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Author

Joe Phelan

Editor

Lucinda O'Brien

Last updated

January 23rd, 2025

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 vital for protecting your business from the financial strain caused by tool theft or damage. With tool theft happening every 12 minutes on average, tradespeople face a growing risk of losing essential equipment like lawnmowers, drills, or power tools.

A stolen tool can bring your business to a standstill, leading to costly replacements and potentially lost income. While tool insurance can't prevent theft, it offers crucial protection by covering the cost of replacing stolen or damaged tools.

This means your business can continue to operate without significant disruption, allowing you to focus on your work.

Tools stolen in London in 2023^[1]

44,514

“With tool theft on the rise, having the right insurance ensures stolen tools are replaced swiftly, minimising downtime and keeping your business running smoothly.”

Joe Phelan

Small business expert

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

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.

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.

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

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

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.

Do I need tool insurance if I rent my tools?

Even if you rent your tools, tool insurance can still be beneficial. While the rental company may provide coverage for the tools, this might only cover specific risks, such as damage or loss while the tool is in your possession. Rental agreements don't always cover theft or damage that occurs outside of the rental period, or while the tools are in transit.

Having your own tool insurance will ensure you're fully protected against unforeseen events like theft, accidental damage, or loss, no matter who owns the equipment. It can also provide peace of mind if you're working on a long-term project or using valuable rented tools. Always check the terms of your rental agreement and consider adding tool insurance to cover any gaps in coverage.