Quick summary
- Tools cover protects your business equipment against theft, loss (sometimes), and accidental damage.
- Cover often differs for tools in a vehicle vs at a secured premises — check conditions carefully.
- limits and total limits can be restrictive; schedule high-value items where needed.
- Hired-in plant and owned plant may need separate sections.
- Security requirements (locks, alarms, trackers) are a common cause of claim disputes.
Protecting business tools, plant and equipment against theft, loss and damage.
Tools and equipment are essential assets for many trades and small businesses — and theft or damage can stop you working immediately. Tools & equipment insurance (sometimes called contractors’ tools, plant insurance, or hired-in plant cover) helps cover repair or replacement costs.
This guide explains what tools cover typically includes, common exclusions, and how to make sure your equipment is properly protected.
What tools & equipment insurance covers
Tools cover is designed to reimburse you if your equipment is stolen, damaged, or sometimes lost, depending on the policy.
It can cover hand tools, power tools, specialist equipment, and sometimes mobile equipment like small plant.
- Theft (from premises or vehicles, subject to security conditions).
- Accidental damage (drops, impact, fire, water damage — subject to exclusions).
- Sometimes: vandalism or accidental loss (policy-dependent).
- Optional: hired-in plant (equipment you rent) and owned plant sections.
Vehicle theft conditions: the most common pitfall
Many trades keep tools in vans. Policies often require specific locks, alarms, or that tools are not left overnight in vehicles unless conditions are met. Claims can be declined if security requirements aren’t followed, even if you did not act recklessly. Always read the vehicle theft clause carefully.
- Check whether overnight vehicle storage is permitted and under what conditions.
- Confirm required locks (for example deadlocks) and alarm requirements.
- Understand where the vehicle must be parked (driveway, secure compound, locked garage).
Limits, item schedules, and proof of ownership
Tools policies often have limits (for example £1,000 per item) and total limits. High-value tools may need to be specified (listed) individually. Keep receipts, serial numbers, and photos. Evidence makes claims much smoother and supports correct valuation.
- Check singleitem limits and total cover limit are adequate.
- List high-value items separately if required.
- Maintain an inventory: make/model, serial numbers, purchase date, value.
Owned plant vs hired-in plant
If you own plant (like mini diggers or specialist machinery), you may need plant insurance that covers road risks, theft, and damage on sites.
If you hire equipment, hired-in plant cover can protect you your contractual responsibility to the hire company for loss or damage.
- Owned plant: check cover for transit, on-site use, and storage.
- Hired-in plant: check contractual liability and whether hire agreements impose specific requirements.
- Consider public liability interaction for third-party damage arising from plant use.
Choosing tools cover that fits your work
Start by estimating your total tool replacement cost and the most expensive single items. Then consider where tools are stored (van, workshop, client site) and how frequently they move. Compare cover on security terms and claims handling, not just premium.
- Match cover limit to realistic replacement cost, not just ‘what you think you have’.
- Check territorial cover: UK-only vs worldwide for travel.
- Review exclusions: unattended theft, wear and tear, gradual deterioration.
- Set excess at an affordable level.
Key takeaways
- Tools cover protects essential business equipment from theft and accidental damage.
- Vehicle theft clauses and security requirements are the biggest practical risk area.
- Check limits and single item caps; schedule high-value tools where required.
- Keep an inventory and evidence (receipts/serial numbers/photos).
- Consider separate cover for hired-in plant and owned plant if relevant.
Frequently asked questions
Are tools covered if stolen from my van?
Often yes, but only if security conditions are met (locks, forced entry evidence, overnight rules).
Does tools cover include wear and tear?
No. Insurance is for sudden events, not maintenance or gradual deterioration.
Do I need to list every tool?
Not always, but high-value items may need to be specified. Check single item limits.
What if I hire equipment?
Hired-in plant cover can protect against liability to the hire company for loss/damage. Check terms carefully.
How can I make claims easier?
Keep an inventory with serial numbers, photos, and receipts, and store backups securely.
Where to go next
- HSE on tools and equipment safety (external link, opens in new tab)
Anything missing from this guide? Let us know