What insurance contractors need?
We know it can be a minefield for contractors when it comes to purchasing the right contractor insurance to protect…
Most tradespeople spend a lot of time thinking about the next job, the next customer, or the next challenge on site. They either don’t think about getting tool insurance until it’s too late, or they think it’s too complicated to set up and decide to rely on theft prevention. But knowing how to insure your tools might show you how simple it can actually be.
As a tradie, you’ll know more than most that losing your tools is about more than just replacing them – it can have a ripple effect with delayed jobs, cancelled projects and unpaid wages. It’s your livelihood.
So the question to ask is: Is the saved effort now worth the extra stress of recovering financially from tool theft?
In this guide, we’ll talk through getting tool insurance, how it works, and offer a few tips for making a claim.
*Disclaimer: This is a general guide to tool insurance cover. You should always check your policy documents or contact your insurer for more accurate information.
How to get tool insurance cover
If you’ve decided it’s time to protect your tools, the good news is that getting insured can be a straightforward process. With a bit of preparation and time to compare quotes, you can find the right cover for your trade business and hopefully save yourself some time (and money!) in the future.
Step 1: Assess your risks
Before you start looking at policies, take a step back and think about what tools and equipment you might need to insure and what risks they’re exposed to every day.
Start by asking yourself:
- How much are your tools worth? – this will give you an idea of the value you need your tools insurance to cover. Creating an inventory will help with this.
- Do you store your tools in a vehicle overnight? – you’ll need to look for an insurer that can specifically cover tools stolen from a vehicle overnight (this is normally subject to security conditions being met).
- Could your tools be stolen or damaged during transit? – some insurers offer cover for tools in transit.
- Do you have any expensive tools in particular you need to insure? -you’ll want to make sure any policy you take out can cover anything you’re specifically looking to protect.
A self-employed decorator with a basic set of hand tools is likely to have different answers (and insurance requirements) to a contractor carrying thousands of pounds worth of power tools and equipment between sites.
Step 2: Research insurance
Once you have a clear picture of your tools and equipment, and the risks involved, you can start exploring your tool insurance options.
This is where you can shop around and gather information on possible insurance providers.
Make sure you understand exactly what they’re offering, paying close attention to what policies are included as standard and any cover that’s offered as optional add-ons. Also keep an eye out for any policy conditions or exclusions that might make the insurance unsuitable for your circumstances.
For example, some insurers might only insure tools left in your van if it’s securely locked, there are signs of forced entry and it’s only left overnight at your named home address.
Step 3: Compare quotes
Price is important, but it shouldn’t be the only factor when choosing tool insurance.
When comparing quotes, look at the overall value of the policy rather than simply opting for the cheapest option. Pay attention to things like cover limits, excess amounts and any restrictions that could affect a future claim.
You can learn more about looking beyond the price in our cheap trades insurance guide.
Taking a few extra minutes to compare the details can help you avoid unpleasant surprises if you ever need to make a claim.
Step 4: Buy a policy and check your documents
Once you’ve found a policy that suits your needs, the final step is to arrange cover and carefully review your documents.
It can be tempting to file the paperwork away and forget about it, but it’s important to check that all the information is accurate. Make sure the insured value of your tools is correct, review any security requirements and familiarise yourself with the policy’s exclusions and conditions.
Keep a copy of your tool insurance documents somewhere accessible and update your insurer if your circumstances change – like investing in new tools or changes to how you store them.
Get started insuring your tools today
How does tool insurance work?
Tool insurance can help cover the cost of repairing or replacing tools (like handheld tools or small power tools) if they’re stolen, damaged or vandalised. You’ll pay a monthly or annual premium, and in return, your insurer can provide cover up to the limits set out in your policy.
If you need to make a claim for stolen or damaged tools, you’ll usually need to provide evidence like receipts, photos, serial numbers or a crime reference number. Once approved, the insurer will settle the claim in line with their terms and conditions.
You can learn more in our tool insurance guide.
Processes may vary between providers so make sure you understand how each insurer’s cover works.
How much does tool insurance cost?
The cost of tool insurance will depend on several factors, like the value of your tools, your line of work, where your equipment is stored and your claims history. Generally, the more expensive your tools are to replace, the higher your premium is likely to be.
Insurers may also consider whether tools are stored in a secure location, left in a van overnight or regularly moved between sites. Because every tradesperson’s circumstances are different, it’s worth comparing quotes from multiple providers to find cover that offers the right balance of protection and value for money.
