Understanding Tools Cover

If you are a tradesman running your own business, you will understand how important your tools of trade are, as the livelihood of your business depends on them being safe.

However, accidents and unforeseen events can arise, leaving your tools damaged, lost, destroyed or stolen, risking the financial security of your business.

Luckily you can insure yourself against such instances so that if you are forced to have to replace your tools you are covered for the chosen sums insured.

Tools insurance can also be extended to include any employee’s tools and equipment.

What kind of cover is offered under insurance for Tools?

  • Loss of or damage to portable tools belonging to you or the property of partners, principals, directors or employees used on the site of a contract, carried out by you in connection with the business often on an ‘All Risk’ basis
  • Automatic reinstatement of sum insured

There are often limits on the maximum sum you can insure your tools for, both as a full sum amount and a single article limit. It is important to speak with your insurer to find out what is covered by your policy. Tools cover is often added as an extension to your main Public and Employers Liability insurance.