Is tool insurance worth it? – A guide for Tradespeople

We’ve said it before – work tools are the backbone of a tradesperson’s business. So why wouldn’t you get tools insurance for your equipment? Well, many tradesmen out there are questioning “is tool insurance worth it?”.  

Searching online, we’ve found plenty of tradies asking if they should have tools insurance and if it’s really worth insuring “small ticket items”.  

So we’re here to look at the cost of tool theft in the UK, the benefits of tools cover and help you decide if it’s worth it.  

Cost of UK tool theft  

To anyone who isn’t a tradesperson, a few power tools or hand tools being stolen or damaged might seem minimal. But when your business is reliant on your gear, it’s not about losing a stash of DIY tools from the garage!  

A quick Google search can show the reality of tool theft. There’s plenty of news stories covering real cases and the financial impact of losing essential equipment.  

April 2025 London car boot sale  

Earlier this year (April 2025), Essex Police reported £50,000 worth of tools were stolen. They were thankfully recovered, including around 1,000 suspected stolen tools following a search of a car boot sale in Rainham. 

Welsh plumber’s tools stolen from van  

In July 2025, plumber Robbie Hawkins had over £3,000 worth of tools taken from his van overnight, while parked near his home (as reported by ITV Wales). Thieves used a master key to unlock his van, taking his £2,000 press gun as well as other power tools, drills and angle grinders.  

“Brazen” thief caught on CCTV  

In 2024 one thief stole around £2,700 worth of tools from a Doncaster high street business and followed by £1,000 worth from a van 3 days later. Thankfully, the thief was caught 3 months later and has since been jailed for the offences.  

Unfortunately, this isn’t often the case. The BBC reported that Essex Police have said less than 1 in 300 work tool theft investigations resulted in a charge last year (2024).  

As covered before, this isn’t all bad news. The Theft of Tools of Trade Bill is making its way through parliament and Direct Line reported indications that there was an overall decrease in cases in 2024 compared to previous years.  

But it’s clear that it’s still crucial to be vigilant about your work gear.  

Tool insurance benefits  

Even if you take all the measures to keep all your tools safe, there’s still a risk the worst can happen – a tool insurance policy can be a good precaution. 

Listening to what tradespeople are saying online, it’s clear there’s a bit of confusion when it comes to tools insurance for trades – mainly “is it worth it?”.  

One Reddit user put it quite well when they said, “it’s worth it once you get your things stolen”.  

To address concerns we’ve put together key benefits of tools insurance.  

Financial protection

Many cases involve thousands of pounds worth of tools. That’s a big bill to foot for small businesses and contractors if their own tools are taken or damaged because of theft (or even fire).  

Tools insurance covers the cost to repair or replace tools that are damaged or stolen, so you don’t have to worry about how or when you can get back to work.  

Peace of mind  

Increasing news coverage on tool theft and more public discussions in the trades community may have everyone on edge, wondering “could it happen to me”. Tools insurance cover would give reassurance that in the unfortunate event you were a victim, you’d have the support to get back on your feet and your tools are protected.  

Quicker recovery  

We’ve touched on the big financial burden of having your tools stolen. £1,000, or even £3,000+ is a lot of money to scrounge together for most trades businesses and contractors. Having that financial support means you can recovery quicker and get back to work.  

Protect your income  

One of the biggest hidden impacts of tool theft is loss of revenue. – without your equipment you can’t complete projects. Now, we’ll make it clear that tools insurance won’t directly cover revenue. But, getting back to work quicker means a smaller likelihood you’ll have to cancel client projects, and you can keep running your business.  

Designed for tools of trade  

A common statement online is that if you take all your tools inside, they’re “covered on the home insurance”. This might be true, but we’d recommend double checking your home insurance policy as it will likely be minimal cover.  

Dedicated trades insurance policies with tools cover will often be more suitable, offering specific protection for circumstances that tradesmen face and the equipment they use.  

Insuring tools in your van  

Met Police Freedom of Information data shows that tools stolen from vehicles is around 6 times more common than from the home. So, if you’re often leaving tools in a vehicle or van overnight, tools insurance could be beneficial.  

Tools in transit insurance 

Some specialised tools insurance (like ours!) covers tools and materials in transit, protecting against damage resulting from a road traffic accident. 

Tool insurance myths  

As mentioned, we’ve been searching the web for what tradespeople are saying about tools insurance and we’ve grabbed some comments we think highlight the biggest confusions.  

“Best insurance you can get is taking them home and in your house with you”  

While they’re likely safer in your house or garage, a common assumption is home insurance covers tools. Not all home insurance does though, and if it does, the cover limit might not be enough for what your gear is really worth.  

Top tips:  

• Check your home insurance covers contents (if it’s just “buildings” insurance it probably won’t)  

• Check if coverage is only for personal equipment – many policies exclude business/work tools 

• Be careful – some providers offer lower claim limits for items stolen from garages or outbuildings (where many tradies leave tools!)  

“Insurers devalue your tools”  

There’s a generalisation of what payout you get with tool insurance and that insurers won’t pay what your tools are worth. But this really depends on the payment basis of your policy i.e. “new for old” or “market value”.  

It’s only true if your tool insurance policy’s payment basis is “market value”, meaning your claim payout will be based on the resell value of your tools considering condition and age.  

But (and it’s a BIG but), many insurers – like Kingsbridge – offer tools cover on a “new for old” basis, matching the purchase value so your tools aren’t devalued, and you can replace them with new equivalents.  

“Tool insurance is expensive for what it covers”  

This of course is subjective, but before considering how “expensive” it is, it’s worth thinking about the full picture of what it covers.  

At face value, comparing tool insurance costs vs tool prices might make it seem expensive. If you’ve only got £1,000 worth of tools but other factors put your premium at £2,000 per year, it seems like it’s not worth it. 

But if you think about it, losing your tools isn’t just about the cost to replace or repair them. It’s also the work you lose as a result, fixing any damage to vehicles or vans and the income you’re not generating.  

Contextual example:

To keep this simple, we’ll focus on day rates…  

You’ve had your tools stolen and are unable to work for 4 months (approximately 86 working days). A day rate of about £300 equals £25,800 in labour costs you can’t earn. On top of replacing maybe £2,000 worth of tools plus money already spent on materials you can’t use for jobs you’ve had to cancel, it adds up.  

So when wondering if tool insurance is worth it (or “too expensive”) consider all the benefits it has to offer.  

More about tools insurance cover 

Think tools insurance would be beneficial for your business/trade? Be sure to consider important factors and read through your insurer’s policy documents. You need to understand what you’re covered for and know you’re getting the right tool insurance policy for your trade. 

A few tips:  

• Check the total value limit  

• Check the types of tools and equipment insured 

• Understand key exclusions and conditions  

• Consider special circumstances you need to insure e.g. tools in vans, tools left overnight, tools in transit.  

We have a full guide to tools insurance that breaks it down and explains tools insurance policies.  

Protect tools and equipment with Kingsbridge 

Our own comprehensive Trades Insurance combines Public Liability, Good and Tools cover and Employers’ Liability as standard, so you don’t have to juggle multiple policies across different providers. 

Key highlights include:  

• Up to £2,500 Goods & Tools cover included as standard  

• Covers tools stolen overnight from a secured van  

• 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 getting a quote today through our online quote and buy.