If you’re a tradesman and run your own business, you already know that your tools are your bread and butter, so it’s important to keep them safe at all times. Your tools and equipment need insurance cover in the event of accidental damage or theft because you can’t risk being unable to complete a job on time, and to a high quality, if something happens to them.
Many tradesmen assume that tool insurance is similar to car insurance, which means that it covers pretty much any kind of event and that all policies offer the same type of coverage. The truth is that these assumptions are wrong because not all tool insurance policies are the same and not all kinds of events that result in theft or damage of your trade tools are covered.
What does tool insurance cover?
The type of policy you take out determines the coverage you get for your tools. When you set up your policy, it is important that you cover the full value of your tools. If you don’t do that, you will be under-insured, and this could significantly reduce the amount you receive as a settlement in the event of a claim. For example, if your tools are worth £2,000 and you only insure for £1,000 (50% of their true value), then you can expect to only get 50% of your claim paid. So a claim for £1,000 would only be settled at £500 as you had under-insured your tools and only paid half the premium you should have done. Not many people are aware of this and knowingly under-insure their tools, expecting that they will still get paid out the amount they insured for.
It’s also essential to note that not all tool insurance policies offer new for old cover. Most policies available on the market include a condition that states that the age, condition, and the way the tool is used are all factors that are taken into account when paying out on a claim. Our Tradesman Saver tools and equipment insurance policy provides this type of cover.
You should also remember that if you don’t have a new for old policy, the amount of money you receive for your tools when you make a claim will not necessarily be exactly what you paid for them when you purchase them as new.
What kind of security do I need to worry about when it comes to covering my tools & equipment?
Before making a payment as a result of your claim, insurance companies will want to ask you some questions about the safety of your tools. Some of these may include details such as vehicle alarm specifications if you leave your tools overnight in a van, or details about the construction of the building you were keeping your tools in. Keep in mind that, in some cases, insurance companies require you to keep your vehicle in a locked compound overnight if you intend to store your tools in it. Our Tradesman Saver tools insurance provides cover for tools left in an unattended vehicle but you will pay a slightly higher excess if they are stolen.
What is not covered by tool insurance?
Insurance does not cover some events no matter how basic or comprehensive the policy you choose is. Some of these include any form of intentional damage or any damage that was caused by you or someone who works for you misusing the tool or equipment. You will also not get cover for any unlawful use of tools.
Finally, before making a claim with your insurance company for your tools, be sure that you are aware of the excess that you need to pay simply for just lodging the claim. In most cases, excesses range from £100 to £500, but in some cases, you may need to pay a percentage of the value you’ve insured your tools for.
At Tradesman Saver, our tool insurance is an optional extension of our public liability insurance policy , you are NOT able to insure your tools in isolation.