What Does Tool Insurance Cover?
For most small businesses, In the building trade, gardening trade and many other trades work tools are crucial and there for insurance for those tools would be an essential part of business insurance policies.
But what does tool insurance actually cover? In a nutshell, tools insurance can cover your hand-tools, power-tools and equipment against loss, damage or theft. Or even provide you with insurance for tools in your van, plant machinery, hired machinery or stock.
The disruption caused if tools were to be lost, stolen or damaged could have a severe impact which is why tool insurance is often considered vital. Whether it’s personal tools or even hired equipment, insurance can cover you, but it is important to get the right coverage too. When looking at taking out tool insurance make sure you know what’s covered and what you want to be covered against. Not all insurance provider will do everything and you don’t want to be caught out!
Here are a couple of questions to consider when it comes to tool insurance and what’s covered
Where are my tools covered? When it comes to your policy it is important to think about where your tools are covered. For example, a basic policy may not extend to things like tools in transit, you may only be insured overnight if the right security is in place so check the policy details carefully before you buy. If you cannot ensure you meet the policy terms and conditions you may have trouble if you had to make a claim.
Am I already covered? If you run your own small business from home it is important to check what your home insurance covers too. Some insurers may cover your tools whilst they are stored in your home but every insurer and policy is different. Some home insurance policies may cover tools that are for work or commercial use, but many standard home insurance policies do not.
It is also important to check your business or public liability insurance policies. Check with your insurer to see if the cover you have 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.
Can I cover Plant Machinery as well? Some policies only cover powered and non-powered portable hand-held tools if you are wanting to cover plant and heavy machinery you will need to look at insurers which can provide that. When taking out insurance you want to have exactly what you need in the one policy.
Are my employees covered? Tools that belong to you and your employees can also be covered under your businesses tool insurance policy. If you have one or more employees it is important to check if they are suitably covered as well. You would need to check if cover extends to their own tools or just the tool you provide. Also, check what regulations they need to follow to remain covered by the policy.