Tool insurance for tradies: electricians, plumbers, carpenters, handymen and tilers

Tool insurance for tradies usually means tools of trade insurance. Tools of trade insurance is designed to cover the tools and equipment you use for work, against theft and accidental damage, depending on the policy.

Cover depends on the policy and insurer you choose. Check the policy wording and its terms and conditions for what is and isn't included.

For the basics, including how insurers settle claims and what affects the cost, see our guide to what tools of trade insurance is.

What does tool insurance for tradies cover?

A tool of trade policy may respond when your work tools are stolen or accidentally damaged, subject to the policy terms, conditions and exclusions.

Insured events may include fire, flood, theft or vehicle collision while tools are stored, transported or used for work. Under the tools of trade policy, flood cover for damage by water from natural sources, such as rivers or lakes, is often optional.

Are tools covered if they are stolen from a ute or van?

Tools stolen from a ute or van may be covered where the vehicle was securely locked and the thief forced entry. upcover's tools of trade page says tradie tools insurance "may apply when tools are stolen after forcible entry into your securely locked vehicle, with visible damage showing entry and the item within your limits."

Under the securely locked vehicle requirement, theft cover under the tools of trade policy may be void if you leave the vehicle unlocked. Theft from the open air is commonly excluded under tools of trade policies. Examples include tools left on a work site, a driveway or a truck tray overnight.

Whether a policy covers tools in a site shed varies between policy wordings, so always check with your insurance broker or the team at upcover.

What is the difference between specified and unspecified tools?

Specified tools are "individually listed and valued tools that are insured for their specific replacement amount as shown in the policy schedule".

Unspecified tools are lower-value tools insured together up to a total limit, typically with a per-item cap. A single tool worth more than that cap may not be fully covered as an unspecified item. Insurers may require items over a certain value to be listed with their value, as specified tools.

For unspecified tools, depreciation is "a reduction applied to claim payments", based on the age and condition of tools insured as a group.

How does tool insurance differ by trade?

The tools at risk differ from trade to trade, and so do the higher-value items an insurer may ask you to list on the policy.

Tool insurance for electricians

An electrician's kit may include multimeters, multifunction testers, cable testers, thermal cameras, crimpers, drills, impact drivers, conduit benders and ladders. An insurer may ask for higher-value test gear, such as a multifunction tester or thermal camera, to be listed with its value.

Tool insurance for plumbers

Plumbers often carry drain cameras, pipe locators, press tools, pressure testing equipment, pipe cutters, drills, grinders and pumps. A drain camera, pipe locator or press tool may be worth more than the per-item cap for unspecified tools. An insurer may ask for these items to be listed individually on the policy schedule.

Specialist gear often stays in the van between jobs, including while you work inside a client's home.

Tool insurance for carpenters

A carpenter's kit may include circular saws, mitre saws, nail guns, routers, planers, compressors, sanders, levels and clamps, plus batteries and chargers. Our guide to carpentry tools lists the core kit.

An insurer may ask for laser levels, mitre saws and compressors to be listed individually on the policy schedule. The rest of the kit may sit in the unspecified group. A kit this size also means a long list to keep as proof of ownership.

Tool insurance for handymen

A handyman's kit is often broad and mixed: drills, impact drivers, circular saws, jigsaws, multi-tools, levels, hand tools and ladders (essential handyman tools). Many of these items are lower in value. You can compare the total limit for unspecified tools with the replacement value of the whole kit.

upcover's handyman insurance page sets out other cover options for handymen.

Tool insurance for tilers

Tilers often carry wet saws, tile cutters, angle grinders, mixing drills and paddles, laser levels and levelling systems. An insurer may ask for wet saws, tile cutters and laser levels to be listed as specified tools.

What do tools of trade and public liability policies commonly exclude?

Tools of trade exclusions commonly include, but are not limited to:

• wear and tear, machinery breakdown and maintenance or adjustment issues, such as an impact driver whose motor wears out after years of hard use
• damage to an electrical device from a power surge, such as chargers and a laser level plugged into a site generator
• theft in the open air, or theft without forced entry evidenced by damage, such as tools left behind temporary fencing overnight

Public liability insurance is designed to cover claims that someone was injured or their property was damaged in connection with your business. Public liability insurance is designed for claims from other people, so your own stolen tools generally sit with tools of trade insurance.

Public liability exclusions commonly include, but are not limited to:

• liability arising from using a registered motor vehicle
• the cost to redo, correct or improve your own work or fix defects, although the policy may respond to resulting damage to someone else's property
• claims from professional advice or services for a fee
• liability you take on only because of a contract (contractual liability exclusion)

Important: These lists are not exhaustive. Exclusions vary between insurers. Always refer to the policy wording and its terms and conditions for the exclusions that apply to you, and if you have questions you should speak to your insurance broker or the upcover team.

What proof helps if your tools are stolen?

Proof of ownership and evidence of the theft may help support a tool theft claim. upcover's glossary notes that claims for unspecified tools "require evidence of the insured event and proof of ownership".

Records that may help include:

• receipts, invoices or bank statements for your tools
• photos of your tools taken before the loss
• serial numbers and model numbers
• a list of the stolen or damaged items with their values
• photos of the forced entry, such as pry marks or a damaged lock
• a police report or event number for the theft

What do tool theft claims look like?

The claims examples below come from upcover's pages for electricians, plumbers, carpenters and tilers. Each one is a claim on the business's own tools of trade policy, not a claim made against the business.

_{Important: These claims are examples only. Cover is subject to policy terms, conditions and exclusions. Policy wordings vary between insurers. Always refer to the policy wording and its terms and conditions for details. If you have questions about a particular possible claim or would like assistance about whether a certain claim might be covered it is always best to speak to an upcover team member or your insurance broker.}

If you're concerned about a particular customer service or experience, you can always consider telling your insurer as soon as you become aware of an incident, complaint or circumstance that could lead to a claim. You don't need to wait for a formal demand. Also keep in mind that notifying of a claim late may affect your claim.

You can start a claim through the make a claim page. Admitting liability, incurring costs or agreeing to a settlement before you notify your insurer may affect your claim. Starting a claim does not confirm that your claim is covered; your insurer assesses it under the policy terms, conditions, exclusions and limits.

How upcover can help

upcover arranges tools of trade and public liability insurance for electricians, plumbers, carpenters, handymen and tilers. upcover works with 80+ insurance partners and can arrange quotes from a range of insurers.

• 70,000+ businesses covered across Australia
• 4.9/5 customer rating
• 80+ insurance partners

Get a tool insurance quote.

Frequently asked questions

Does tool insurance for tradies cover accidental damage?

Tools of trade insurance may respond to accidental damage as well as theft, depending on the policy. Wear and tear, machinery breakdown and damage from a power surge are commonly excluded.

Does public liability cover stolen tools?

Public liability insurance is designed for claims from other people, such as injury to a person or damage to their property (third party cover). Your own stolen tools generally sit with tools of trade insurance, subject to the policy terms.

Does tool insurance cover drain cameras for plumbers?

A drain camera may be covered under the tools of trade policy, depending on the policy terms. Its value may be above the per-item cap for unspecified tools. An insurer may ask for it to be listed with its value as a specified tool.

Are tools covered if they are stolen from a job site?

Tools stolen from a securely locked vehicle or building at a job site may be covered where there is evidence of forced entry (tools of trade cover). Theft from the open air, or theft without forced entry, is commonly excluded under tools of trade policies (theft in open air exclusion). Examples include tools left on an open work site, a driveway or a truck tray overnight.

Are apprentices' or employees' tools covered?

Whether a tool of trade policy covers tools owned by apprentices or employees varies between policy wordings. An upcover team member or an insurance broker can talk through how a policy treats tools your workers own.

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_{Written by upcover's editorial team. This article provides general information only and does not take into account your objectives, financial situation or needs. Insurance availability and cover are subject to underwriting and the terms, conditions, limits and exclusions of the relevant policy. Read the policy wording and its terms and conditions before deciding. upcover arranges insurance products with selected insurers and underwriters and does not compare all general insurers or insurance products available in the market.}