The Ultimate Guide to Devices Insurance for Tradies: Coverage, Claims, and Costs

Tradies everywhere know the sinking feeling of tool theft. This worldwide phenomenon threatens hardworking individuals daily, as seen in these recent, harrowing stories:

In Notting Hill, Melbourne, a 61 year old tradie was brutally assaulted when confronting thieves attempting to steal $20,000 worth of tools. (source)
A plumber in Gardena lost his livelihood when criminals stole the contents of his work van, including $30,000 in essential equipment. (Source)
Two linked break-ins at a Peterborough warehouse left a devastating impact, with £700,000 worth of power tools vanished. (source)

These incidents are stark reminders of how vulnerable a tradie’s livelihood can be. Tools are the backbone of your profession, and their loss doesn’t just mean financial setbacks; it impact your ability to do your job. This is precisely why having the right tools insurance is a critical investment.

What Devices Do Tradies Consider Insuring?

Tool and equipment theft can be catastrophic, so it’s important to understand the various categories of items you might want insured:

Power tools: This is the bread and butter for most tradies. The power tool insurance covers drills, saws (circular, table, mitre, etc.), grinders, sanders, nail guns, and other power tools that are costly to replace if stolen.
Work tool insurance (could cover broader tools including personal tool insurance): Don’t forget the essentials! Hand tools like hammers, screwdrivers, wrenches, levels, and measuring tapes add up in cost. Safety equipment (hard hats, glasses, harnesses), as well as generators or compressors, also fall into this category.
Insurance for electronic devices: Modern tradies rely on communication and technology. Protect your smartphones, laptops, tablets, GPS trackers, and more specialised tools like surveying devices and infrared cameras.
Speciality equipment: If your trade utilises expensive or unique tools and equipment, tailor your insurance policy to cover these. This might include specialised machinery, surveying equipment, or custom-built items.

Click here to learn about protecting your tools from theft and damage first-hand.

Types of Device Insurance Coverage Available

Choosing the right tools and devices insurance is crucial. Here are some common types of coverage to consider:

Portable and Valuables Insurance: This policy is designed for items frequently used outside the home, and it covers loss, theft, or damage. If you have particularly expensive tools or equipment (over $2500), make sure you specify them individually on your policy for optimal coverage.

Example: Your high-end surveying device used on job sites would be perfect for this coverage.

Tool Insurance: Often included as part of your Public Liability insurance policy, this provides specialised coverage for tools. It’s particularly valuable for tradies who rely on a wide range of tools.

Example: This would cover your entire collection of power tools and hand tools used daily.

Accidental Damage: This is an additional form of protection, covering mishaps like drops, spills, or other unforeseen accidents that could damage your tools and equipment.

Example: A cracked screen on your work tablet or a drill damaged by a fall would likely be covered.

Theft from a locked vehicle: As tradies are often on the move, this coverage specifically addresses a common risk – tools stolen from a secure vehicle.

Example: Your locked van is broken into and tools are stolen. This type of policy may cover the replacement costs.

Thinking about getting tools and equipment insurance for business? Click here to get a free quote today.

Important Note: Insurance policies can vary between providers. Talk to an expert insurance broker about tailoring a plan that aligns with your specific needs and the valuable equipment you use.

The Claims Process

Making an insurance claim for stolen or damaged tools can be stressful, but understanding the process beforehand helps. Here’s what you need to know:

Documentation is Key: The more evidence you have, the smoother your claim will be. Keep receipts for your major tools, maintain an up-to-date tool inventory list, and take photos of any valuable equipment. These will be invaluable if you need to make a claim.
Police Reports: For claims involving theft, a police report is absolutely essential. File a report as soon as the theft occurs, even for seemingly minor incidents. Obtain a crime reference number as your insurer will require it.
Timelines: The claims process can vary between insurers, but there are general timelines to keep in mind. Contact your insurer as soon as possible. They’ll explain the steps involved, how long you have to submit paperwork and give you an estimate on how long the overall process might take.
Claim Excess: Most insurance policies have an excess (or deductible) – an amount you agree to pay out of pocket before the insurance coverage kicks in. Make sure you fully understand how your excess works so you’re not surprised in the event of a claim.

Contact the insurance broker or company as soon as something happens. They’ll guide you through the claims process and help ensure you’re providing the necessary information for a quick resolution.

Costs of Device Insurance

The cost of your tools insurance premiums will depend on several factors. Here’s a breakdown of what insurers consider:

Value of equipment: Insuring a higher value of tools and equipment will naturally increase your premiums.
Trade type: Some trades are considered higher risk than others due to the nature of the work and environments. This can be reflected in premiums.
Claim history: If you’ve made claims in the past, your premiums might be higher than someone who hasn’t.
Location: Where you operate can impact premiums – areas with higher crime rates might have slightly higher costs.

Bundling: Often, you can find significant savings by bundling your tool insurance with your Public Liability insurance policy. Ask your broker or insurer about potential discounts when combining these coverages.

Don’t let tool theft bring your work to a grinding halt. Protect your livelihood and get the peace of mind you deserve with comprehensive device insurance designed specifically for tradies. Tradies365 has your back, with personalised coverage options for your tools, vans, and essential equipment.

Get a fast, free quote today and experience the difference of insurance built for the way you work.

Note: The material offered here is for informational purposes only. It does not constitute legally binding advice and should not be a substitute for a consultation with an insurance expert.