Keep your tools inside overnight if possible. If you need to leave them in a van, make sure it's alarmed and your tools are out of sight when you're away from it. Make sure plant equipment, such as rollers and dumpers are fully secured with anti-theft devices.
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Tool insurance
Get cover for your tools so accidental damage, loss or theft doesn't stop you from working
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What is tool insurance?
Tradesman tool insurance is there to cover the cost of replacing your essential work gear following theft, damage or loss.
With it in place you can quickly replace losses, so you can get back to work fast, because the insurer is picking up the tab.
This cover is frequently included as part of a builders' insurance package. But you can also buy it as a stand-alone policy if you’d prefer or if the level of cover included in the package is lacking.
Tools typically covered include:
Handheld tools (brushes, saws, pliers, hammers, wrenches)
Power tools (drills, grinders, nail guns, sanders, pressure washers)
Plant equipment (rollers, lawnmowers, diggers, dumper trucks)
Why is tool insurance important?
Tool insurance is crucial for protecting your business against the financial impact of tool theft, which is a growing concern for tradespeople. Recent studies show that tool theft occurs every 12 minutes, with a stolen tool – such as a lawnmower or pneumatic drill – potentially causing significant disruption to a small business.
While tool insurance can’t prevent theft, it helps minimise your losses, ensuring that your business can continue operating smoothly without facing expensive replacements. By safeguarding your tools with insurance, you can focus on your work, knowing you're protected against unforeseen circumstances.
Tools stolen in London in 2023[1]
44,514
What's covered by tool insurance
When you're covered
Theft from a secure location
Accidental damage
Loss
What's not covered
Injury to yourself or third parties
Wear and tear
Deliberate damage
How tool insurance works
As either a standalone policy or as part of a wider business insurance package, tool insurance works to protect your tools up to a pre-arranged limit.
You choose what level to set this at, so make sure you know the value of what you want covered. If it would cost you £3,000 to replace your essential work kit, you should take out at least £3,000 of cover.
Aside from the level of cover, you need to make sure you know where and when you're protected. For example, not all tool insurance covers tools left in a van overnight or while they're in transit.
How much does tool insurance cost?
| Factors | Scenario 1 | Scenario 2 | Scenario 3 |
|---|---|---|---|
| Number of Employees | 1 | 3 | 1 |
| Turnover | £100,000 | £250,000 | £100,000 |
| Cover Limit | £1,000 | £2,500 | £5,000 |
| Monthly Cost | £3.29 | £6.10 | £18.85 |
10% of tradespeople paid £3.01 a month or less for their standalone portable hand tools cover between April and June 2023.
These are real quotes given to Superscript customers for standalone tools insurance.
Each business presents its own set of risks and a unique profile, making insurance premiums highly variable. Use these figures as a guide only — you may receive quotes that are significantly higher or lower.
How to claim on tool insurance
Tell your insurer
They'll ask for details like the crime reference number (if applicable), the date of loss, type of claim and what's been taken. Supporting documents such as proof of loss or proof of purchase should be passed on if possible.
Your claim is assessed
For large claims you might need to add in more information along the way, but with smaller claims, the matter should be resolved fairly quickly.
You get a decision
Your insurer will let you know if your claim’s been successful, and when you’ll get a payout.
Tips to help keep your tools safer
Lock them up when not in use
Keep your tools inside overnight if possible. If you need to leave them in a van, make sure it's alarmed and your tools are out of sight when you're away from it. Make sure plant equipment, such as rollers and dumpers are fully secured with anti-theft devices.
Put security marks on your tools
Put your business address and phone number on your tools, or use indelible or invisible/UV ink. This increases the chance of you getting them back.
Register them
Register the serial numbers of your power tools with an online database like DataTag.
Add in extra security
Security systems like smart CCTV cameras can let you keep an eye on your premises and tools from your phone. Movement-activated security lighting can also prove an effective deterrent.
Tips to help keep your tools safer
Lock them up when not in use
Put security marks on your tools
Put your business address and phone number on your tools, or use indelible or invisible/UV ink. This increases the chance of you getting them back.
Register them
Register the serial numbers of your power tools with an online database like DataTag.
Add in extra security
Security systems like smart CCTV cameras can let you keep an eye on your premises and tools from your phone. Movement-activated security lighting can also prove an effective deterrent.
Learn more about our business insurance partner
We qualify, quantify and offer insurance using data, analysis and technology, and we serve a wide range of business types — from dog walkers and dieticians, to landlords and locksmiths. Enro Ltd t/a Superscript is authorised and regulated by the Financial Conduct Authority.
Why Superscript?
We make it quick and easy to find, buy and manage your business insurance.
Customisable cover for 1000s of business types
Superscript will help you find the different types of cover that are right for your business.
Adjust your cover as you grow
Amend your cover with no admin fees, to address your evolving needs as your business grows.
Simple claims process
Our customer portal allows you to enter the details we need to get your claim processed.
Tool insurance FAQs
Do I need to keep all my receipts?
While keeping receipts and tool serial numbers can expedite a claim process, insurers understand that this isn’t always feasible. In the event of a claim, other forms of proof of purchase, such as bank statements, credit card transactions, or trade account records, can also serve as valid evidence. Ensuring you have a clear record of your tools’ purchases can make the claims process smoother and faster, even if you don’t have physical receipts.
Are my tools covered in a van?
Coverage for tools stored in a van can vary depending on your insurance policy, so it's important to carefully review the terms and conditions before purchasing. Some policies may cover tools left in an unattended vehicle, while others may exclude this. If you're looking for coverage for overnight van storage, expect to pay slightly higher premiums. Additionally, the van must be securely locked to ensure that your tools are protected. Always confirm the specifics of your policy to ensure your tools are adequately covered when stored in a vehicle.
Are my tools covered by home insurance?
Whether your tools are covered by your home insurance depends on your specific policy and provider. Most standard home insurance policies do not cover tools used for commercial purposes. However, some insurers offer the option to add coverage for business tools as an additional benefit or endorsement. It's essential to check with your insurance provider to see if your tools are covered under your current policy or if you need to upgrade your coverage. Always clarify any exclusions or conditions related to tool coverage to ensure your equipment is fully protected.
What is tools in transit insurance?
Tools in transit insurance provides coverage for your tools while they are being transported in a vehicle or during loading and unloading. This type of insurance ensures that your tools are protected against loss, theft, or damage while they’re on the move, whether you're transporting them to a job site or between locations.
Additionally, specialist van tools insurance is available to offer enhanced protection, covering your tools during transit within the vehicle itself. This coverage can be crucial for tradespeople who rely on their tools to work and cannot afford the risk of costly damages or loss while in transit. Always check the specifics of your policy to ensure adequate coverage for your tools during transportation.
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References
1. Tool theft Direct Line FOI request to police forces
About Dan Moore
Dan Moore has been a financial and consumer rights journalist since the 1990s. He has won numerous awards for consumer and investigative reporting.