Why Do I Need a Separate Tool Insurance Policy, Are They Not Already Covered?
If you’re a tradesman running your own business, your tools are your livelihood without them it would mean running your business would be near on impossible. The risk in the event of damage or loss to your tools could mean damage to your reputation or finances. Completing a job to a high quality and on time is vital, thankfully, you can insure yourself against certain instances should this happen.
You need to make sure your tools and equipment covered in the event of accidental damage and theft. Insuring tools is considered an essential part of a business to ensure business continuity, but are they already covered or is specialist insurance required to protect them?
Most likely you have the following insurances in place, General or a tradesman’s Business insurance and public liability insurance. The one you may be considering in is tool or equipment insurance which covers you in many ways standard business insurance or liability insurance will not.
So what does business insurance cover? Business insurance can help pay the costs of property damage, lawsuits, lost business income, and other covered losses. This type of cover can also include policies such as property, general liability and business income coverage into one convenient policy, to help protect against specific risks unique to their situation.
Public liability insurance can protect you and your business against claims made by clients or members of the public. It covers the cost of claims for incidents that occur in connection with your business activities. This could include cover for the compensation payment or legal expenses in the instance of personal injury or death as well as the costs incurred should the property of a client or member of the public be lost or damaged on your property
In some instances, your public liability may have you covered but you need to check as it can only protect you against any damage you might do to third party property, not damage caused to your own.
You want to make sure your cover fit the risks you may encounter. For example, you may be covered for third party damage or theft by your public liability insurance but you may not be covered if they are stolen from your van or incur accidental damage.
Check with your insurer to see if your cover fits your needs. As with all insurance, your tools can only be covered by one policy at a time. Should you have two policies covering them, the insurers will only be responsible for their share of the total claim amount.
Tool insurance will cover you in the event your tools are lost, stolen and possibly damaged. It also provides cover against the specific risks and situations tools may be exposed to things which your other insurances may not, such as overnight storage in a van, accidental damage in transit or on-site. Tool insurance is specifically designed for you or your business and can provide you with the peace of mind that you have the right cover in the event you should need to make a claim.