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Tool insurance

Get a £20 gift card with tool insurance1

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1Eligible commercial businesses purchasing tool insurance by 5th Oct and continuing with an active tools insurance policy paid for at least 45 days from the policy start date.T&Cs apply. Restrictions apply, see ''

What is tool insurance?

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.


What does tool insurance cover?

Tool insurance will cover your tools against many different risks – but some things aren’t included. Here’s what’s on offer:

  • Tick

    What’s included

    • Theft and/or loss

    • Tools kept in a van overnight (no matter where the van is kept)

    • Natural disasters like fire, flooding, or storms

    • Deliberate vandalism or burglary

    • Accidental damage – as long as it isn’t considered negligence

  • Cross

    What isn’t

    • Ordinary wear and tear to your tools isn’t included

    • You’re not covered if you or your staff cause deliberate damage

    • If there’s a fault with your tool, it should be covered by the warranty – not

How does tool insurance work?

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. You can choose how much cover you need – it depends on how much you’ve invested in your tools, and how much of a risk you face if something going wrong.

It’s important to double-check your policy documents so you know exactly 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.

No fees are charged 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


What other types of insurance can I get for my business?

Getting protection for your tools is crucial, but there are other types of insurance you might also need. Here’s what’s available:

  • Employers’ liability insurance

    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

  • Public liability insurance

    With public liability, you’re protected if there’s an accident and a passer-by is hurt – for instance, from falling building materials

  • PI insurance

    Professional indemnity insurance helps you out if you damage a client’s property or they’re unhappy with your work, and take you to court

  • Business buildings insurance

    If you have a brick and mortar business premises, this keeps you protected against damage from fire, flooding, storms, or vandalism

Sam Meadows

Our expert says


Theft of tools can be a huge problem for sole traders, so tool insurance can be a really good way to lessen the financial impact if you should get unlucky. Carefully work out the value of your tools, as that will determine the level of cover you buy. Overestimate the value, and you could end up paying too much for your premium but underestimate and you could be left with a shortfall if you make a claim.

- Sam Meadows, Insurance Expert

Get a quote on tool insurance

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:

  • Tell us about your business

    Let us know about your tools and how much they’re worth, and we'll provide a quote tailored to your requirements

  • Check your requirements

    Check the policy offer meets the demands and needs of your business and read the policy documents

  • Purchase your policy

    Once you're happy with your policy offer, simply click through to complete your purchase.

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 £10,000. 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. 

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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