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Tools insurance
Cover for the tools and equipment you earn with, on site, in the ute or in storage. Compare tools insurance on its own or with public liability in the same request.
- No phone number needed to request quotes
- Add public liability and your vehicle in the same request
What is tools insurance?
Tools insurance covers your portable tools and equipment against theft and accidental damage away from your business premises, including theft from a locked vehicle. Insurers often call it portable equipment or general property cover.
Allianz, for example, describes its general property section as protecting portable property such as stock or hand tools against accidental damage and theft. Public liability doesn’t cover your own gear, and a vehicle policy may include only a small amount for tools.
What it covers, and what it doesn’t
Conditions differ between insurers, so the PDS is the final word.
Usually covered
- Theft from a locked vehicle. Check whether the policy needs signs of forced entry.
- Accidental damage. A dropped laser level or a drill knocked off a scaffold.
- Tools on site and in transit. Within the areas the policy names.
- High-value items. Many policies let you list expensive items individually.
Usually not covered
- Wear and tear. Gradual deterioration and normal use.
- Mechanical or electrical breakdown. That’s machinery breakdown cover.
- Theft without the required security. For example from an unlocked vehicle, if the policy requires it to be locked.
- Your vehicle itself. That’s commercial vehicle insurance.
Where theft happens, and what to check
| If your tools are… | Check |
|---|---|
| In a locked ute or van | Whether forced entry is required, and any conditions for leaving tools in the vehicle overnight. |
| On a building site | Whether a lockable site box or secure compound is required. |
| In your garage at home | Whether your home contents policy excludes business tools. Don’t assume it covers them. |
| At your workshop | Theft from business premises is usually a separate theft or business pack section. |
| Hired or borrowed | Whether the policy covers equipment you don’t own. |
How much to insure for
When tools insurance isn’t the right cover
Tools insurance covers your own gear. These need other cover:
- Your work damages a client’s property.That’s public liability. Public liability
- The ute or van is damaged or stolen.That’s commercial vehicle insurance. Commercial vehicle
- Your workshop is broken into.Premises theft and contents sit in a business pack. Business insurance packs
How to compare tools insurance
Tools insurance questions
Does my car insurance cover my tools?
Usually only a small amount, if any. Allianz’s commercial motor policy, for example, covers up to $1,000 for tools stolen from a securely locked vehicle. Tools insurance covers the full value you insure for.
Does home contents insurance cover work tools?
Don’t assume it does. Home and contents policies may limit or exclude business property. Check your PDS.
Are tools covered if they’re stolen from my ute overnight?
It depends on the policy. Many require the vehicle to be locked and may require signs of forced entry. Check the conditions before you leave tools in the vehicle.
How much does tools insurance cost?
It depends on the value of your tools, where they’re kept, your trade and your claims history. Comparing quotes is the quickest way to see your price.
Do I need receipts to insure my tools?
Not always to buy cover, but records such as receipts, serial numbers and photos make a claim much easier.
Can an apprentice insure their tools?
Some insurers offer tools cover to apprentices and employees as well as to businesses. Tell us what you do and a broker will check which insurers can cover an apprentice’s tools.
Does tools insurance cover tools owned by my employees?
Usually only if the policy is extended to them. Standard cover is for tools the business owns; many insurers will add employees’ and apprentices’ tools used for your work when you declare them and their value. Theft from an unlocked vehicle, or from an open site overnight, is excluded under almost every wording, whoever owns the tools.
Keep reading
More cover to compare online
Sources
Tools insurance