Tools and portable equipment can commonly be insured under a General Property section of a Business Insurance policy or, depending on the insurer, under a standalone policy.

The cover available varies between insurers.

How tools can be insured #

Tools can often be insured in two ways.

Specified items

Higher-value tools or equipment can be individually listed with their insured value.

Unspecified items

Lower-value tools can sometimes be insured under a blanket limit without listing every item individually.

An individual item limit may apply.

Depending on the policy, cover may be available for events such as:

• Theft
• Fire
• Accidental damage
• Damage in transit
• Other insured loss or damage

The circumstances in which the tools are stored or used can affect cover.

Theft from vehicles and worksites #

Tool theft conditions vary considerably between insurers.

Policies may contain requirements relating to:

• Locked vehicles
• Locked toolboxes
• Secure storage
• Overnight storage
• Evidence of forced entry
• Tools left on worksites
• Unattended vehicles

Do not assume every theft is automatically covered.

Valuing and documenting your tools #

The basis of settlement depends on the policy.

Some policies use replacement value, while other conditions can apply.

Keeping an inventory of your tools can assist when arranging cover and making a claim.

Useful records can include:

• Receipts
• Photographs
• Serial numbers
• Make and model
• Purchase dates
• Current replacement cost

You can also read more about General Property Insurance.

Contact our team if you would like help arranging insurance for your tools and portable equipment.