Tool Insurance

Tradesman tool insurance is applicable to plumbers, carpenters, builders, gardeners, electricians, and any other tradesman that regularly relies heavily upon the use of:

• Handheld tools
• Power tools
• Plant equipment

This specialist form of insurance covers tools that are owned by the sole trader or business, loaned for temporary use, leased, or hired with the intent to purchase.

What does it cover?

There is no set standard for what tradesman tool insurance should cover, and each policy will vary. Typically, most forms of business tools are included if they have a replacement value of between £1000 – £10,000. Some policies may also include:

• Overnight cover
• Tool cover in the home
• Tool cover in a work van
• Eu cover if working abroad
• Tools in transit
• Insurance for additional equipment such as phones or computers

It’s important to check policies to confirm what is covered by each insurer.

Do I need it?

It is not a legal requirement to have a tradesman tool insurance policy in place, although it is essential that sole traders and businesses have confidence that, should the worst happen, they have the financial means to replace any lost business equipment.

Some types of business insurance, home insurance, and van insurance may extend to cover the loss or damage of tools, so always check before purchasing a tools policy.

If you do not already have tools coverage in place, ask yourself if you could afford to replace your tools all at once, or if you could continue to carry out work without them.

How does the process of securing tradesman tool insurance works?

1. Valuation: Calculate how much it would cost you to replace your tools
2. Research: Use Trustpilot to find providers and visit websites to compare quotes
3. Decide on an insurer that offers a policy that meets your needs
4. Customise: Tailor your policy for the level of coverage you need
5. Relax: Your tools are in safe hands

Do I require it?

That’s something only you can decide. However, consider that, in 2020, around £57,000 worth of tools were stolen in 32 separate incidents every day in the UK. Specialist business tools that are needed for home repairs, maintenance, and renovations can be costly, and tradesmen can experience a significant loss of earnings without these tools.

Tradesman tool insurance facilitates business continuity during challenging times.

How much does it cost?

The cost of tradesman tool insurance can vary significantly, not only between providers but based on the valuation of your tools, the level of coverage that’s required, the type of business, and the tools and equipment that the business uses. The best way to find the cost of a tool insurance policy is to gather and compare quotes from providers.