Getting the most from your tools insurance policy
Once your policy is in place, it’s worth taking a few simple steps to make sure you’re getting the full benefit from your cover:
- Keep your cover up to date by reviewing it regularly, especially after buying new tools or equipment
- Hold on to receipts and proof of purchase where possible, as these can help support a claim
- Take photos of your gear and keep a record of tool serial numbers to help with recovery if they’re stolen or lost
- Understand your cover limits so you know exactly what’s protected and up to what value
- Check the policy exclusions to avoid assumptions about what’s covered
- Follow any security requirements, particularly if you leave tools in a van overnight
- Save your policy documents somewhere easy to access so the information is on hand if you need it
- Review your cover at renewal to make sure it’s still right for your business and equipment
How to make a tool insurance claim
Making a tool insurance claim is one thing every tradesperson hopes they never have to do. But if your tools are stolen, damaged or vandalised, it’s important to act quickly. While the claims process can vary between insurers, the steps are usually fairly similar:
- Report the incident as soon as possible – contact the police if theft or vandalism is involved and request a crime reference number.
- Check your insurance cover – do your best to compare potential repair or replacement costs to your cover limit, and check for any exclusions or conditions that might apply.
- Confirm your responsibilities – to make a claim, there might be a few things you’ll be accountable for, like submitting your claim by a certain deadline or paying an excess.
- Notify your insurance provider – have important details to hand like your personal information, policy number, incident details, supporting evidence and your crime reference number (if applicable).
- Reach out for more guidance – if you’re unsure about anything relating to your cover or your claim, don’t hesitate to contact your insurer.
Tools insurance with Kingsbridge
Our own comprehensive Trades Insurance includes Goods & Tools cover with Public Liability insurance and Employers’ Liability so you don’t have to juggle multiple policies across different providers.
Key cover highlights can include:
- Up to £2,500 Goods & Tools cover included as standard
- Covers tools stolen overnight from a secured van (subject to policy conditions)
- Optional add-ons like Contract Works, Hired in Plant & Owned Plant, and Professional Indemnity
- Nil excess on most professions covered
- Real support from in-house dedicated experts
- No hidden fees
Have a question? You can contact us and speak to our in-house experts, or you can go straight to requesting a quote today through our online quote and buy.
*Please note – Kingsbridge Goods & Tools cover is only available with our Trades Insurance package policy. It’s not available as stand-alone insurance.
Tool insurance FAQs
What proof do I need for tool insurance?
When taking out tool insurance, you’ll usually need to provide an estimated of the value of your tools and equipment. If you need to make a claim, insurers may ask for evidence to confirm ownership and support your claim.
Useful documents can include:
- Receipts or invoices
- Photographs of your tools
- A log of serial numbers
- Warranty documents
- A tool inventory
If you’re insuring older tools you no longer have receipts, check with your insurer what the best alternative confirmation of ownership is.
What are the best ways to keep your tools safe?
While tool insurance can provide financial protection, prevention is always the first line of defence. Good security practices can reduce the risk of tool theft and may even help you meet your insurer’s security requirements.
Some tips to keep your tools safe include storing them out of sight when not in use, using high-quality locks and alarm and removing valuable gear from your van overnight where possible.
For more practical advice, read our tool theft prevention tips guide.
What does tool insurance cover?
Tool insurance typically insures handheld trade tools like saws, drills, sanders and grinders in cases of theft and accidental damage caused by events like fire and vandalism. Policies normally exclude day-to-day wear and tear and deliberate damage.
As cover varies between providers, it’s important to check your policy wording carefully to understand exactly what’s included and any exclusions that apply.
Can tools be insured in a van?
Some tool insurance policies can provide cover if you keep your tools stored in a van. However, insurers often apply specific security requirements, particularly for tools left in a vehicle overnight.
These conditions may include keeping the van locked, storing tools out of sight or using additional security measures. It’s also common for there to be signs of forced entry for a claim to be valid.
Because requirements vary between insurers, it’s important to check the policy details before assuming your tools are covered while in transit or overnight.
Do I need insurance as a self-employed tradesman?
There’s no legal requirement to have tool insurance if you’re self-employed. But, many tradespeople choose to take out cover to protect themselves against the financial impact of tool theft or damage.
If replacing your tools would be difficult or cause significant disruption to your work, insurance can provide valuable peace of mind. Tool cover can also form part of a wider tradesmen insurance policy, alongside protection like public liability insurance.
Can tool insurance cover plant equipment?
Tools insurance normally applies to smaller handheld tools like drills, saws and sanders. Plant machinery can instead be covered by own plant and hired in plant cover.
Many insurers offer these as add-ons alongside tools cover with their trades insurance – so you can insure your tools and equipment under one policy.
Learn more in our guide to plant machinery insurance.
