For many tradies, tools of trade aren’t just equipment — they’re your livelihood. If you can’t work, you can’t earn, and replacing tools quickly after theft, damage, or loss can be the difference between a minor setback and weeks off the job.
Yet time and time again, tradespeople discover they’re underinsured, or worse, not insured in the way they thought they were. Tools evolve, collections grow, and insurance often gets left behind.
Here’s what you need to know — and the top 10 tips to help protect your tools properly.
Why Tools of Trade Insurance Matters
Power tools, hand tools, diagnostic gear, specialised equipment — these items add up quickly. Many tradies assume their tools are covered under their vehicle insurance, home insurance, or business policy by default. Often, they’re not, or the cover is limited, conditional, or capped.
Insurance isn’t just about replacing stolen gear — it’s about getting you back to work fast, without a financial shock.
Top 10 Tips for Insuring Your Tools of Trade
- Don’t Assume Your Tools Are Automatically Covered
A very common mistake is assuming tools are fully covered under a car or home policy. Coverage may be limited, exclude business use, or only apply in certain situations. Always check.
- Understand Where Your Tools Are Covered
Tools may be in your vehicle, on a job site, at home, or in a shed. Some policies only cover tools at specific locations or exclude overnight vehicle storage.
- Theft Isn’t the Only Risk
Fire, water damage, accidental damage, vandalism, and even transit damage can all affect your tools. Comprehensive cover matters — not just theft.
- Underinsurance Is Widespread
Many tradies haven’t updated their cover in years. Tools are added gradually, so it’s easy to underestimate their total value. Underinsurance can leave you paying out of pocket when it matters most.
- Security Requirements Matter
Policies often include conditions like locked vehicles, alarms, immobilisers, or secure storage. If these conditions aren’t met, claims can be reduced or denied.
- Portable Tools Need the Right Cover
Tools that move between sites need insurance that follows them. Not all policies offer broad, portable cover — this is where advice becomes critical.
- New for Old Isn’t Always Standard
Some policies replace tools at depreciated value, not replacement cost. This can leave you short when replacing tools at today’s prices.
- Keep Records and Proof of Ownership
Photos, serial numbers, receipts, and tool lists make claims smoother and faster. Without proof, claims can become delayed or disputed.
- Downtime Costs Aren’t Always Covered
Losing tools can mean lost income. Some policies offer additional benefits to help reduce downtime — but only if they’re included upfront.
- Your Insurance Should Grow With Your Business
As your trade grows, so does your gear. Insurance isn’t “set and forget.” Regular reviews ensure your cover keeps pace with your work.
Why Advice From a General Insurance Broker or Adviser Is So Important
Tool insurance isn’t one-size-fits-all. The risks faced by a plumber, electrician, builder, or mechanic can differ significantly. A General Insurance Broker or Adviser understands these differences and can tailor cover to how, where, and when you actually work.
They’ll help:
- Identify gaps in cover
- Avoid common exclusions
- Ensure policy conditions are practical
- Reduce the risk of underinsurance
- Make sure claims work when you need them most
Most importantly, good advice provides peace of mind — knowing your livelihood is properly protected.
Final Thought
Your tools are more than metal and batteries — they’re your income, your reputation, and your ability to provide for your family. Being underinsured is one of the most common and costly mistakes tradies make.
Before something goes wrong, talk to your General Insurance Broker or Adviser. The right advice today can save you time, stress, and money tomorrow.
If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.
This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.
(Feedsy Exclusive)
Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Please consider whether the information is appropriate to your circumstance before acting on it and, where appropriate, seek professional advice.