Tool insurance

What is tool insurance?

Tools insurance can be a number of add-ons to your business insurance policy that cover you for the cost of replacing tools that you own, use or hire if they are lost, damaged or stolen. 

• Tools that you own: Our cover protects you for the cost of new for old replacements. That means that it doesn’t matter what condition your tools are in when you make a claim, you’re covered for the cost of purchasing new tools, up to the limit specified in your policy schedule.  
• Tools that you hire: Hired in plant insurance offers protection for tools and plant that you have hired. This can range from construction equipment to essential electronics and even stock in trade. 
• Tools left in your van: You’re covered for tools stored in a locked van during the day, on-the-job or overnight.   

Whatever the tools of your trade, we’ve got flexible, affordable cover you can use to replace them quickly.

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Who can get tool insurance?

Everyone has ‘tools’ they use to perform – whether you’re a business consultant with laptop, mobile devices and tablets to stay connected, a gardener with leaf-blower, rakes and forks, or a bricklayer with bucket, mixers and trowels. 

Tell us a bit about the work you do and add our tools/equipment cover to whichever core covers you have with us (public liability, employers’ liability, contents cover, professional indemnity insurance). 

What is covered by tool insurance?

What’s covered by tools insurance depends on whether you’re covering your own tools, or those that you have hired. You can take out one or both, depending on how you work. 

Own plant, tools and equipment cover 

This cover protects the tools and equipment you own against accidental loss, theft or damage and pays out at new-for-old replacement value. 

Covered equipment includes: 

• Constructional plant 
• Machinery 
• Trailers 
• Tools 
• Site huts or Caravans (including their contents) 
• Portable tools and equipment (including electronic communication and computing equipment) 

Stock in trade is also included, with cover up to £2,500. 

Please note: You are covered for accidental damage or theft, but you can’t make a claim based on “wear and tear” caused by routine usage or age. 

Hired-in plant cover

If you’re renting specialist gear, then a hired-in plant policy protects you if the equipment is damaged or destroyed in your care. We’ll provide cover for a variety of hired-in equipment, such as: 

• Constructional plant 
• Machinery 
• Tools and equipment 
• Site huts or caravans 

The policy also provides up to £25,000 for ongoing hired-in charges. This means you’re protected against the costs the hire company might lose if a claim occurs and they can’t do business, as well as the cost of recovering immobilised plant and equipment. 

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How does tool insurance work?

At AXA, you can choose the level of tools insurance cover you need from our fixed sums, starting at £1,500. If there comes a time when you need to make a claim, there are a few things that will help the process go more smoothly.  

• • Keep receipts: Keeping receipts for your tools and equipment helps us verify the value of an item quicker, meaning your claim is easier to process. 
  • Take photographs: When you buy a new item, take a clear photo to document the item’s condition. 
  • Create an inventory: Take note of the tool’s make, serial numbers and price. Not only does this help with claims, but it can help you see if you’re underinsured with your current policy.  
  • Store your policy information in a safe, easy-to-reach place: Consider storing the important information listed above in a secure but easy-to-access location and downloading your policy to your laptop or phone 

What else should I consider when buying tool insurance?

When you’re buying tools insurance there may be other factors to consider.

Excess details

Your excess is the amount you pay towards a claim. It's worth making sure your excess isn't higher than the cost of replacing the tool itself, otherwise you won't get the full value from your policy. 

With AXA, your excess is calculated at 10% of each claim, with a minimum of £250 and a maximum of £500. 

For example: If you claim for a £600 tool, your excess would be £60 — but the minimum applies, so you'd pay £250. Always factor this in when deciding whether to make a claim. Likewise, if your tool is valued at 2,500, then your excess would still be £250.  

Possible exclusions

Some policies come with certain exclusions, so be sure to always check your policy wording to be clear on what we do and don’t cover.  As with most insurance policies, for a claim to be accepted there must be signs of forced entry in cases of theft.

New for old replacements

Claims are paid at the replacement value for new like-for-like tools. Even if the tool you need to replace is old or worn, the policy covers you for the cost of buying a brand-new like-for-like product.   

Storage at home or in your vehicle

Due diligence must be exercised when it comes to the storage of your tools. As above, there must be signs of forced entry to your home, vehicle or anywhere else you store your insured items for a claim to be valid.

What other types of insurance can protect my business?

You can add tool insurance to any of the covers below.

* Not all occupations are eligible for £10 million coverage, the best way to find out which level of cover you are eligible for is to get a quote. Existing customers may want to consult their policy documents.