Tools Insurance is usually arranged under a General Property Insurance policy, which can be either a section within a standard Business Insurance policy or, in some cases, a standalone policy offered by certain insurers. As a tradie, it protects your portable equipment and tools against theft, fire, accidental damage, and loss during transit, storage, or use.
Cover is generally available in two ways:
- Specified Items – High-value tools or equipment are individually listed on the policy with their insured value. This ensures the insurer knows exactly what you own and the value it should be replaced for.
- Unspecified Items – Lower-value tools are covered under a blanket limit, for example, up to $2,500 per item, without having to list each tool separately.
When deciding whether each tool needs to be individually insured, consider its value and how critical it is to your work. High-value or specialised equipment is usually better specified to ensure it is fully covered.
Many policies insure tools on a replacement value basis, which means you need to know what your tools are worth new, not at a depreciated cost. This ensures you have enough cover to replace them like-for-like if they are stolen or damaged. Keeping an up-to-date inventory, including photos, receipts, and serial numbers, can make claims faster and easier to process.
It is also important to understand the security requirements of your policy. Most insurers require evidence of forcible and violent entry or visible damage for a theft claim to be accepted. For example, tools stolen from an unlocked vehicle or an open site may not be covered.
We can help you review your limits, security requirements, and itemisation to make sure your tools cover matches the way you work. Contact us to get started.
