Home > Blog > Tool Insurance: What is it and do you need it?

Life as a tradie can be full on. Juggling workloads, managing staff, chasing up payments –it can leave you with little space left in your mind to focus on other things. Unfortunately, this ‘running on fumes’ mindset can often leave you thinking that your operations and your equipment are impervious to hindrances, as you simply don’t have time to consider the possibility. If you keep your head down and work hard, all that ‘bad stuff’ will only happen to the lazy, unprepared tradies, right?


Accidents and hardships can happen to anyone, and you should protect yourself accordingly. As a tradie, your tools can mean everything, so in this blog, Skills Certified discuss tool insurance and why you need it.

What is Tool Insurance?

By taking out tool insurance, you will have protection for all of your tools and work-related equipment if they are stolen, lost or damaged. It is an incredibly important preventative measure that will save you money on replacements or repairs, as well as any forced time away from work.

Before you agree to any policy, ensure that you are intimately familiar with all of the conditions involved, as tool insurance doesn’t always protect you against every unfortunate instance that can befall your equipment. For example, you will be covered if your tools are stolen from your home, a locked box or vehicle, but not if you have been proven to leave them lying about in the street for anyone to take. Negligence and similar acts will render your claim invalid, so take care and read the fine print!

Protect Cash Flow

Seasoned tradies – having worked on multiple worksites over many years – acquire an arsenal of tools that, if all tallied up, would likely surprise them with their total value. They are investments worth insuring; if not simply to recover money already outlaid, but also to protect money earning capabilities moving forward. Without available access to appropriate tools for certain tasks, you might be forced to extend or forfeit jobs until you repair or replace them, greatly affecting your cash flow potential. By insuring your equipment, you can expedite this process without having to fork out any of your own money.

Shop Around!

Australia is built on the back of hardworking tradies (and their tools), so financial institutions across the country are scrambling to offer them insurance deals butbe sure to shop around. As mentioned above, there are varying coverage options available, some with price limits, strict conditions in which you make a claim, or blurred distinctions between replacement and existing costs. If you are confused about what is best for your business, consult with an insurance broker to find a policy that will provide the greatest benefit.

If you are looking for insurance for your tools or want to check to see how competitive your current insurance is then have a look at https://www.traderisk.com.au/tool-insurance today.

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