Tool Cover

What does tool cover mean?

Tool cover is insurance for tools and equipment used for work. Depending on the policy, it may help pay to repair or replace items after a specified event, such as theft or accidental damage.

It may cover hand tools, power tools, ladders and specialist equipment. However, the items, events and locations covered will vary between policies.

Some insurers describe this as tools-in-transit cover or cover for property away from your business premises.

You should not assume that every tool or type of loss is covered. Check the policy schedule and wording before buying cover.

Does van insurance include tool cover?

Tool cover is not included in every van insurance policy. A policy may cover damage to or theft of the van without covering the tools kept inside it.

Some insurers may offer tool cover as an optional section of a wider van or business policy. In other cases, separate insurance may be needed.

Tools will not usually be protected unless the relevant additional cover has been arranged.

Your policy schedule should show whether tool cover is included and the amount insured.

How does tool cover work?

Depending on the insurer, tool cover may be offered within another policy, as an optional extra or as separate cover.

A policy may include both an overall cover limit and a lower limit for a single tool or item.

Check that these limits reflect the cost of replacing your equipment. Expensive or specialist tools may need to be listed separately.

You will usually have to pay an excess towards a claim. The amount should be shown in the policy documents.

What conditions and exclusions may apply?

Insurers may set rules about how and where tools are stored. For example, you may need to keep them in a locked van, secure tool box, garage or other approved location.

Theft from a van overnight may be excluded or subject to extra security conditions. Some policies may provide overnight protection, but this will depend on the insurer and the policy terms. Overnight restrictions and exclusions for wear and tear may apply, depending on the policy.

Other possible exclusions or conditions may include:

• Theft from an unlocked vehicle
• Theft without signs of forced entry
• Tools left in the open
• Rust, wear and tear or gradual damage
• Damage caused by poor maintenance
• Items above the single-item limit
• Tools left in an unattended vehicle for too long
• These are examples only. Your policy may contain different limits, conditions or exclusions.

Is tool cover the same as goods in transit cover?

No. Goods in transit insurance is usually intended for stock, materials or customers’ goods while they are being transported.

Tool cover is intended for equipment you use to carry out your work. Some policies may combine both types of cover, while others treat them as separate options.

Home contents or personal-possessions policies may exclude equipment used for business, so check the relevant policy wording.

What should you check?

Before buying cover, check:

• The total replacement value of your tools
• The value of your most expensive item
• Where the tools are stored during the day
• Where they are kept overnight
• Whether they are left in your van
• The security conditions you must follow
• The policy excess
• Any single-item or total claim limits
• Any exclusions for unattended vehicles

Keep receipts, photographs, serial numbers and an up-to-date list of your tools. These may help an insurer assess a claim, but providing them does not guarantee that the claim will be paid.

How Got You Covered may be able to help

When you ask us about van insurance, tell us about the tools and equipment you carry.

We can explain whether the policies available to us include tool cover or whether separate cover may be needed. We can also help you understand the relevant limits, excesses, exclusions and security conditions.

Availability, price and policy terms will depend on the insurer and the full details you provide. Check the policy documents carefully before buying cover.