools can be expensive. And if you have to wait until you can afford to replace them, you may end up losing valuable customers.

Did you know? Hand-held power tools are the most commonly stolen tools*

Tool insurance means you can replace your tools and carry on working with minimal disruption to your business and customers. Tool insurance can sometimes be bought as part of a business insurance package.

What you need to know and check?

  • As mentioned in the point before, you may already have cover as part of your business insurance, so it’s worth checking with your existing insurer first.  
  • If you use a van for work, make sure your tools are covered as part of your van insurance cover as it may be included in that.
  • If you don’t have cover in place, you can det tools insurance. It’s worth speaking to an insurance broker to ensure that you’re getting the right cover.
  • Make sure you check your excess on the policy. There’s no point having cover if your voluntary excess is higher than the replacement cost of the lost or stolen tools.  That said, it’s likely that you’ll have an extensive range of tools, so the excess in comparison to having to replace these yourself would be favourable.

Where can I get tool insurance from?

As an insurance broker, we’d always recommend getting specialist cover so you can ensure that it meets your specific needs. And we’d recommend getting impartial advice (i.e. from a broker like ourselves) as your insurance advisor can help find the right policy for you.

Top tips for keeping your tools safe

Check out our previous article on how to keep your tools safe

*across the London between January 2019 and April 2021 according to The Construction Index.