In many business areas, work simply couldn’t happen without the right tools. In many of the building trades, gardening and many other areas tool insurance is an essential part of their business insurance policies.
The disruption to the business should tools become lost, damaged or stolen could have a severe impact which is why many businesses that take out tools insurance could consider it essential.
When organising your tools policy, the most important thing to ensure is that the cover equals the full value of your tools. Under-insurance can leave you in a difficult situation if you do need to make a claim and the settlement you’re offered could be less than you require.
It is also important that you remember that the age, use and type of tools that you own could also potentially affect your cover.
E.g. If you don’t have a ‘new for old’ policy in place you may not get the value of your tools when they were first purchased, you could get a figure which equates to their value when they were lost or stolen.
Providing Security for your Tools
One of the key elements of a tools insurance policy is the security endorsements it includes. You need to look into these very carefully as they will specify the conditions you must keep your tools in for them to be covered by the policy.
They may state that you cannot keep your tools in your van or on-site when you’re not on premises. They may also state the necessary vehicle alarm specifications you must have if your tools are in your van and the need to keep your vehicle in a locked compound to be covered. You may need to be able to provide proof of the alarm you have, should your van and tools be stolen together.
Preventing a Claim
Specialist tools can be worth thousands of pounds which is why they’re so tempting for thieves. Good practices to help keep your tools safe may include:
- Never leaving your tools unattended, epecially on-site or in an unlocked vehicle
- Using invisible markers so your tools can be traced by the police
- Only store your tools in your vehicle if the policy states you can and you have the right security alarm
Supporting your Claim
To ensure, if you should need to make a claim, that things run smoothly you need to make sure you take all necessary precautions laid out in the terms of your policy.
You may also wish to make sure you keep good records and have receipts for all of your tools, full specifications and even photographs if possible.
You should also obtain a Crime Reference Number (CRN) from the police if your tools are stolen or damaged by someone other than yourself.
With tools insurance claims there is usually an excess to pay; discuss this with your broker or insurer so you know exactly how much this will cost you should you need to pay it.
With tools claims it is understandable you need them sorted as quickly as possible as you need your tools to do your job; ensuring they are stored safely and securely and used properly means you may reduce your risk.