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.