How Much Is Tool Insurance? Costs and Cover

Tradie tool insurance is an often overlooked but important part of a tradesperson's toolkit. It can help with the financial burden of tool theft, damage, or loss.

Replacing a full kit of tools can cost thousands of dollars, and tool insurance can pay to repair or replace them, up to the limits in your policy.

This blog will explore the specifics of tool insurance in Australia, including what affects the cost, the types of cover available, what it usually doesn't cover, and how to choose a policy.

How much is tool insurance?

There is no set price for tool insurance. The premium depends on your situation and on the insurer's assessment, including:

The value of your tools: a larger and more expensive toolkit costs more to insure than a smaller, basic set.
Where you work and store them: areas with higher crime rates may have slightly higher premiums.
The type of cover: basic theft and damage cover generally costs less than broader cover that includes accidental damage.
The excess you choose: a higher excess usually means a lower premium.
Your claims history and your trade: past claims and higher-risk work can be reflected in the premium.

Get a quote to find out what cover for your tools would cost.

What is covered by tradie tool insurance?

Tradie tool insurance can protect tradespeople from financial loss due to damage or theft of their essential tools and equipment. Let's look into it:

List of items typically covered

Hand Tools: Screwdrivers, hammers, spanners, pliers, and more.
Power Tools: Drills, saws, grinders, and other motorised tools.
Ladders and Scaffolding: Extension ladders, step ladders, and scaffolding equipment.
Safety Gear: Helmets, gloves, safety glasses, and protective clothing.
Measuring Equipment: Levels, tape measures, laser measurers, and more.

Check with your insurer or broker about tools that are not listed here. Tool theft insurance can cover a lot more, depending on the policy.

Events tool cover can include

Theft: tools stolen from a locked vehicle, site box or building, usually only where there are signs of forced entry.
Accidental damage: damage from drops or impacts, if the policy includes accidental damage.
Fire: tools destroyed or damaged by fire.
Water damage: tools damaged by water leaks and, under some policies, floods.

What is covered depends on the policy wording, its limits and the excess, and the insurer decides each claim.

Additional cover options

Public liability insurance: can cover claims for property damage or bodily injury to third parties.
Personal accident and illness cover: can pay a weekly benefit if an injury or illness stops you working, depending on the policy.
Vehicle insurance: can cover the vehicles you use for work, depending on the policy. Tools in the vehicle usually need their own cover.

Get a tool insurance quote.

What is not covered by tradie tool insurance?

While tradie tool insurance can cover a variety of scenarios, there are certain exclusions and specific situations where the insurance may not apply.

Common exclusions

Normal Wear and Tear: Tool insurance typically does not cover everyday wear and tear. This means that if your tools naturally degrade over time due to regular use, you will not be able to claim their replacement or repair.
Intentional Damage: Damage you cause on purpose is not covered. Whether vandalism or malicious damage by someone else is covered depends on the policy, so check the wording.
Negligence: If your tools are damaged due to negligence, such as leaving them exposed to the elements without proper protection, the insurance may not cover the costs. Take reasonable care of your tools, or a claim may be reduced or refused.

Specific situations where coverage may not apply

Tools Left Unattended: If you leave your tools unattended in a public place or in an unlocked vehicle and they are stolen, the insurance may not cover the loss. Always store your tools securely to prevent theft.
Pre-Existing Damage: Damage that existed before you took out the insurance policy is not usually covered. It's essential to disclose any pre-existing damage when applying for cover to avoid disputes later.
Tools Used for Illegal Activities: If your tools are used for any illegal activities, the insurance will not cover any resulting damage or loss. Sticking to legal practices is important for keeping your insurance cover.

Importance of reading policy terms and conditions

Understanding the terms and conditions of your tradie tool insurance policy is essential. Each insurer may have slightly different exclusions and conditions, so it's important to read the policy document carefully.

How to choose a tool insurance policy

Choosing insurance for your tools carefully helps you avoid being underinsured if something unforeseen happens. Here are some key factors to consider and tips to help you make an informed decision:

Factors to consider when selecting a policy

Coverage Limits: Check that the policy covers the full value of your tools. Consider the worst-case scenario and whether the limit will be enough to replace all your tools.
Premium Costs: Compare what each policy costs against what it covers. Keep in mind that a higher premium may offer broader cover.
Excess Amounts: The excess is the amount you pay when making a claim. A higher excess can lower your premium, but it also means you'll need to pay more out-of-pocket if you need to claim.

Tips for comparing cover

Compare Policies: Research and compare policies from different insurers. Look at what each policy covers, the limits, and the terms and conditions.
Read Reviews: Check online reviews and ratings to see what other tradespeople have to say about their experiences with different insurers.
Consult with Insurance Brokers: A broker can provide valuable insights and help you compare policies and choose. They can also explain complex terms and conditions.

In summary, tradie tool insurance in Australia is an important protection for tradespeople. It can cover a wide range of tools and equipment, including hand tools, power tools, ladders, and safety gear, against theft, accidental damage, fire, and water damage, depending on the policy. Tool cover is also often available alongside public liability and personal accident cover in a trade package.

List your tools and what they would cost to replace, then get a quote.

Contact us to talk about cover for your tools.

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General advice only. Read the policy documents we send with your quote before you decide.