Secure storage
Keep tools locked up inside your home or garage overnight if possible
Cover up to £20,000 worth of tools for your business
Tools covered overnight in a van, no matter where it is kept
No fees to make changes to your policy
Tool insurance, also known as tool cover, is insurance to protect the tools of your trade. If you’re a tradesman, you rely on your tools to get the job done – and chances are you’ve invested a lot of money in making sure you have the right kit.
Tool insurance helps keep that investment safe. If your tools are lost or damaged, it’ll pay out to help you replace them.
Tool insurance policies come with overnight cover – meaning your tools are protected 24/7, whether they’re at home, at your business address, or in your locked van. This also includes tools in transit, so you’ll stay protected wherever you go.
If you're a tradesperson who works with tools every day, chances are you'll have your own set of expensive tools and equipment. Think about how much it would cost if you had to suddenly replace all of these tools in the event of fire or theft incident. That's why it's crucial to have the right protection in place, especially since tool theft is on the rise.
It's not just the cost of replacing tools, either. Consider how much potential business you could lose if something happened, plus the time and effort it would take to purchase everything again.
The right insurance can help cover the costs of replacing your tools and get you up and running again with minimal disruption to your business.
Tool insurance will cover your tools against many different risks – but some things aren’t included. Here’s what’s is usually included in a tools cover policy:
Theft and/or loss
Your tools will be covered for up to £20,000 if they get stolen or lost
Tools kept in a van
Tools left in your van overnight or in transit are covered
Natural disasters like fire, flooding, or storms
Your tools will be covered for any damage caused by natural disasters
Deliberate vandalism or burglary
Tools damaged or destroyed by criminal activity can be replaced or repaired
Accidental damage
You are protected for any accidental damage as long as it isn't considered negligence
Hired in-plant cover
Tools or machinery that you buy on hire-purchase can also be protected
Toolbox insurance
In addition to the tools inside, you can also get cover for the toolbox itself
European Union cover
Your policy can also provide cover for your tools if you are required to travel to Europe
Wear and tear
Any standard wear and tear that happens naturally to your tools over time isn't included in your policy
Deliberate damage
You're not covered if you or your staff cause any intentional damage to your tools
Faulty tools
If there's a fault with any of your tools or equipment, this should be covered by the warranty, not your insurance
Unattended van
It will depend on your policy but if your van is left unattended for more than 48 hours, your tools might not be covered. It's important to check your policy details.
Tool insurance works by protecting the tools you use up to a certain amount. If your tools would cost £5,000 to replace, you can take out £5,000 of insurance with a limit of £20,000.
When choosing tool insurance, here's what to consider:
How much cover you need – This depends on how much you’ve invested in your tools, and how much of a risk you face if something goes wrong
What's covered and what isn't – Some policies might not cover tools overnight or in transit. Others might only cover your own tools, and not those you’ve rented. So, it's important to check your policy documents
No fees – You shouldn't be charged any fees to make changes to your policy, even if you need to cancel. Policies are made straightforward with a flat excess of £200 for all claims
Accidental damage - Some policies will cover you for accidental damage to your tools
The cost of tool insurance can vary based on a few factors. Consider what you need from a policy and shop around to compare insurers.
Remember, it might be tempting to go for the cheapest policy, but this may have the most exclusions or the highest excess, which could make it the most expensive option, should you need to make a claim.
Here are the main elements that affect the cost of tools insurance:
The value of your tools and how many you want your policy to cover will directly affect the cost
By increasing your voluntary excess, you can reduce the cost of your insurance while choosing not to pay an excess will make insurance more expensive
Your insurance will be cheaper if you store your tools in a safe place when you're not using them
Your occupation and the type of work you do can affect the risk of your tools being damaged, lost, or stolen, and so will affect your insurance premiums
Here are some ways you can cut the cost of your tool insurance:
Shop around and compare different levels of tool cover to find an affordable option for your business
The higher the excess you choose to pay, the lower your premiums will be. Just make sure you can afford it, in case you need to make a claim
Over-insuring your tools will cost you more, so double check the real value of them in order to get the appropriate level of cover
Your tools may already be covered by your home or business insurance. If not, it may be cheaper to extend one of these policies to cover tools
Theft of tools is on the rise, so it's even more important to protect your equipment. Here are a few tips to keep your tools safe:
Keep tools locked up inside your home or garage overnight if possible
Installing additional security measures like window grills and CCTV systems can deter thieves
Register your tools’ serial numbers on an online database to track lost or stolen tools
If tools must be stored in a van, ensure it has an alarm and is securely parked, preferably with rear doors against a wall
Never leave your tools unattended and check them regularly to give yourself peace of mind
Marking tools with invisible/UV ink for identification will also help prevent theft
Tool insurance ensures your equipment is protected against loss, theft and damage, vital protection that helps you keep projects on track and maintain high standards. With around one in seven workers (13%) in the UK using damaged tools as they can’t afford replacements, which can compromise safety and productivity, tool insurance is a vital policy for tradespeople.
When you compare quotes with MoneySuperMarket, we’ll help you find the right level of cover, tailored to your specific needs at the best possible price.
Jake Edmonds Senior Commercial Manager
Getting protection for your tools is crucial, but there are other types of insurance you might also need. Here’s what’s available:
If you have any employees, this is a legal requirement – it makes sure you’re protected if anyone who works for you becomes ill or is injured
With public liability, you’re protected if there’s an accident and a passer-by is hurt – for instance, from falling building materials
Professional indemnity insurance protects professionals against claims for negligence, errors, or omissions in their professional services.
If you have a brick and mortar business premises, this keeps you protected against damage from fire, flooding, storms, or vandalism
Self-employed insurance provides coverage for business-related risks, including liability, property damage, and income loss for independent workers.
Also known as builders insurance, this covers you for hazards & risks associated with tradesmen, as well as protecting any equipment you need to do your job
Getting tool insurance quotes with MoneySuperMarket and our preferred partner SimplyBusiness is a simple way to find an affordable deal on cover. Here's how it works:
Let us know about your tools and how much they’re worth, and we'll provide a quote tailored to your requirements
Ensure it meets your business needs and read policy documents.
Once you're happy with your policy offer, simply click through to complete your purchase.
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If your business relies on your tools, it’s worth thinking about taking out a tool insurance policy. Try to add up the value of all the tools you own – consider how much it would cost to replace them, not how much you paid for them originally. If it would be difficult for you to replace your tools, tool insurance might be the smart choice.
You can usually insure any tools up to £20,000. That includes handheld tools, power tools, and plant equipment. Some insurers might exclude some specialised tools, so it’s worth checking your policy document carefully.
If you have van insurance, there’s a chance your tools are already covered while they’re in your vehicle.
If not, look for a tool insurance policy with overnight cover and tools in transit cover – this means that they’re always protected, even when they’re in your van or on the move.
Tools are also covered if they are stored in a car too.
Some types of business insurance, such as business contents insurance or public liability insurance, will let you include tool insurance as an add-on. It can be more convenient and save you money, so check your existing policy.
Tools in transit insurance covers your tools while they’re being driven around, loaded, or unloaded.
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