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Power Tools Insurance: Keeping Your Equipment Safe and Sound

By Dean Laming on February 2nd, 2024

For professional contractors handling large-scale builds or infrastructure projects, high-performance power tools are indispensable assets that drive productivity and revenue. 

However specialist electrical equipment doesn’t come cheap, with professional-grade machinery easily running upwards of £3,000 apiece.

That substantial investment left vulnerable on bustling, chaotic projects where anything could happen to destroy unprotected equipment is a constant cause of stress. Planning for risks facing major assets with tool insurance allows tradespeople to focus on site operations rather than worrying over potential mishaps.

Why Power Tools Need Tool Insurance

Power tools represent major financial investments for contractors and their potential loss or damage can seriously disrupt operations. Standard employee insurance cover fails to provide adequate protections that reflect these unique considerations:

  • Intensive utilisation on jobsites means power tools sustain wear-and-tear over time requiring earlier replacement than basic hand tools.
  • Bulk and weight of heavy machinery amplifies accidental damage from drops or collisions on congested worksites.
  • High-powered electronics and components face risks from vibrations, debris and moisture that require weatherproof storage solutions.

Dedicated power tool insurance delivers tailored coverage and higher limits needed to fully protect these indispensable business assets in light of their specialised role and value. Policies can encompass needs from tool theft to replacement for damage, to public liability from operation. 

Top Threats Impacting Contractor Power Tools

To craft suitable protection, power tools insurers evaluate key risks facing equipment on worksites and storage facilities:

Tool Theft

With professional power tools running thousands apiece and highly portable, theft tempts everyone from opportunistic passers-by to organised gangs. A single missing item cuts immediately into contractor incomes waiting for costly replacements.

Accidental Damage

Even during careful use, power tools face everyday bumps or drops amplifying harm due to weight and moving parts – rendering them unusable. Momentary weariness or debris underfoot easily causes destruction.

Fire Damage

From small workshop blazes to full-scale infernos consuming warehouse storage, fire remains a leading site hazard with flames and smoke rapidly destroying sensitive electronics and components – easily putting £100,000+ worth of contractors’ tools at risk overnight.

Flood Destruction

With climate upheaval driving more frequent sudden extreme weather, flash flood risks continue rising across UK sites to become key considerations for planners. Yet power tools often get left out of broader environmental damage contingency planning – until disaster strikes unmanned equipment stores or containers.

What Does Power Tools Insurance Generally Cover?

Contractors access a spectrum of heavy equipment today unheard of just years ago. Comprehensive policies usually cover:

  • Petrol/diesel-powered tools – concrete saws, demolition hammers, earth compactors, generators
  • Pneumatic tools – jackhammers, drills, nail guns, torque wrenches
  • Electric tools – table saws, planers, sanders, welders, pressure washers
  • Battery-powered tools – drills, metal shears, chainsaws

Insurance Also Extends Beyond Just Tools

With auxiliary equipment enabling core machinery operation, policies also typically cover supplementary implements, including:

  • Tool storage chests, van racks and site containers securing assets
  • Chargers and transformers delivering tool power
  • Safety apparatus like protective gear and ventilation filters protecting health

Key Policy Terms Protecting Contractors’ Investments

When evaluating power tools coverage, look for advantageous policy terms like:

  • Worldwide protection for tools used on global projects
  • Public liability insurance for mishaps involving general public and heavy equipment
  • Replacement cost value without depreciation deducted from claims
  • Coverage for both owned equipment and leased/rented machinery
  • No exclusion for pre-existing wear as long as tools remain functional

Pitfalls to Avoid Regarding Power Tools Insurance

While coverage brings peace of mind, unreasonable expectations cause claim denials. Avoiding gaps means understanding boundaries like expecting only reasonable security precautions. For example, understanding that leaving tools fully unattended and unlocked is at your own risk and won’t be covered. 

In addition, gradual “wear and tear” damage accrues policy purview when tools become unusable.

Brisco Business Delivers Power Tools Insurance

Investing in tools insurance delivers reliable protection tailored to contractors’ heavy-duty machinery vulnerabilities, allowing companies to take on ambitious large-scale projects without concerns over equipment security. 

Brisco Business understands the livelihoods of tradespeople depend upon protecting specialised tools and equipment against workplace mishaps. That’s why we offer tool insurance policies tailored to protect contractors against asset loss from theft, damage and more.

Comprehensive policies beyond just tool insurance also cover public liability, professional liability, van insurance and more across key trade risks. Compare quotes for tool insurance along with many other types of contractors insurance today to find a policy that meets your needs.

Dean Laming

Dean is a Chartered Insurance Broker with more than 25 years insurance experience. Through various underwriting, operational and management roles, Dean has built up extensive knowledge of how to run a business and is now Managing Director of Brisco Business, part of the wider Henry Seymour Group.

All articles by Dean Laming

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