Are Your Phone, Tablet and Laptop Covered?

Tools in vehicles are a target for thieves. In November 2023, for example, thieves broke into a man's truck in Notting Hill, in Melbourne's south-east, and took his tools (ABC News).

Tools are what your business runs on, and losing them doesn't just cost money; it can stop you working until they're replaced. This is why tools insurance is worth serious thought.

Are phones, tablets and laptops covered?

They can be, depending on the policy. Work phones, tablets and laptops can often be added to a portable equipment or general property policy, sometimes with their own limit (the most the policy pays for them), and more expensive items may need to be listed one by one. Before you rely on it, check:

• Accidental damage: a cracked screen or a dropped laptop may only be covered if the policy includes accidental damage, which some insurers offer as an option.
• Theft conditions: many policies cover theft from a locked vehicle or building when there are signs of forced entry, and leave out devices left unattended in the open or in an unlocked vehicle.
• Wear, tear and breakdown: normal wear and tear is not usually covered, damage from neglect may be declined, and electrical or mechanical breakdown is often left out unless the policy includes it.
• Testing gear: multimeters, insulation resistance testers, infrared cameras and other testing devices can be expensive to replace. Tell the insurer what each one would cost to replace new.

What devices do tradies consider insuring?

Tool and equipment theft can be catastrophic, so it's important to understand the various categories of items you might want insured:

• Power tools: This is the bread and butter for most tradies. Power tool cover can include drills, saws (circular, table, mitre, and so on), grinders, sanders, nail guns, and other power tools that are costly to replace if stolen.
• Work tool insurance (which could cover broader tools, including personal tools): Don't forget the essentials! Hand tools like hammers, screwdrivers, spanners, levels, and measuring tapes add up in cost. Safety equipment (hard hats, glasses, harnesses), as well as generators or compressors, also fall into this category.
• Insurance for electronic devices: Modern tradies rely on communication and technology. Think about cover for your smartphones, laptops, tablets, GPS trackers, and more specialised tools like surveying devices and infrared cameras.
• Speciality equipment: If your trade uses expensive or unique tools and equipment, check your insurance policy covers these. This might include specialised machinery, surveying equipment, or custom-built items.

Read our tips to stop tool theft and protect your tools from theft and damage first-hand.

Types of device insurance coverage available

Choosing tools and devices insurance that fits your work matters. Here are some common types of cover to consider:

• Portable and Valuables Insurance: This type of policy is designed for items often used away from your premises, and it can cover loss, theft, or damage. If you have particularly expensive tools or equipment, you may need to list them individually on your policy.

Example: Your high-end surveying device used on job sites may suit this cover.

• Tool Insurance: Often available in a package alongside your public liability insurance, this provides cover designed for tools. It's particularly useful for tradies who rely on a wide range of tools.

Example: This could cover your collection of power tools and hand tools used daily, depending on the policy.

• Accidental Damage: This is an additional form of protection, covering mishaps like drops, spills, or other unforeseen accidents that could damage your tools and equipment.

Example: A cracked screen on your work tablet or a drill damaged by a fall may be covered, depending on the policy.

• Theft from a locked vehicle: As tradies are often on the move, this cover addresses a common risk: tools stolen from a secure vehicle.

Example: Your locked van is broken into and tools are stolen. This type of policy may cover the replacement costs.

Thinking about getting tools and equipment insurance for your business? Get a tool insurance quote.

What a policy covers depends on its wording, limits, excesses and exclusions, and the insurer decides whether a claim is paid, so read the PDS (product disclosure statement) or policy wording before you decide. Talk to a broker about cover for the equipment you use.

The claims process

Making an insurance claim for stolen or damaged tools can be stressful, but understanding the process beforehand helps. Here's what you need to know:

• Documentation is Key: The more evidence you have, the easier it is for the insurer to assess your claim. Keep receipts for your major tools, maintain an up-to-date tool inventory list, and take photos of any valuable equipment. These will be invaluable if you need to make a claim.
• Police Reports: For claims involving theft, a police report is usually essential. Report the theft as soon as it occurs, even for seemingly minor incidents, and keep the police event or report number, as your insurer will usually ask for it.
• Timelines: The steps, and how long you have to report a loss and send paperwork, vary between insurers and policies, so don't wait.
• Claim Excess: Most insurance policies have an excess, an amount you agree to pay out of pocket towards a claim before the insurer pays the rest. Make sure you understand how your excess works so you're not surprised in the event of a claim.

If you need to claim, call us as soon as something happens. We manage your claim with the insurer from start to finish. The insurer decides whether it's paid and how much.

What sets the premium?

The value of what you insure, your trade, your claims history and where you work, as the insurer assesses them. See how much tool insurance costs.

Tradies365's brokers can compare cover for your tools, vans, and essential equipment from insurers and help you choose. Get a quote today, or contact us to talk about cover for your tools.