How much is tool insurance for trades?

If you rely on your work tools to get the job done, tool insurance is a smart way to protect your livelihood. For those considering taking out tools cover, how much tool insurance costs might be a question on your mind. 

Like with most insurance there isn’t a one-size-fits-all answer. The price of tool insurance can vary widely depending on several factors, from the type of cover you choose to the value of the tools you’re insuring. 

What we can do though is give you some pointers on what can affect a policy premium. 

By the end, you’ll have a better idea of where on the spectrum of “tool insurance costs” you might be – plus some tips on finding a policy that fits your needs. 

*Disclaimer – the following is a general guide to tools insurance. Please always check your policy wording, policy schedule and terms & conditions for more accurate information. 

What is tool insurance? 

Chances are if you’ve searched for ‘how much tool insurance costs’ you know what it is. But a quick recap: 

It helps cover the cost of repairing or replacing stolen or damaged tools like hand tools and power tools. It primarily offers financial protection for tradespeople, whether they keep essential equipment in the home or in a secure vehicle. 

We’ve got a whole guide to tools insurance if you’re curious to know more. 

How much is tool insurance cover? 

The big question – how much does tool insurance cost? As mentioned, an exact number can’t be given because of how variable premiums can be. 

But when it comes to what can affect the price, the first thing will be the insurer you go with. Each provider will offer different premiums with varying levels of cover and benefits. 

Going deeper, there are a few key factors that can affect what you might pay… 

Total value of tools 

As with any insurance that covers any sort of ‘property’, the value of the items insured can impact your premium. 

For example, you might find a policy that includes a claim limit of £2,000 for all your tools, as standard. If you need to insure equipment worth more than this, you can ask your insurer for a higher tools cover limit. But this would typically cost more. 

What it covers 

A key thing to pay attention to when searching for tool insurance is the type of cover it offers. Some insurance will simply just cover your gear in the event of theft or accidental damage. 

Other policies might also include tools in transit insurance, providing financial protection for tools that are stolen or damaged while being loaded, unloaded or transported in a work vehicle. You might also find tools insurance that provides extra cover for tools left in a secure van overnight. 

So, when comparing quotes and costs, consider any extra benefits that might warrant a higher price. 

Job type 

Each trade faces different risks day-to-day and these dangers could impact your tool insurance costs. 

You should assess your business and any potential liability you might face. This includes the type of work you do, the materials you work with, and the environments you work in. 

Payment basis 

One of the main differences with tools insurance policies is how a tool’s value is calculated when a claim is paid out. It’s normally either ‘market value’ or ‘new for old’. 

Market value 

Some tool cover providers will pay out for claims on a ‘market value’ basis. This means that the value you’ll be paid is based on the current worth of items considering their age and condition. 

New for old 

Other providers will offer cover on a ‘new for old’ basis. This means they’ll cover the cost to repair or replace tools based on the purchase price for new replacement items. 

This goes back to “what it covers” above. If the policy offers a higher payout on a new-for-old basis, you may find the premium is slightly higher than one that offers a lower payout – but it could be worth it. 

Policy type 

When shopping around for tools insurance, you’ll likely come across two main options – dedicated tools cover and cover included with a combined tradesman insurance policy. 

Dedicated tools insurance will be exactly that – stand-alone cover solely for the purpose of protecting your own tools in the event of theft, loss or damage. 

Combined trades insurance will include various policy types that tradesmen can benefit from all under one ‘roof’, like tools and equipment cover. This could be combined with public liability, employers’ liability, professional indemnity and plant equipment cover. 

Of course, a combined policy offers a wider range of coverage, so will make sense to have a higher premium – again, going back to effects of “what it covers”. 

Payment option 

Pretty common in the modern world, you may be offered payment options like monthly or annually – the option you go for can impact your premium. 

Many tool insurance providers will offer discounts if you pay your premium with a one-off payment vs paying for it monthly via direct debit. 

Is tool insurance worth it? 

Tool insurance cover could be invaluable for some people, but when talking about how much it costs, it’s natural to wonder if tool insurance is worth it for you, your trade and your business. 

The only person who can answer this question is you – you know your risks, liabilities and circumstances best. Which might not be very helpful to read if you’re looking for guidance, so a few things to think about if you’re not sure: 

• Consider the impact stolen tools would have – many recent cases highlight that the typical total value of tools stolen per case can range from a £1,000 to £3,000+. Would having the financial support of tools cover be worth it for your business? 

• Weigh up the benefits you’d get from tools insurance – even with all the precautions to keep tools safe, unexpected events can happen. Insurance can offer financial protection, peace of mind and help you recover/get back to work quicker. 

• Do you need dedicated tools insurance cover – there’s an assumption that home insurance can cover your tools if you take them inside. But have you checked your policy wording? Many home insurance policies won’t cover work tools or equipment, or might offer lower claim limits. Could you benefit from cover designed for your trade, tools and business? 

If you’re still sceptical, we’ve done a deep dive into “is tool insurance worth it”. 

It’s worth noting that if you’re considering tool insurance, you’ll need to be able to provide proof of purchase (receipts or invoices) to be eligible for a payout. 

Finding the right tool insurance policy 

The factors above that can determine how much your tools cover costs can also be useful when choosing an insurance policy. Thinking about how they apply to you can help you understand what coverage would be right for your trade. 

It goes without saying you should always properly read through policy documents to understand what you’ll be covered for and make sure it matches up with your needs. 

A few things to look out for: 

• Total value limit – Add up the total sum of all vital equipment and tools and check the policy limit covers this. 

• Single article limit – Check the single article limit is enough to protect the most valuable tool you want to protect (tool must be a type covered by your insurance). 

• Extra cover you need – Any extra cover you need like tools in transit or tools stored in a secure van overnight is included. 

• Types of tools covered – Does it cover the type of tools you use? 

• Exclusions – Consider circumstances you need coverage for and check they’re not excluded. 

Tools cover with Kingsbridge 

Our own comprehensive Trades Insurance includes Goods & Tools cover with Public Liability and Employers’ Liability so you don’t have to juggle multiple policies across different providers.  

Key cover 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. 

*Please note – Kingsbridge Goods & Tools cover is only available as an add-on with our Trades Insurance package policy. It is not available as stand-alone insurance.