How do I insure my work tools?

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If you work in a trade, your tools are your lifeblood. Without them, you probably can’t work. So, as you sort out your compliance and insurance, you may be wondering how you insure your work tools.

What is tools insurance?

Tools insurance protects you in the event your work tools are lost, damaged or stolen.

Your insurance will cover the cost of replacing or repairing your tools up to the level of cover you have. It can cover a whole range of tools: from handheld saws to power tools.

Am I legally required to have tools insurance?

You are not legally required to have insurance for your tools. However, it is an essential part of your business set up. If you can’t complete a project because your tools have been stolen, you may find yourself in breach of contract. This can have legal and financial consequences.

Why do I need tools insurance?

However careful you are, things can go wrong. For example, your tools could be stolen from your van or from a work site. Accidents and natural disasters, like floods, can also render your tools useless.

If you can’t work because your tools have been damaged, lost, or stolen you may not be able to complete a project or bid on new work. This may also mean you can’t earn the money to replace your tools and could ultimately put your business at risk.

Your tools may also cost more to replace than you realise, especially if you have built up a collection over several years.

Having insurance for your tools brings peace of mind. You can be certain that, whatever happens, you’ll be able to replace your tools quickly and get back to work.

What kinds of businesses need tools insurance?

Any trade or business that relies on its tools can arrange insurance to protect them including:

builders
carpenters
joiners
electricians
plumbers
bricklayers

If your tools are an essential part of your trade, you should make sure they are properly insured.

Is tools insurance the only insurance I need?

There will be other types of insurance you may need. These include:

public liability insurance
employers’ liability insurance
professional indemnity insurance

You can normally get a package of insurance polies to cover your business needs. If you’re not sure what you need, speak to an insurance company that specialises in the construction industry.

How much cover do I need and how much will it cost?

How much cover you need will depend on the value of the tools you want to insure. However, it can cost less than you think. You can get an indicative quote in just a few minutes by applying online.