Information On Work Tools Insurance For Tradies

The monthly cost of tools insurance is roughly half of what you’d pay for a slab of beer, yet so many tradesmen take the risk, don’t have tools insurance and end up regretting it.

At some point in a tradesman’s life, he will have his work tools knocked off.  

Sometimes it’s one valuable piece of equipment, other times it’s an entire trailer load of work tools.  It’s frustrating and it’s expensive not just in terms of replacement, but without tools most tradesmen are unable to work.
 
Generally speaking tools insurance is undervalued by tradesmen until they realise the benefits and with monthly premiums starting from just $15.38 for $5,000 worth of tools insurance cover it’s crazy not to have it.

Over the years tradesmen accumulate tools and they often don’t keep tabs on the value of their tools.

It’s not until insurance companies start asking about the types of tools they have in their kit that they begin to realise just how much gear they’ve collected and the potential cost involved in replacement if their tools are stolen or damaged.  

Many tradesmen are surprised to know that the replacement cost for a tradesman’s tools can be $10,000 or more.  It’s a lot of money, and to spend that amount all at once is a very big ask.
 
To make the most of your tools insurance cover it is important to indicate on the tools insurance policy, any items which are valued at more than $2,000.

It doesn’t cost any more to specify the value of particular tools, but if they are not clearly outlined on the tools insurance policy, the insurer will only pay a maximum of $2,000 per item regardless of whether the replacement cost is much higher.  It is also good practice to keep a list of your tools on file which can be of enormous benefit if you need to claim.

There are a number of different types of tools insurance policies available, all have some conditions, but the most appropriate tools insurance cover for tradesmen is a policy that covers tools and stock (cabling, light switches, landscaping supplies etc) which may be held at home, onsite, in a vehicle and in transit.
 
The tools insurance policy should also specify replacement of the tools at replacement cost value, rather than on existing values.  Stock would be replaced at cost price.  

For tradesmen who transport and store their tools in a trailer, at Tradesure we strongly recommend insuring the trailer as well.  At $15.38 per month for a $5,000 trailer, why wouldn’t you?

Finally, no tools insurance policy covers every circumstance.  

For example, tools are not normally covered when they are left in the open or on site.  It is very important for tradesmen to understand what you are covered for, what is excluded and what excesses apply.  

Tools insurance excesses can be from $100 to $500 depending on the insurer.  When tradesmen have all the facts it’s easy to protect your tools in accordance with the tools insurance cover you have in place.

To find out more information about Tradesman insurance and in particular, to get a tradie’s tool insurance quote, please contact us or get a work tools insurance quote today.



Premiums may vary from state to state due to Govt. charges