Tool insurance

Get loss and damage cover for your tools with tool insurance

Get tool cover
Two men and a dog - Business key scene

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.

Builders laughing next to a stone brick wall

What does tool insurance cover?

What's included?

  • Theft and/or loss
  • Tools kept in a van overnight (no matter where the van is kept)
  • Natural disasters like fire, flooding, or storms
  • Deliberate vandalism or burglary
  • Accidental damage – as long as it isn’t considered negligence

What isn’t?

  • Ordinary wear and tear to your tools isn’t included
  • You’re not covered if you or your staff cause deliberate damage
  • If there’s a fault with your tool, it should be covered by the warranty – not insurance

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 £10,000 – 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.

Tips to keep your tools safe

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

  1. Store them securely

    Keep tools inside overnight if possible

  2. Beware of storing them in your van

    If your tools are kept in your van, make sure it has an alarm and is securely parked

  3. Install security

    Security systems like CCTV can provide extra peace of mind

  4. Mark your tools with your details

    Invisible/UV ink can be a covert way to do this

  5. Register your tools’

    Register your tools’ serial numbers online with a database like Tool Trace

Other business insurance topics

All business topics