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Home Tool Insurance What Does Tools & Equipment Insurance Cover & Why Do I Need It?

What Does Tools & Equipment Insurance Cover & Why Do I Need It?

As a tradesperson, your tools and equipment are the lifeblood of your business. Without them, you simply can’t do your job. That’s why having the right insurance coverage for your essential gear is crucial. In this comprehensive guide, we’ll dive into everything you need to know about tool insurance and equipment insurance, including what it covers, why it’s important, and how it can protect your business.

What is Tools and Equipment Insurance?

Tools insurance, also known as equipment insurance cover, is a type of business insurance designed to protect the tools and equipment that you use for your trade. Whether you’re a builder, electrician, plumber, or any other type of tradesperson, this insurance can provide coverage for your essential tools in case of damage, loss, or theft.

Why Do I Need Tool Insurance?

Your tools are essential to keep your business running smoothly. If they get damaged, lost, or stolen, it can be a major setback for your operations. That’s where tool insurance comes in. Having the right insurance coverage can help you quickly replace or repair your tools and equipment, minimising downtime and keeping your business on track.

Protects Your Investment

As a tradesperson, you’ve likely invested a significant amount of money in the essential tools of your trade. From power tools to specialised machinery, these items can be expensive to replace. Tool insurance helps protect your investment by providing coverage for the value of your tools and equipment.

Covers You on the Job Site

When you’re working on a job site, your tools and equipment are exposed to various risks. They could be damaged accidentally, stolen by opportunistic thieves, or even lost in transit. Tool insurance can provide coverage for these risks, giving you peace of mind while you work.

Keeps Your Business Running

If your essential tools or equipment are damaged or stolen, it can bring your business to a grinding halt. With tool insurance, you can quickly replace or repair your gear, minimising downtime and keeping your business running smoothly.

What Does Tools and Equipment Insurance Cover?

Exactly what your tools and equipment insurance will cover varies depending on your policy, but typically these policies provide coverage for:

Accidental Damage

If your tools or equipment are accidentally damaged on the job site or during transport, tool insurance can help cover the cost of repairs or replacement.

Theft

Unfortunately, tool theft is a common problem for tradespeople. If your tools are stolen, either from your vehicle, storage unit, or job site, tool insurance can help cover the cost of replacing them.

Loss

If you accidentally lose your tools or equipment, such as leaving them behind at a job site, tool insurance can help cover the cost of replacing them.

Types of Tools and Equipment Covered:

The specific types of tools and equipment covered by your insurance policy can vary, but typically it includes:

  • Hand tools
  • Power tools
  • Specialised machinery
  • Diagnostic equipment
  • Laptops and mobile devices used for work

It’s important to review your specific equipment insurance policy to understand exactly what’s covered.

Financial Strength

Insurance provided by a Standard & Poor's 'A+ Stable' rated insurer

How Much Tool Insurance Do I Need?

The amount of tool insurance you need depends on the value of your tools and equipment. As a general rule, you should insure your gear for its full replacement value. This ensures that if you need to make a claim, you’ll have enough coverage to fully replace your lost or damaged items.

When determining how much insurance you need, consider:

  • The total value of your tools and equipment
  • The cost to replace your most expensive items
  • Any specialty or high-value items that may require additional coverage

It’s a good idea to keep an updated inventory of your tools and equipment, including receipts or appraisals, to help determine the right amount of coverage for your needs.

How Much Does Tools and Equipment Insurance Cost?

The cost of tools and equipment coverage can vary depending on several factors, including:

  • The value of your tools and equipment
  • The type of tools and equipment you use
  • The level of coverage you choose
  • Your claims history
  • Your location and industry

On average, tool insurance policies can start at around £50 per year for basic coverage, but can range up to several hundred pounds per year for more comprehensive policies.

At Tradesman Saver, we offer tools and equipment insurance as an optional add-on to our public liability insurance policies. Our policies start from less than £54 per year and can provide the coverage you need to protect your essential gear.

Is Tool Insurance Worth It?

Absolutely! As a tradesperson, your tools and equipment are the backbone of your business. Without them, you simply can’t do your job. Investing in tool insurance is a smart way to protect your gear and keep your business running smoothly, even if the unexpected happens.

Consider the cost of replacing your tools and equipment out of pocket if they were lost, stolen, or damaged. For most tradespeople, it would be a significant financial burden. With tool insurance, you can have peace of mind knowing that you’re covered in case of an incident.

Other Types of Insurance to Consider

While tools and equipment insurance is important, it’s just one piece of the puzzle when it comes to protecting your business. Other types of insurance to consider include:

Public Liability Insurance

Public liability insurance can protect your business if you’re held responsible for injury or property damage to a third party. For example, if a client trips over your tools and gets injured, public liability insurance can help cover the cost of their medical expenses and any legal fees.

Employer’s Liability Insurance

If you have employees, employer’s liability insurance is a legal requirement in the UK. It can provide coverage if an employee is injured or becomes ill as a result of their work for your business.

Professional Indemnity Insurance

If you provide advice or services to clients, professional indemnity insurance can protect you if a client claims that your work caused them financial loss. This can be particularly important for trades that involve design work or consultancy.

Personal Accident Insurance

Personal accident insurance can provide financial support if you’re unable to work due to an injury or illness. This can help cover your living expenses and keep your business afloat while you recover.

At Tradesman Saver, we offer a range of insurance coverage specifically designed for tradespeople. Our policies can be tailored to your specific needs and can provide the comprehensive coverage you need to protect your business.

Protect The Tools of Your Trade with Tradesman Saver

Your tools and equipment are the heart of your business. Protect them with tools and equipment insurance from Tradesman Saver. Our policies are designed specifically for tradespeople and can provide the coverage you need to keep your business running smoothly.

With policies starting from less than £54* per year, protecting your essential gear has never been more affordable. Get a quote today and see how we can help safeguard your business.

Tradesman Talk

Have you ever had your tools lost, stolen, or damaged on the job? How did it impact your business? Share your experiences and any tips you have for protecting your gear in the comments below.

Until next time, make sure it’s Tradesman Saver!

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