Tool Insurance
Insurance coverage for your portable items and tools that you take away from your main address
What is Portable Items Cover?
Tool Insurance, General Property Insurance, Portable Equipment insurance all refer to your business use equipment that you take away from your regular place of trade.
For example, a tradesman may insure the tools that he take from worksite to worksite.
An office worker may insure their laptop that they take home with them.
A professional in the medical field may insure their portable diagnostic equipment that they take to and from patients homes.
These items can be insured for anywhere in Australia for such events as damage in transit, fire, accidental damage, and theft. Most business insurance policies will only cover these items at your insured address, so it’s important that if you take items with you during the course of your work, that they are adequately insured.
TOOL INSURANCE ENSURES THAT YOU CAN REPAIR OR REPLACE DAMAGED OR STOLEN EQUIPMENT.
What's Covered
Accidental Damage
Collision whilst in transit
Theft
Fire, Flood, Storm
What's Excluded
Theft In Open Air (unless requested)
Electronic Breakdown
Items over $2,500 (unless specified)
Theft without forcible entry
What items are covered under tool insurance?
- Your Tools of Trade
- Light Machinery
- Survey Equipment
- Mobile Electronic
- Mobile Medical
- Photographic/Cameras Including Drones
- Diagnostic and Measuring
- Musical Instruments
- Sports Equipment
- Shipping Containers
- Photo booths
- Jumping Castles
- Segways
- Theatre Costumes
- Tradie Vehicle Fitouts
6 tips to reduce your tools insurance premium in Australia
Having tool insurance is essential — without your tools, you cannot work. But making sure your policy is affordable matters just as much as making sure it is adequate. Here are six practical ways to reduce what you pay without sacrificing the cover you actually need.
Check your sub-limits before specifying items
Most tools insurance policies automatically cover individual items up to a certain value — typically $2,500 to $3,000 per item. Specifying tools that fall under this threshold adds unnecessary premium. Only list items on your policy that exceed the automatic inclusion limit to avoid paying for cover you already have.
Increase your excess to reduce your premium
An excess is the portion of any claim you contribute yourself before the insurer pays the rest. Raising your excess from $250 to $500 per claim can meaningfully reduce your annual premium. Be mindful that beyond a certain point, further increases have diminishing impact on premium reduction — a broker can model the right balance for your situation.
Set your sum insured by location, not total value
Tools insurance is designed to cover the greatest total value of tools at any one location at the same time — not the combined value across all locations. If you have $5,000 of tools in one ute and $5,000 in another, you only need to insure for $5,000, as a simultaneous theft at both addresses would be treated as two separate claims.
Consider reducing your level of cover
Some insurers allow you to limit your tools cover to fire, perils, and collision only — removing accidental loss, damage, and theft from the policy. This can reduce your premium significantly, but it does mean you would not be covered for some of the most common claim scenarios. Weigh the premium saving carefully against the risk you are prepared to carry.
Bundle your tools with public liability or business insurance
Many insurers prefer not to write tools cover in isolation and offer discounts when you combine it with a public liability policy or a business insurance package. Bundling gives you more options, better terms, and in most cases a lower premium on the tools component than if it were insured separately.
Shop the market through a specialist broker
One of the simplest ways to reduce your tools insurance premium is to work with a broker who accesses a large panel of specialist tool insurers on your behalf. Rather than going to one insurer directly, a broker compares multiple quotes, applies the tips above on your behalf, and ensures you receive the most competitive rate available for your specific tools and occupation.
Ready to see if you can pay less for the same cover? We approach a large panel of specialist tool insurers on your behalf and find the most competitive rate for your situation.
Get a tools insurance quoteValuation, security and claims what every tradie needs to know about tool insurance
For tradies plumbers, electricians, carpenters, and builders tools aren't just equipment. They are the business. Without the right tools, you can't do the job, and without the right insurance, a theft or loss can bring everything to a halt. Here's what you need to know about valuing your tools correctly, meeting your policy's security conditions, and making a successful claim when something goes wrong.
Valuation getting it right from the start
Underinsurance is the most common and costly tool insurance mistake
Review market value regularly
Tool values change over time some appreciate, others depreciate. If you haven't reviewed your insured value recently, you may have a gap between what you're insured for and what it would actually cost to replace your equipment.
Use replacement cost not purchase price
Always base your sum insured on what it would cost to replace your tools today not what you paid for them years ago. Prices for quality trade tools have risen significantly and your old purchase price may leave you well short.
List high-value items specifically
Laser levels, diagnostic equipment, and other high-value specialist tools need to be listed individually on your policy. A generic "tools" sum insured may not be enough to replace individual items of significant value.
Keep documentation
Receipts, photos, and serial numbers are your evidence at claim time. Keep a record of your toolkit including photos of high-value items stored somewhere you can access if your tools are stolen from your vehicle.
Security meeting your policy conditions
Claims can be rejected if security conditions aren't met
Read your policy's storage requirements
Most tool insurance policies require your tools to be stored in a locked vehicle or locked building when not in use. If tools are stolen from an unlocked ute tray, your claim may be rejected on the basis of negligence. Know what your policy requires before a theft happens.
Understand overnight storage conditions
Many policies have specific requirements for where tools must be stored overnight your vehicle, a locked shed, or a secured worksite. Check your policy wording carefully and comply with the overnight storage conditions every night.
Know the common exclusions
Wear and tear is almost always excluded from tool insurance only sudden and accidental loss or damage is covered. Disappearance where tools go missing without evidence of theft, forced entry, or damage is also commonly excluded. If there's no sign of a break-in, a claim for "missing tools" is unlikely to succeed.
Take active security measures
Fit your vehicle with an alarm, use keyed lockboxes for your ute tray, and avoid leaving tools visible through windows. These measures not only reduce the risk of theft they demonstrate that you took reasonable precautions if a claim is ever disputed.
Claims what to do when something goes wrong
Following the right steps makes the difference between a paid and declined claim
Act immediately
If theft or damage occurs, photograph the scene immediately broken locks, forced entry, damaged equipment before anything is moved or cleaned up. Call the police and obtain a report number. Most policies require a police report for theft claims.
Contact your broker
Call your broker to lodge the claim not the insurer's call centre directly. A broker submits your claim with the supporting documentation structured correctly, which increases the chance of a smooth and timely outcome. Provide receipts, photos, serial numbers, and the police report number.
Know your excess
Your policy will specify the excess the amount you contribute before the insurer pays the rest. Understanding your excess upfront avoids surprises when the claim is settled. If the cost of replacement is close to your excess, it may not be worth claiming.
Let your broker manage the process
A broker follows up with the insurer, pushes back on any disputes, and advocates for a fair settlement. You focus on getting back to work your broker handles the paperwork and communication from lodgement through to payment.
At Morgan Insurance Brokers, we manage your tool insurance policy and any claims on your behalf so you can focus on the job, not the paperwork. We understand what tradies need and we make sure your policy works for you when it matters most.
Get a tool insurance quote