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Tool insurance for small businesses
For most businesses, having tools or equipment is necessary for their operations. The plumber needs a wrench, the beautician needs a manicure table, and the landscape gardener needs shears.
If these tools are damaged or go missing, then this can prove costly for the business in terms of finances and reputation. Therefore, it’s important that you consider tool insurance to protect both your tools and your business. You can purchase tool insurance as part of a business insurance package, alongside public and products liability insurance.
Tools insurance provides cover for your equipment should the worst happen to it during your daily work activities. No matter how careful we try to be and how securely we store our tools, unforeseen incidents can still happen.
Perhaps a fire breaks out, or someone drops a fragile piece of equipment, or thieves bypass your locks and gain access to your premises. Having adequate tool cover can help protect your equipment in case of loss, theft, or damage.
While insurance for work tools may not be legally required, it’s worth considering this cover for any sole trader or a business owner. That said, how much tool insurance you need will largely depend on the type of work you do. We can advise you on a range of options. Contact the Aon team to work out the right level of tool cover to protect your business needs.
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Is it worth getting tool insurance?
If your business depends on equipment to survive financially, then it’s important to think about getting tools insurance. Keep in mind that tools can refer to equipment such as hammers and wrenches to hairdryers and laptops.
Tool cover can help to protect your equipment against loss, damage or theft. You should consider getting tools insurance as soon as you buy any tools or equipment you will use for your business activities.
There are a number of situations that could arise that tools insurance can help to provide cover for. Accidental damage or breakage is something to consider, particularly on construction sites. Also, tools theft is a concern in the UK and tools can also be vandalised, or simply lost. Having insurance for work tools will give you peace of mind knowing your livelihood is protected.
Do tools in vans need insurance?
When you consider tools insurance, you should think about the tools you use in your business activities. This can include tools that you take with you on the job or store in a vehicle, such as a van.
You’ll also need to ensure that your tools are securely locked away if they’re unattended. If you leave your tools in an unattended vehicle, you should ensure that the vehicle’s locked too.
What is covered in tools insurance?
Tools insurance can help to cover the cost of either replacing or repairing equipment that has been lost, stolen or damaged. Cover arranged by Aon includes items such as handheld and portable equipment up to and including electronics. How much cover you need will be based on the type of work your business is involved in and the type of tools you use.
Insurance for work tools can cover a range of possible situations such as overnight theft, dropped or smashed equipment, and even accidental misplacement while travelling. This can also apply to tools owned by employees that are in your custody. So long as the tools are used by your business operations, they can be covered against loss, damage or theft with tools insurance.
What’s not covered?
General wear and tear won’t be covered by your tools insurance. You are also expected to comply with certain security measures, such as ensuring that your tools are securely locked away if they’re unattended. If you leave your tools in an unattended vehicle, you should ensure that the vehicle’s locked too.
Can my tools be covered under home insurance?
Generally, your tools will not be covered under home insurance if you use them for work purposes. Tools used purely for hobbies or home renovations may be covered by home insurance, but you would need to check what is covered with your home insurance provider. If you use any of your tools for work purposes, then it’s worth considering tools insurance to cover them.
If you are working from home or operating a business from your home, then you should find out which tools are covered by tools insurance. Speak to your insurer or an Aon adviser if you are unsure what items of equipment can be covered. Make sure your equipment has cover in case of loss, damage or theft.