Tools of Trade
Insurance.

Tools of trade insurance is designed to cover loss, theft or accidental damage to the hand tools, power tools and trade equipment you rely on to carry out your work. If you are a tradie or contractor in construction, electrical, plumbing, carpentry or mechanical trades, this is the cover designed for your tools. Cover generally applies whether your tools are on a job site, in transit or stored securely, subject to policy terms.

Tools of trade insurance does not typically cover general wear and tear or mechanical breakdown of tools. Theft from an unlocked or unattended vehicle is commonly excluded or subject to strict conditions around storage. Unexplained disappearance without evidence of theft may also be excluded. Some policies exclude tools left unsecured on a job site overnight. Conditions and exclusions vary significantly by policy.

There is no general law requiring tradespeople or businesses to hold tools of trade insurance in Australia. Some principal contractors or site managers may require evidence of cover as a condition of site access. Requirements vary by project and industry.

Tools of trade insurance can generally cover a wide range of trade equipment including hand tools, power tools, battery-operated tools and specialist trade devices. Items such as drill sets, circular saws, nail guns, laser levels, electrical testers, plumbing diagnostic equipment and measuring instruments are common examples. Get in touch and we can confirm what may be insurable and any individual item limits that apply.

The cost of tools of trade insurance depends on the total value of equipment insured, the trade or business type, storage arrangements and claims history. Cover for a modest tool kit can start from around $300 per year. Contractors with high-value specialist equipment or a history of claims may pay upwards of $1,000 or more. These are general market ranges only. An accurate premium requires an underwriter assessment of your specific circumstances.

Tool theft and damage claims vary widely. A van break-in resulting in a full set of power tools being stolen can easily reach several thousand to tens of thousands of dollars in replacement cost. Specialist trade equipment losses can run higher. Beyond the replacement cost, not having tools available can mean lost working days and lost income while replacements are sourced.

Cover for theft from vehicles varies by policy and is one of the most common areas of contention in tools of trade claims. Many policies require the vehicle to be locked and tools to be stored out of sight in a locked hard-top canopy or locked internal storage. Some policies exclude vehicle theft entirely. Open ute trays are commonly excluded unless a specific extension is in place. Read the policy wording carefully and get in touch to confirm the conditions before relying on this cover.

Some policies include cover for theft from a job site or construction site, including from a locked site box. Other policies may exclude theft from open-air locations or require the tools to be secured in a specific manner. If you regularly work on construction sites and leave tools overnight, get in touch and we can confirm whether your policy extends to that scenario and what conditions apply.

Tools of trade insurance and portable equipment insurance describe closely related covers. Tools of trade insurance typically refers to cover for the hand tools and power tools carried by tradespeople, while portable equipment insurance often refers to a broader range of business equipment including electronic devices and specialist instruments. In practice, the covers can be structured similarly and the terminology varies between insurers. Get in touch and we can identify which product best fits your equipment.

Many business pack policies include a tools or general property section that may provide some cover for portable equipment. However, the scope and limits of that cover vary by policy and it may not extend fully to equipment used on external sites or stored in vehicles. A standalone tools of trade policy is typically structured specifically for tradespeople operating across multiple locations. Get in touch and we can advise on which approach suits your situation.

Insurers typically ask for the total value of tools and equipment to be insured, a description of the main items, your trade or business type, how and where tools are stored when not in use, the type of vehicle tools are kept in, geographic operating area and claims history. When you get in touch, we will help you compile this information and present it to our insurer panel.

Notify us as soon as possible. For theft, report the incident to police immediately and retain the police event number, as most policies require a police report for theft claims. Do not authorise repairs or dispose of damaged items without first consulting us, as this may affect the assessment of the claim. We will remain actively involved throughout the process.

A decline from a standard insurer does not mean cover is unavailable. We have access to a wider range of insurers beyond the standard market. Get in touch and we can identify what options are available for your trade and circumstances.