Business Insurance: Does your business need a tool insurance?

In almost every business, tools are needed to turn ideas into reality. Just as a plumber needs his benders, wrenches and snakes, a photographer needs his cameras, lenses and flashes. If this equipment gets lost, stolen or damaged, the professional is out of business, for at least as long as it takes him or her to get new tools. This is when tool insurance comes into play, as it refunds all tool replacements after an unfortunate event. What can exactly be covered? How much is it? What do you need to know before you start looking for the best tool insurance for your needs? Our guide is there to help.

What is tool insurance?

Tool insurance basically insures a company in case tools used by the workers are stolen, lost or damaged. More tools are covered than one might think.

Tool insurance

This kind of insurance typically covers policyholders when the so-called “tools of the trade” are lost, stolen or damaged following an unfortunate event. As these tools can be very expensive, the insurance company will intervene very quickly to cover the cost of replacement tools, so that the business can keep going as normal without interruption and financial losses. In this respect, this kind of insurance is very similar to business equipment insurance. But one key feature is that the tools will be covered wherever they are left unattended, for example when they are left in the premises of a client during long interventions.

Examples of tools covered

When we talk about tools, the first image which comes to man is that of the craftsman doing his own sole-trading job, like a plumber, carpenter, electrician, etc. While it is true that these professionals need this kind of insurance, other very different trades can be concerned:

- a barber can have his scissors, clippers and trimmers, barber chairs, dryers covered;

- a photographer can have his lenses, flashes, tripods covered;

- a consultant can have his PC covered…

Also, special products like van tool insurance can cover your tools in case they are stolen or damages while stored in the company vans. But policyholders should make sure the van itself is insured in case of theft.

How much does it cost?

Tool insurance prices

Tool insurance prices depend on how many tools the business needs to insure, the value of these tools,and the risk factor. That being said, it is not uncommon to find insurance policies sold for around £20 per month.

Evaluating the coverage you need

In order to get the best price for this kind of insurance, it’s essential to properly evaluate the coverage you need. Depending on the insurance provider, up to £10,000 of tools can be insured, sometimes on increments of £500. So business owners should make a clear list of all the tools they use, how much they are and how old they are, in order to calculate the coverage that they might need.