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Work Tool Insurance: Why It’s Vital for Your Trade Business

By Dean Laming on February 2nd, 2024

As experienced tradespeople recognise, specialist instruments like inspection cameras, voltage sensor pens, programmable crimping pliers and more represent major investments in earning potential.

However, worksites bring constant risks between high-traffic collisions, bad weather and occasional crime leaving expensive gear vulnerable. A proper work tool insurance policy mitigates key threats to help keep trade businesses thriving.

Why Work Tools Need Insurance

Standard personal policies lack suitable provisions for working equipment facing real site environments daily, including:

  • Insufficient coverage limits unable to replace commercial-grade implements
  • Failure covering theft risks leaving tools briefly unattended
  • Exclusions around tools worn and damaged through professional use
  • No provisions for major equipment damage disabling income

By contrast, contractor tool insurance delivers purpose-built protection supporting trades at affordable premiums.

Key Perils Impacting Unprotected Work Tools

In evaluating work tool insurance plans, underwriters weigh core dangers to portable professional gear used off business premises:

Theft of tools left briefly unattended

Opportunists capitalise whenever tools get left unsupervised for a tea break, phone call or loading up. Unsecured, expensive equipment can disappear instantly.

Damage due to accidental drops

Handling gear all day inevitably leads to a slip-up over time – whether from unexpected slick surfaces or fatigue.

Impacts from passing vehicles and equipment

Congested worksites, unknown studio layouts or private homes all leave commercial instruments vulnerable to being struck and destroyed by other activity.

Fire damage on premises

On large-scale projects or workshop/warehouse storage sites, electronics and specialised instruments can sustain irreparable harm from heat, smoke and water.

Work Tool Insurance Coverage Overview

Policies adapt to diverse range of equipment in use, but commonly cover:

  • Diagnostic – Voltage testers, imaging cameras, fibre optic scopes
  • Hand tools – Pliers, clamps, cutters, drivers, pulling lines
  • Power tools – Nail guns, tile cutters, joiners, jackhammers
  • Safe work provisions – Protective gear like respirators, cooling suits

What Exactly Gets Covered?

Beyond obvious tools used, expanded policies also protect site mobility aids like hydraulic trolleys moving heavy caches and backup equipment like portable generators. 

Savvy Insurance Provisions Guarding Trade Investments

Comprehensive policies enable operations with advantageous terms like:

Extended absence coverage securing unattended tools overnight 

Some policies include protection for equipment left on client sites or in locked storage over multiple days when transporting tools back and forth proves impractical. This prevents paying for secure offsite storage just to maintain coverage.

Protection scope encompassing owned and leased/rented equipment

Contractors who supplement their own inventory by temporarily hiring specialty tools for niche jobs get coverage extended to these rented assets alongside owned equipment. This provides flexibility, accommodating project needs.

Public liability shielding third-party injury risks from equipment

Policies cover bodily injury or property damage liability if a client or public visitor suffers harm relating to the operation or handling of insured work tools. This prevents paying claims out-of-pocket.

Avoiding Pitfalls – Work Tool Insurance Fine Print

Whilst insurance defends from common risks, unrealistic expectations cause problems, for instance:

  • Wear and tear over years not typically included – eventual failure of faulty tools themselves falls outside policies. However, injuries or damage arising from worn tools often qualify.
  • Gross negligence exclusions leave equipment fully unattended without any security precautions at your own risk.
  • Pre-existing damage prior to insurance activation provides no cover, though some insurers cover further damage emanating from already unstable tools.

Brisco Supports Trades with Specialist Work Tool Insurance

Tradespeople buying work tool insurance support smooth business operations, as tailored coverage allows professionals to exercise their expertise across sites without worrying over expensive tools. 

Contact Brisco Business today to compare coverage for your vocation’s obstacles so you can carry on jobs smoothly –  not distressed over livelihood protection.

We also offer policies beyond just tool insurance that cover public liability, professional liability and more across key trade risks.  Compare quotes for tool insurance along with many other types of insurance 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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