Tool insurance

What is tool insurance?

Tool insurance covers the cost of replacing your tools if they’re lost or damaged, for example due to fire, flooding or theft. 

Tools that are usually included are: 

• Handheld tools (hammers, screwdrivers, saws, pliers)
• Power tools (drills, sanders, angle grinders, nail guns)
• Plant equipment (excavators, rollers, diggers, dump trucks)
• Owned, loaned, leased or hire-purchased tools

Tool cover can be bought as a part of your business insurance, like public liability insurance or any other sort of add-on. It could be useful for van drivers that carry equipment, mechanics or tradespeople.

What does tool insurance cover?

What’s covered by tool insurance varies, but it’s usually:

• Tools and equipment from £1,000 to £10,000 or more, depending on your needs
• Overnight cover so you know your tools are protected 24/7
• EU cover if your business does work abroad
• Cover for tools and equipment at home and at work
• Tools in transit cover will protect your tools while on the road

What is tools in transit insurance?

Tools in transit insurance will cover your tools and equipment while it’s being driven around, loaded and unloaded. 

You’re also usually covered if your tools are kept in the vehicle overnight, as long as it’s alarmed and parked securely. For example, in a locked garage, compound or on your driveway.

How does tool insurance work

You can insure up to a certain value – usually up to £10,00 – of tools and equipment. The level of cover you need depends on your business and what tools and equipment it uses. 

If your tools are damaged, lost or stolen, you’ll be able to claim on your tool insurance policy to help cover the costs of repairing or replacing them.

What else to consider when buying tool insurance?

Excess and possible exclusions

An excess is an amount you pay when you make a claim. When looking for a tool insurance policy, check that the excess isn't too high.

If you have to pay an excess of, say, £300 to make a claim if that’s more than the value of your tools then there’ll be no point in having the policy.

The value of your tools 

Don’t underestimate how much your tools are worth when you’re taking out a policy. 

If your tool insurance will only cover a value of up to £1,000 and your tools are worth more, you’d be out of pocket if you needed to claim. 

Working from home

If you work from home or you keep your tools there most of the time, for example if you’re a carpenter with a workshop at home, you might be able to get cover for your tools through your home contents policy. 

Make sure you check the value of tools your home insurance will cover to make sure it’s enough. 

Your work van

If you have a van for work, you might find you have tool cover through your van insurance policy, so it’s worth checking first. 

Tips to keep your tools safe

Here are a few top tips to help you keep your tools and equipment safe:

• Keep tools inside overnight if possible
• If your tools are kept in your van, make sure it has an alarm and is securely parked
• Security systems like CCTV can provide extra peace of mind
• Mark your tools with your details (invisible/UV ink can be a covert way to do this)
• Register your tools’ serial numbers online with a database like Tool Trace