Having tool insurance is important. Without your tools, you cannot work. Ensuring that you have adequate cover is crucial for your business to continue operation with minimal disruption, and also without the financial burden of replacing all of your tools in one go. Making sure your insurance policy is affordable is also very important. Here are 6 tips that can help you reduce your Tool Insurance premiums.

Look into the sub limits

On tool insurance policies, there are usually automatic cover for items under a certain limit. Standardly policies cover items automatically for $2,500 – $3,000.
By noting your tools on your policy that are this amount or less will incur additional premium unnecessarily. Only look to specify items that are higher than the automatic inclusions.

Look at increasing your excesses

A simple way to reduce the amount you pay on tool insurance is to increase your excess. An excess is a portion of the claim that you bare yourself. Increasing your excess from $250 to $500 per claim can reduce your premiums. Be mindful the higher the excess goes, the less the premium starts to reduce.

Selecting the correct sum insured

Tool Insurance is important. The sum insured should be the greatest total value of the tools at any one location. This single sum insured will cover you across multiple locations, even though the total value of the tools across multiple locations is greater than the sum insured. For example, if you have $5,000 worth of general tools in one ute at your address, and another $5,000 worth of tools in a ute at your employees address, you will only need to insure for $5,000. If a theft occurred at both addresses on the same night and your tools were stolen, this would be deemed as two separate claims as they were unrelated events.

Reducing your level of cover

Some insurers provide you with the option to limit your cover to just fire and perils, and collision cover. This can reduce your premiums but this would mean you wouldn’t be insured for accidental loss, damage, or theft.

Combining your policies for a discount

Some insurance companies don’t like to insure just your tools by themselves and prefer to insure your Public Liability Insurance and Business Package insurance as well. Combing your tools with a Public Liability or Business Insurance policy provides you with more options and potentially lower premiums. The insurers usually provide discounts on the tool portion if you insure other covers with them.

Shop around

As you can see above, there are many different options that you have to restructure your tools insurance policy to look at bringing the cost of insurance down. One of the simplest ways to reduce your insurance premium is to contact Morgan Insurance Brokers. We approach a large panel of specialist tool insurers on your behalf. This guarantees that you will be provided with the most competitive quotes on the market for your Tool Cover. Reach out to us today for a quote.