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.

Below, tool insurance for tradies is set out trade by trade, with each trade's higher-value kit. Later sections explain how theft from a ute or van is commonly treated and what proof of ownership may support a claim.

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 tools 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 a tools of trade policy, flood cover for damage by water from natural sources, such as rivers or lakes, is often optional.

Tradies with a workshop or yard sometimes arrange a business pack. A business pack bundles several covers into one policy, such as property, theft and public and products liability.

Some business packs offer portable equipment cover as an option. Portable equipment cover is designed to cover equipment you take away from your premises against insured loss or damage. An example is tools used at a client's location.

Where the equipment is covered, and the limits, vary between policies.

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

Tools stolen from a securely locked ute or van may be covered where the thief forced entry, subject to the policy terms. Under the securely locked vehicle requirement, insurers usually need visible evidence of forced entry before they accept a theft claim. If you leave the vehicle unlocked, theft cover under the tools of trade policy may be void.

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 responds to theft from a site shed varies between policy wordings, so always check with your broker or the team at upcover.

What is the difference between specified and unspecified tools?

Specified tools are individually listed and valued tools, insured for the replacement amount shown in the policy schedule.

Unspecified tools are smaller, commonly used 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, a reduction applied to claim payments, may be applied based on the age and wear of the tools.

How does tool insurance for tradies 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.

Tools of trade cover sits alongside the other policies set out in what insurance electricians need.

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. For the cost of the liability side of a plumbing business, see how much plumber insurance costs.

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 and what each tool is used for.

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.

Our guide to carpenter insurance sets out the other policies carpenters commonly arrange.

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. 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.

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 and public liability policies each carry their own exclusions, and your own stolen tools generally sit with tools of trade insurance.

Tools of trade exclusions

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
• theft from a vehicle left unlocked

Important: This list is not exhaustive. Exclusions vary between insurers. Always refer to the policy wording and its terms and conditions for the exclusions that apply to you.

Public liability exclusions

Public liability insurance is designed to cover claims that someone was injured or their property was damaged in connection with your business.

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 solely because of a contract

Important: This list is not exhaustive. Exclusions vary between insurers. Always refer to the policy wording and its terms and conditions for the exclusions that apply to you.

What proof of ownership 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 hypothetical 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: Claims scenarios are hypothetical examples only. Cover is always subject to policy terms, conditions and exclusions. Policy wordings may also vary between insurers. Always refer to the policy wording and its terms and conditions for details.

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
• Certificate of currency available once your policy is confirmed

Get a tools of trade insurance quote.

Frequently asked questions

Does tool insurance for tradies cover accidental damage?

Tool insurance for tradies 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 tradies tools insurance cover theft from a ute overnight?

Tradies tools insurance may respond to theft from a securely locked ute overnight where there is evidence of forced entry, subject to the policy terms. Theft from an unlocked ute or an open tray is 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. 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 a tool insurance 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 entry was forced, subject to the policy terms. Theft from the open air, or theft without forced entry, is commonly excluded.

What counts as proof of ownership for tools?

Proof of ownership for tools commonly includes receipts, invoices or bank statements, plus photos, serial numbers and model numbers. Insurers may also ask for evidence of the theft, such as a police report or event number and photos of the forced entry.

Are apprentices' or employees' tools covered?

Whether a tools of trade policy responds to tools owned by apprentices or employees varies between policy wordings. An upcover representative or a broker can talk through how a policy treats tools your workers own.

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_{The information in this article is general information only and does not take into account your objectives, financial situation or needs. Theft conditions, per-item caps and optional sections such as flood or portable equipment cover vary between insurers and policy wordings. Before deciding whether a product is right for you, read the policy wording and its terms and conditions. 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. upcover arranges insurance products with selected insurers and underwriters and does not compare all general insurers or insurance products available in the market.}