If you are a business owner, you may have never really thought about what happens if the tools you need to run your business efficiently are lost, stolen, or damaged. Would you be able to replace them quickly? Can you afford to? Not just the tools your company owns but even hired equipment can be an expense you are liable for if something happens. Luckily tools insurance can take this worry away. With it, you will know if something does happen, you are covered, and you can count on replacement or backup tools to keep the vital work going without delay. Below we will talk about what this insurance is and what it covers.
What is Tools Insurance?
This specialized insurance allows a business and contractor in various fields to ensure the tools they need to operate their business against damage, theft, or loss. The tools covered can range from blow torches to hammers to workbenches and almost everything in between. Some insurers even cover electrical equipment that can include laptops, smartphones, and digital cameras. That is excellent coverage because we all know how often phones and cameras can get dropped, especially at a work site. Coverage tends to vary by an amount based on the number of workers at your business. An example includes:
- Up to five workers – £40,000
- Up to ten workers – £50,000
- Up to fifteen workers – £75,000
- Tools owned by employees – up to £10,000 per person, per claim.
Valuable coverage like this is essential if you are a business that focuses on providing services to clients that would have to be cancelled due to tools being lost, damaged, or stolen. The policy’s cost is likely to pay for itself the first time you have to make a claim, and it saves you from losing or delaying a job.
Does It Cover Worksite Only?
No. That is one of the great benefits of this type of insurance. It is not just the tools at your place of business or at the worksite that are covered. This insurance also covers:
- Property in transit – Tools and equipment that are being transported/ shipped
- Mobile property – Tools and equipment that are being transported from job site to job site
- Property that stays in a moveable location – Equipment like kitchen tools inside of a food truck is an excellent example of this.
So no matter what it is and where it is going in the process of your business, the tools and equipment you own or rent will be covered. Many companies are on the move and never stationary for long. A tool or piece of equipment is bound to be lost or forgotten in the rush and mix of it all. Insurance makes sure that if that does happen, you can easily replace them.
Are There Other Perks?
There sure are. Tools insurance also usually will cover work accidents and vandalism. Equipment can be replaced if a tool is balanced precariously on a sawhorse and takes a crash. Vandalism is a sad truth at jobs, but there are plenty of instances of vandals glueing truck door handles, cutting seats on backhoes, or filling gas tanks with water. While it is infuriating to think of, it is nice to know that these would not be expenses you would have to pay out of pocket if you have insurance coverage for your tools.
What is Not Covered?
Like most other insurances, some conditions and situations will not be covered by tools insurance. You should always check with each insurer as they can vary slightly. These usually include:
- Dishonest acts
- War, nuclear hazard, government seizure
- Pollution damage
- Changes in humidity or temperature
- Loss of documents
- Wear and tear
As with insurance for homes and vehicles, you can add options to your policy to broaden your coverage like flood and earth movement, loss of income, disturbance coverage (electrical or power supply disturbance), and upgrade value.
Shopping for the Right Policy
If you decide that this specialized insurance is the right fit for your business, make sure to do your homework. Get quotes from different insurance providers and make sure you decide on the best deal and the best coverage for the unique needs of your business. No two companies are the same. It would help if you did not buy a policy from any insurer that makes you feel like a number, especially since you will have to contact them in the unfortunate event of any thefts, damage, or loss. This insurance is an investment in your business. Read more about insurance for tools here.
Other useful links about business insurance:
Business Contents Insurance
Business Building Insurance
Employers’ Liability Insurance
Remember to Compare Your Business Costs is here to help your business every step of the way from business advice, or saving you time and money on your business purchases such as: