The business of insurance is a little different when it comes to tradies. There’s a whole world of risks to consider, including workplace injuries, equipment damage and liability claims. In the trades (plumbers, electricians, plumbers and carpenters), their tools aren’t just equipment, but they are the business itself. Without their equipment or the proper equipment, they can’t do their job. 

So it’s no surprise that tradies insure their tools and equipment. This helps to protect their financial stability, workflow and reputation. However, there are some key considerations when it comes to tool insurance. At Morgan Insurance, we value the importance of understanding your insurance policy and ensuring that you’re equipped with the knowledge to navigate your claims with confidence. 

So, here’s our guide to a tradie’s tool insurance: 

Valuation: The Foundation

Let’s take it back to the basics. It’s common for tradies to be underinsured due to their foundations. Valuation ensures that your tools’ worth and costs are appropriately accounted for, so if you need to make a claim, you get exactly what you’re missing. Some things to consider are:

• Market Value: Stay updated with your tool’s value, as it can increase or decrease in value and leave you with a gap in your insurance. 
• Replacement Costs: Consider how much it would cost to replace your tool entirely to effectively prepare for the worst. 
• Item List: It can seem tedious, but it is important to list all your items and tools of high value to ensure that you’re fully covered. This can include tools such as laser levels and diagnostic equipment. 
• Documentation: Evidence is important. Keep receipts, photos and other documents that prove the contents of your toolkit. 

Security: Conditions and More

Insurance claims can be rejected due to beliefs of negligence, where damage or stolen property can be due to a lack of security on the owner’s behalf. To avoid this, you should take precautions to ensure that security is maintained. The conditions of your insurance policy will impact your claims success, like: 

• Understand Your Policy Requirements: Your policy will likely detail that your tools must be stored in a locked vehicle or building. This way, if they are damaged or stolen, this will not be through any negligence on your behalf. There may also be specific requirements for storing tools overnight, so it is important to understand your policy thoroughly. 
• Cover Gaps: Common tool insurance exclusions include wear and tear and disappearance, where there is no evidence of theft, broken entry, etc.

So, take your own measures to ensure that your policy works for you and not against you. For instance, secure your vehicle with alarms, keyed storage boxes and avoid leaving your tools in visible areas. 

Claims: Step-by-Step

When the worst happens, and you need to make a claim, you’ll want to make sure you do everything right. With an insurance broker like Morgan Insurance by your side, you can ensure that everything is taken care of. But following these steps will ensure a smoother process: 

• Act: If any damage or theft occurs, take any photos as evidence and immediately call the police.

• Claim: Contact your broker to submit your claim. They’ll ask for any necessary and supporting documentation that you can provide (i.e. photos, receipts, etc).
• Excess: Your insurance policy should detail what your excess is (i.e. how much you’re liable to pay upfront before your insurance covers the rest). Understanding this is important as it ensures there are no surprises when you’re filing a claim.

It’s normal to miss steps and overlook certain details. That’s why we recommend using a broker like us to help you navigate your claim process and ensure you get the outcome you deserve, every time. 

Navigate Your Tool Insurance With Morgan Insurance

We’re insurance experts, so when you trust us to navigate your policy and claim for you, you can sit back and relax. The truth is, most of us barely have time to read through the conditions of our insurance policy, let alone navigate the claim process ourselves. That’s what we’re here for. 

You don’t want to risk missing vital information and conditions, as this can leave you vulnerable when it’s crunch time. Protect your tools and your business with tool insurance. Morgan Insurance can help you get started. Contact our team today.