Tools, chances are you have accumulated a few over the years, and imagining a day without them probably sends a shiver down your spine. Whether you are a plumber or a landscaper, your tools are what help you to perform your professional trade services and get the job done.
Without your tools, you’re kind of stuck up a creek without a paddle. Not having your tools of trade around means you can’t do your job, and without your job, there’s no income and you’ve a real problem on your hands.
Like any small business owner, you are likely to have a business plan in place, designed to help you stay in business for the long run. Things like Tool insurance* (also known as Portable Equipment cover) are the kind of safeguards that you need to consider having in place to protect your business.
Let’s take a look at all things Tool Insurance cover, and how it can help your business when you may need it most.
What is Tool insurance cover?
Tool insurance cover or Tool insurance in short, is designed to cover you for the loss and damage to your tools and equipment due to theft, fire and other perils listed in the wording, anywhere in New Zealand.
Why do tradies need to consider Tool insurance?
If your tools were lost or stolen, your work comes to a quick halt, meaning you can’t work on your current jobs or start any projects you might have lined up in the pipeline. Postponing jobs means that your clients could very well cancel and take their business elsewhere, causing a crushing blow to your finances and reputation.
Replacing your tools can be a costly experience and could mean digging into your savings or even taking out a loan to purchase them, an added and unplanned expense that you can do without.
It’s no secret that tools aren’t cheap, and if you took a moment to quickly add up the value to replace them all, you could be potentially looking at thousands of dollars. It’s not just the smaller stuff like your cordless power tools and even your mobile phone, tablets that you need to consider but also machinery like generators and bobcats too.
What does Tool insurance cover and exclude?
While every Tool Insurance policy will have its own specific inclusions and exclusions this is an example of what you can expect to be typically covered and excluded in your policy. If you are ever unsure of your coverage it is best to get in contact with your insurer to clarify the details of your policy.
What’s typically covered*?
Loss or damage that is caused by:
- Fire, storm, water, explosion, impact or malicious damage
- Theft following forcible and violent entry to locked vehicles or locked buildings
- Theft of equipment securely attached to a vehicle through the use of locks or padlocks
Specified portable equipment can include items such as:
- Mobile plant
- Photographic or video equipment
- Mobile communication equipment, including telephones and radios
- Electronic equipment, including computers, diaries, GPS units
- Accessories for the items listed above
What’s typically NOT covered*?
Loss or damage to your portable equipment that is caused by:
- Wear, tear or gradually developing conditions
- Gradual cracking, scratching or marring
- Rust, oxidation, mildew, mould, moths, insects, vermin, dry rot, contamination or pollution
- Any process of heating, drying, cleaning, dyeing or alteration to any insured item
- Faulty materials or workmanship
- Theft by employees
- Unexplained inventory shortage
Things to think about when purchasing your Tool insurance
No two tradies are the same, and neither are the tools in your toolbox. So when it comes to Tool insurance it makes sense that there are a few things you need to consider when looking at taking out the right cover to protect your tradie business, because there isn’t a one-size fits all coverage.
- Does your Tool insurance policy protect your tools anywhere in New Zealand? Be careful if there are any geographical restrictions where you may not be covered
- What excess do you need to pay in the event of a claim?
- Is your level of cover adequate enough to replace your tools? While insuring your tools for less than what they are worth may make your policy cheaper in the short term, come claim time you may find yourself more than out of pocket.
- Does your policy cover you for stock? This may be for things like specialised equipment carry with you like switches and cables for example.
Prevent tool theft
Tool insurance is one way you can protect your tradie business in the event that your tools are lost or stolen, but as the old saying goes, prevention is always better than cure. By putting some steps in place to prevent your tools being stolen, you can save yourself a lot of trouble down the track.
Some things you can consider:
- Make sure your tools are always locked up when not being used. Your toolbox should be fitted with lock system
- Don’t leave your tools lying around, this makes them an easy target for would be thieves
- Consider investing in an engraving tool to mark your tools with your business name and contact details. This makes them easier to identify if they are lost on site or stolen.
Get your Tool insurance sorted today
Arranging Tool insurance for your tradie business is easy as pie with BizCover. Our online platform means there’s no messy forms to fill out and we do the shopping around for you. Receive multiple quotes from some of New Zealand’s most trusted insurers and get your business insurance sorted quicker than a smoko break. Experience insurance without the drama at BizCover today.
* This information is a general guide only and does not take into account your objectives, financial situation or needs. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice.