Tools of trade insurance may help cover portable tools and equipment used for work if they are stolen, lost, or accidentally damaged, subject to policy terms. It is also called portable equipment insurance, general property insurance, or tool cover. For tradies, contractors, and mobile businesses, it can help reduce the cost of replacing tools needed to keep working.
Insurers use different names for the same concept: portable equipment insurance, general property insurance, tool cover, or tools of trade. Tools of trade insurance in Australia may be standalone or included as a section within a business pack. It is designed for tools used to earn income, not personal household items, and it may help with repair or replacement costs, but it does not automatically cover lost income or job delays.
Your personal car and home contents policies may not cover work tools used commercially or stored away from home. If your tools travel to job sites, specific tools of trade or portable equipment cover may be worth reviewing.
At a glance
- Tools of trade insurance may help cover portable work tools and equipment if they are stolen, lost, or damaged
- Also called portable equipment insurance, general property insurance, or tool cover
- May cover hand tools, power tools, laser levels, diagnostic gear, ladders, and portable equipment
- Cover may apply at job sites, in transit, in vehicles, at home, or at business premises, depending on policy
- Theft from vehicles usually requires security conditions such as locked doors, forced entry, and secured toolboxes, plus evidence of forced entry to support a claim
- High-value tools may need to be specified separately on the policy
- Commercial motor generally covers the vehicle, not the tools inside, unless tools cover is included
- Wear and tear, mechanical breakdown, and unsecured theft are commonly excluded
- upcover arranges tools of trade insurance for eligible Australian businesses.
Does your car or home insurance cover your work tools?
Car insurance may exclude tools used for business, especially tools stored overnight in a work vehicle. Personal car policies are designed for the vehicle, not for the commercial contents inside it. Check the Product Disclosure Statement before relying on car insurance for work tools.
Home and contents insurance may exclude items used commercially once they leave the insured home address. Work tools on a job site, in a ute, or in a site shed may not be covered by a domestic policy.
If your tools travel with you for work, personal car and home insurance may not be designed to cover them. Tools of trade or portable equipment cover is designed for this gap.
What does tools of trade insurance cover?
Covered items commonly include hand tools, power tools, specialist trade equipment (laser levels, diagnostic tools, plumbing cameras), portable tech (tablets, laptops, GPS units), ladders, safety gear, generators, and portable plants, depending on the policy. Stock, materials, or hired equipment may be treated differently.
Depending on insurer and policy wording, tools of trade insurance may cover:
- Theft from a locked vehicle. May be covered where policy security conditions are met, such as a securely locked vehicle with evidence of forced entry. For example, thieves force entry into your locked ute and steal your drill kit, laser level, and saw.
- Theft from locked premises. Tools stolen from a locked shed, garage, workshop, or building with evidence of forced entry.
- Accidental damage. You drop a diagnostic tool from a scaffold, or equipment is crushed on site during normal work.
- Fire and explosion. Tools destroyed in a site container fire, workshop fire, or explosion during the policy period.
- Vehicle collision or overturn. Your ute or van carrying tools is in a collision and the tools are damaged or destroyed. Tools in transit between job sites, suppliers, or workshops may also be covered for collision damage, depending on wording.
- Storm and weather damage. Tools damaged by storm, lightning, or other insured weather events while stored at an approved location. Flood cover may be treated differently by some insurers, so check the policy wording.
Are tools covered in your ute, van, or vehicle?
Whether tools stolen from a ute are covered is the most common question tradies ask about tools of trade insurance. Tools in a vehicle may be covered only if policy conditions are met. Common conditions include locking the vehicle, keeping tools out of sight, using a locked toolbox or canopy, and evidence of forced entry for theft claims. Tools on an open ute tray or in an unlocked vehicle are commonly excluded.
Overnight cover may have extra conditions. Some policies require tools to be stored in a locked building overnight, not just a locked vehicle. Others cover overnight theft from a locked vehicle with an alarm. Check the policy wording before assuming overnight vehicle storage is covered.
A commercial motor policy generally covers the vehicle. It may not cover the tools inside unless there is a specific tools, general property, or contents section.
What is the difference between specified and unspecified tools?
This distinction matters more than most tradies realise.
Unspecified tools are covered under a blanket total for all tools combined, with a per-item sub-limit. The blanket total and per-item sub-limit vary by insurer and policy. If a single tool costs more than the sub-limit, it may not be fully covered under the blanket.
Specified tools are high-value items individually listed on the policy with details such as make, model, serial number, and insured value. They may be covered up to their listed value, subject to policy terms. See specified tools of trade in the upcover glossary.
Settlement basis also matters. New-for-old replaces stolen or damaged items at current replacement cost. Indemnity applies depreciation, so a 3-year-old $2,000 power tool might settle at $800. Check which basis your policy uses before a claim, not after.
If any single tool is worth more than the sub-limit, ask whether it should be specified on the policy. Otherwise you are paying for cover that does not fully protect your most expensive equipment.
Which tool situations are covered and which are not?
| Scenario |
Covered? |
| Tools stolen from locked ute with visible forced entry |
May be covered, up to limits |
| Tools stolen from unlocked ute tray |
Usually excluded or limited |
| Tools left unattended on site without secure storage |
Usually excluded or limited |
| Tools damaged in vehicle collision |
May be covered |
| Tool dropped from scaffold and destroyed |
May be covered (accidental damage) |
| Tools destroyed in workshop fire |
May be covered |
| Drill stops working after years of use |
Usually excluded (wear and tear) |
| Tools go missing with no evidence of theft |
Usually excluded (mysterious disappearance) |
| High-value laser level stolen but not specified on policy |
May only be covered up to the applicable sub-limit |
| Hired or borrowed tools |
Depends on policy wording |
What does tools of trade insurance not usually cover?
- Theft without evidence of forced entry (unlocked vehicle, unsecured storage)
- Wear and tear, rust, corrosion, or gradual deterioration
- Mechanical, electronic, or electrical breakdown
- Mysterious disappearance (tools missing with no evidence of what happened)
- Items above the per-item sub-limit that are not specified on the policy
- Employee theft (unless specifically included)
- Tools left unattended in the open
- Insects, vermin, or mould damage
- Cosmetic damage such as glass scratching or marring
- Hired, leased, or borrowed equipment unless disclosed or included
- Loss of income or job delays (unless separately covered)
Who needs tools of trade insurance?
Any business that moves portable tools or equipment between locations may have exposure. Common trades include:
- Carpenters (saws, nail guns, routers, planers). See the carpenter tools guide.
- Electricians (testers, multimeters, wire strippers, power tools)
- Plumbers (pipe cutters, soldering gear, cameras, drain equipment)
- Builders (power tools, laser levels, site equipment)
- Handymen (mixed tool kits across trades). See the handyman tools guide.
- Painters, landscapers, and concreters
- Mobile mechanics (diagnostic gear, jacks, compressors)
- Photographers, IT technicians, and allied health providers with portable equipment
The need is not only about being a tradie. If you move business equipment between locations, portable equipment cover may be relevant.
How do tools of trade insurance work with other covers?
Many tradies access tools cover as a section within a business pack, alongside public liability, products liability, and sometimes commercial motor. Standalone tools cover is also available. A business pack may include general property or tools cover, but it is not automatic. Check whether your pack includes it.
The boundaries between covers are worth understanding:
- Tools of trade insurance: may cover portable equipment against loss, theft, and damage
- Public liability: covers third-party injury or property damage from your business activities. It does not replace your stolen tools.
- Commercial motor: covers the vehicle. It does not usually cover the tools inside unless a tools or general property section is included.
If a client trips over your tools on site, that is public liability. If someone steals your tools from a locked ute, that is tools of trade. If your ute is in a collision, the vehicle damage is a commercial motor, but the tools inside may need separate tools of trade cover.
How much does tools of trade insurance cost?
| Factor |
How it affects cost |
| Total value of tools |
Higher value means higher premium |
| Specified vs unspecified items |
Specifying high-value items changes pricing |
| Trade and occupation |
Some trades have higher theft or damage profiles |
| Location |
High-theft urban areas may cost more |
| Storage and security |
Locked garage overnight may reduce premium |
| Claims history |
Prior claims can increase pricing |
| Excess level |
Higher excess reduces premium |
| Standalone vs business pack |
Bundled may be more cost-effective |
A tradie with a small hand-tool kit will usually be priced differently from a contractor carrying high-value testing equipment, laser levels, or specialist gear. The most accurate way to check cost is to compare quotes using your actual tool values, specified items, and storage details.
How do you protect your tools and prepare for a claim?
Documentation matters at claim time. Photograph every tool, especially high-value items. Record serial numbers and model numbers. Keep purchase receipts or invoices. Update the list annually as your kit grows. Store documentation off-site in cloud storage, email, or a photo album. If theft occurs, photograph the scene (broken locks, forced entry damage) before touching anything. Report theft to police promptly and keep any event number. Then notify the insurer or broker before replacing items, unless urgent.
Reducing theft risk helps too. Lock tools in a secured toolbox or canopy, not on open ute trays. Bolt toolboxes to ute trays with heavy locks. Engrave or mark tools with your name and licence number. Use GPS or Bluetooth trackers on high-value items. Park in secure, well-lit locations overnight.
What do you need for tools of trade insurance quote?
You are usually asked for your ABN, trade, total value of tools, list of specified items, where tools are kept overnight, security details, claims history, preferred limit and excess, and whether you also need public liability, commercial motor, or a business pack.
How upcover can help
upcover arranges tools of trade insurance for eligible Australian businesses with selected insurers and underwriters. Depending on insurer and policy wording, cover may help repair or replace portable tools and equipment used for work if they are stolen, lost, or damaged.
- 70,000+ businesses covered across Australia.
- 4.9/5 customer rating.
- 80+ insurance partners.
For related guides, see what is business pack insurance, and trades and construction insurance.
upcover Pty Ltd ABN 17 628 197 437 is a Corporate Authorised Representative (CAR 1299211) of Experience Insurance Services Pty Ltd ABN 41 657 596 506, AFSL 539078.
Frequently asked questions
What is tools of trade insurance?
Tools of trade insurance may help cover portable tools and equipment used for work if they are stolen, lost, or damaged, subject to policy terms. It is also called portable equipment insurance or general property insurance.
Does car insurance cover my work tools?
Usually not. Personal car policies typically exclude tools used for business, especially tools stored overnight in a work vehicle. Check your PDS.
Does home insurance cover my work tools?
Usually not. Home and contents policies typically exclude items used commercially once they leave the home address.
Are tools covered if stolen from my ute overnight?
It depends on the policy. Many policies require the vehicle to be locked, with evidence of forced entry. Some policies have extra conditions for overnight vehicle storage. Check the wording before assuming overnight cover applies.
Do I need to list every tool on the policy?
Not always. Smaller tools may be covered under an unspecified blanket limit. Higher-value tools above the per-item sub-limit should be specified separately to be fully covered.
What is the difference between specified and unspecified tools?
Unspecified tools are covered under a blanket total with a per-item sub-limit. Specified tools are individually listed on the policy by name, make, model, and value, and are covered up to their stated amount.
What is new-for-old vs indemnity settlement?
New-for-old replaces stolen or damaged items at current replacement cost. Indemnity applies depreciation, so an older tool may settle at less than what it costs to buy new. Check which basis your policy uses.
Does tools insurance cover hired or borrowed tools?
It depends on the policy wording. Some policies cover hired or borrowed tools if disclosed. Others exclude them. Check before assuming cover applies.
How much does tools of trade insurance cost?
Tools of trade insurance cost depends on your trade, total tool value, specified items, storage, security, location, claims history, selected limit, and excess. The most accurate way to check cost is to compare quotes using your actual tool list and storage details.
How do I make a tools insurance claim?
Report theft to police and get an event number. Photograph the scene and any damage. List stolen or damaged items with values. Gather receipts, serial numbers, and photos. Notify the insurer or broker promptly.
The information in this article is general in nature and provided for informational purposes only. It does not constitute personal insurance, financial, or legal advice. Cover types, inclusions, exclusions, and policy structure vary between insurers and policies. Always read the relevant Product Disclosure Statement before purchasing. All insurance products arranged through upcover are subject to the terms, conditions, limits and exclusions in the relevant PDS. Before deciding whether a product is right for you, consider your circumstances. upcover Pty Ltd ABN 17 628 197 437, CAR 1299211 of Experience Insurance Services Pty Ltd ABN 41 657 596 506, AFSL 539078.
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