Tradies: Protect your business with tool insurance

Incidents of tool theft occur all over Australia, with power tools being a key target for thieves. If you’re an Aussie tradie, you’ll know how valuable and essential your tools really are. If you were a victim of theft, would you be able to turn up the next day and keep working? The likely answer is no – most tradies can’t work without their supplies. Without tool insurance you would have to dig into your own savings to replace your tools.

At Western General Insurance, we’ve got great solutions for you that mean you can continue to work in the event of theft or loss. In our experience, tool cover is one of the most commonly claimed on forms of trade insurance, so it certainly pays to have some cover in place, especially considering how inexpensive this protection can be.

What will tool insurance cover?

General property or tools of trade insurance typically allows for replacement of tools in the event of fire damage, storm damage, vehicle collision or rollover and theft. Not all policies are the same, so you’ll need to look at what you actually need versus what’s out there. Policies differ in terms of the conditions of the cover, and items included (such as mobile phones). Some policies will cover your tools regardless of how they are stored, whereas others will only cover you if your tools are stolen from a secure location.

Accidental damage cover also varies depending on your provider. Many policies out there will only cover accidental damage when it is caused by a vehicle collision or rollover, however there are some policies which will cover a broader range of accidental damage causes. You might be covered in your home, van or on the job site but this depends on which kind of cover you have chosen from.

Make sure you understand the level of cover you need – and if you’re not sure, speak to your local insurance broker to get advice.

What won’t be covered?

Each type of tool insurance will have exclusions, so make sure you identify what you need. For example, some may not cover your tools when they are outside of the home. However, all of these types of insurance have some similar exclusions in common. Including:

  • Normal wear and tear: You won’t be covered for average wear and tear over the years, which includes rust and gradual deterioration.
  • Mechanical faults: Insurance doesn’t typically cover malfunctions; this is a manufacturer issue that might be covered by product warranty.
  • Confiscation by authorities: If your tools are confiscated lawfully, your insurer is not obliged to replace your tools.
  • Scratches and dents: These don’t rise to the level of significant damage, so you probably won’t be covered.
  • Third-party damage: Your insurer won’t cover you if a third-party damages your tools, for example during repair work.

Western General insurance solutions for tradies

If you’re a tradie, we’ve got great solutions for you – from liability to flexible tool covers, talk to us about your insurance needs and get the right protection for your business.

Contact us today for a free quote or to find out more about what we can do for you and your business.

Is COVID-19 threatening your business?

Australian businesses have been urged to recognise the significant level of ransomware threat from cyber adversaries. Scamwatch has received over 3,900 scam reports mentioning the coronavirus with over $3.1 million in reported losses since the outbreak of COVID-19. Ransomware acts as a method of extortion, locking a computer’s content and displaying a message requiring victims to pay a ransom in order for them to regain access. The emails delivering ransomware to victims often mirror the branding of trusted and reputable corporations as part of their techniques.

Why are businesses vulnerable now more than ever?

With lockdown restrictions, Australians are relying on the internet more than ever before. Residents are compelled to shop online, while employees have adopted a new way of working, from home. Cybercriminals are using the pandemic to their advantage by preying on the fears and susceptibility of the population. As people begin to use new online services, there’s a learning curve as they may be unfamiliar with different privacy settings, leaving themselves unprotected to an attacker. With screen time increasing during the lockdown period, so does the size of information available to cybercriminals.

How to reduce the cybercrime risk to your company

  1. Train your employees on security measures: It’s essential to implement the right security protocols that mitigate most of the risk. Employee training in this area should be a key priority for business owners. Well-informed workers make it difficult for scammers to gain unauthorized access to networks, files and information.
  2. Update your company’s operating systems and software regularly: Necessary remote work security practices include two-factor authentication, implementing a zero-trust network strategy and using an operating system that is secure by design. Each employee’s operating systems and software should be updated as frequently as possible.
  3. Use encryption for sensitive data and information: With the rise in employees working away from the office, communication of sensitive information is frequently occurring through email and phone. Companies should use full-disk encryption to protect computers, tablets, and smartphones of employees, saving a copy of the encryption password in a secure location separate from stored backups. A crucial note is that email recipients typically need the same encryption password in order to decrypt and access the information. You should never send the password or key in the same email as the encrypted document. Instead, give this to employees via a phone call or some other method.

Staying up to date with recent scams

You can access the most recent scams impacting business through the Scamwatch website. Businesses can also sign up to the ACCC’s Small Business Information Network to receive emails about new or updated resources and scams relevant to the small business sector. You can find more information on what to keep an eye out for and how to prevent cyber security threats here.

Cyber insurance

Cyber insurance acts as a safety net should your business be impacted by a cyber-attack or data breach. Western General Insurance has access to policies that can include business interruption loss due to a network security failure or attack, human errors, or programming errors, as well as liability arising from failure to maintain confidentiality of data.

To find out more or get a quote, contact us.

Do you know your WorkSafe requirement around COVID-19?

As our trusted clients, we wanted to make you well-aware of recent changes regarding COVID-19. As of 28th July 2020, Victorian employers are now required to notify WorkSafe immediately when they become aware that a worker has received a confirmed coronavirus (COVID-19) diagnosis. More precisely, an employer must notify WorkSafe as soon as they become alert that:

  • An employee, contractor, or an employee of a contractor has received a confirmed diagnosis of COVID-19; AND
  • The individual has attended the employer’s workplace in the 14-day period prior to the onset of symptoms or the confirmed diagnosis, whichever occurs first.

Self-employed persons are also required to notify WorkSafe under the regulations. This regulation will remain in place for the next 12 months.

The change comes into place under the Occupational Health and Safety Act and aims to assist WorkSafe to reduce the risks to health and safety in the workplace that are arising from COVID-19. We are now aware of high importance of timely notification of a worker that has tested positive, therefore the effective management of health and safety risks is critical.

Potential breaches of this employer duty will be swiftly investigated to ensure compliance. Failing to notify WorkSafe under section 38 of the OHS Act can lead to fines of up to $39,652 (240 penalty units) for an individual or $198,264 (1200 penalty units) for a body corporate.

What employers should do now

Victorian employers should review their incident notification policies to ensure that any COVID-19 case is reported to WorkSafe Victoria. You should also take hands-on action to remind workers of your companies COVID-19 Plan, policies and procedures, including:

  • Requiring workers to notify you if they have tested positive for COVID-19;
  • Directing workers to stay home if they are sick or displaying symptoms;
  • Instructing workers to notify you if they have been in close contact with a person who has had COVID-19;

Training workers on the use of PPE and appropriate hygiene measures;


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