Having your tools stolen is an absolute nightmare as a tradie. It’s not just a matter of losing your tools and spending money to replace them. You also lose precious time… something you can’t afford to waste if you’re on a tight deadline and an even tighter budget. It’s vital for you to think how you can cover yourself in case your tools get stolen. The solution? Consider getting an insurance for your tools.

Tools insurance aren’t uncommon and it’s being endorsed by a lot of experts, but some tradies would often put it aside because they think it’s an additional expense their businesses can forgo until they are financially sound. That mindset can become a disastrous mistake since there are many factors you can’t control. Unless you’re a genuine psychic, you can’t foresee if you’ll lose your tools in an accident or if they’ll be filched off straight from your ute.

Unfortunately, it’s quite common.

The statistics aren’t encouraging, and even without the numbers, you probably already know a couple of tradies who’ve had their tools stolen, or have experienced it yourself before. Year after year, authorities see a rise in reported tools thefts. They are often snapped up from unattended vehicles and even job sites! There are security measures you can and must take (bolts and locks, security cams for example), but if your tools are insured, you’ll sleep better knowing you won’t have to spend most of your savings trying to replace them if worst comes to worst.

What will the Tool Insurance cover?

There’s no insurance policy that will be able to cover any and all circumstances, keep that mind. Generally, tools will be covered if there is evidence of forced entry. If you left your tools lying around the job site for thieves to simply pick up, there’s a big chance your claim will be denied.

Most policies also stipulate that if the value of your tools exceeds a certain amount, it has to be declared in your policy. Failure to do so means you’ll only be paid the maximum coverage per item even if the value exceeds that amount.

Get all the facts. Since no two insurers are alike, read your policy thoroughly so you’ll know what’s covered and what’s not. Check if you can make a claim if you’ll lose your tools due to accidents, if your stocks are included in your coverage, and what’s are the limits to your claim.

 You’ve already got Tool Insurance. What now?

Good job for taking interest in protecting your assets proactively. The next step is to make sure you’re meeting the terms of your policy so that in case you’ll need to make a claim, there won’t be any snags to delay you.

Here are some basic tips to consider:

• Keep your tools secured. I can’t highlight this enough. If your tools are usually in your ute or shop, be sure they are bolted down or there are solid locks to keep them inside. Good security costs money, but it’s an investment you shouldn’t pass up because this means less opportunity for thieves to take advantage of.
• Keep a record of all your tools. If you’re going to make a claim, your insurance company will ask for a list of your missing tools, plus evidence of ownership. Keep a copy of receipts as these are the best documents you can attach as support, but you can ask your insurer if they’d accept packaging and manuals. In your record, also list down your tools’ serial numbers and models when available.
• ID your tools. This is still being debated upon by some tradies because engraving or marking your tool can void its warranty. Check with the manufacturer first and if it’s not a problem, go ahead and engrave the tools to identify it as yours. This will increase your chances of recovering your gears in case the Police will find them.

Even with insurance, it can take a week or more for tradies to replace their equipment. Protect your business and income. Get insurance and secure your tools. Easy steps, yet would play a big impact on your work.

Protect your books as much as you protect your tools! Contact Tradie Bookkeeping Solutions now. With us looking after  your bookwork, you’ll have a thriving business minus the headache and stress.