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Do You Need Tools Insurance If You’re Self‑Employed or a Sole Trader?

building contractor with his tools

If you are a self‑employed professional or sole trader, your tools and equipment often represent your livelihood. Whether you are a builder, electrician, hair stylist, engineer or tradesperson, working without essential tools due to theft, damage or loss could cause major delays and financial stress. This is where tools and equipment insurance can play a vital role in helping to keep your business running smoothly.

What Is Tools and Equipment Insurance?

Tools and equipment insurance is a type of business protection designed to help cover the cost of replacing or repairing essential work tools in the event of accidental damage, theft, fire, vandalism or other covered incidents. This cover may apply whether you own the tools or hire them for specific projects.

As brokers, we help arrange access to policies that support self‑employed workers and sole traders across a wide range of industries, including:

Why Might Sole Traders and Self‑Employed Workers Need It?

Unlike larger businesses, sole traders often rely entirely on their own equipment. A stolen power drill, broken laptop, or damaged toolkit could stop work immediately. Even a short delay could lead to missed deadlines, unhappy clients, and lost income.

Tools insurance can offer peace of mind by helping to reduce the financial burden of replacing key equipment. While it may not be legally required, many clients and contractors expect sole traders to have suitable insurance in place.

If you operate in public spaces, move between sites, or leave tools in a van overnight, the risk of theft or loss could be higher. A policy tailored to your working habits can help ensure appropriate protection is in place.

What Could Be Covered by Tools Insurance?

Depending on the insurer and policy selected, tools insurance for self‑employed professionals may include cover for:

  • Hand tools and power tools
  • Portable equipment, such as laptops, mobile phones or diagnostic tools

  • Plant and machinery, either owned or hired

  • Toolboxes and storage containers
  • Tools kept in vehicles, provided security conditions are met

  • Tools stored at home or at customer premises

It is important to check the policy wording carefully. Some policies may require tools to be stored securely, especially outside working hours. Additional cover may be available for overnight van storage or for tools used in hazardous environments.

What to Consider When Choosing a Policy

To help ensure comprehensive protection, self‑employed workers and sole traders should look for tools insurance that aligns with their day-to-day activities. Points to consider include:

  • Level of cover: Are your most valuable tools insured to their full replacement value?

  • Excess and limits: What is the excess per claim, and are any items excluded?

  • Security requirements: Are there conditions around locks, alarms or vehicle storage?

  • Policy scope: Does it cover tools in transit, on-site, and at home or business premises?

We help match individuals with policies from a wide range of insurers, supporting custom cover that suits different trades, budgets and work patterns.

Could Tools Insurance Be Combined with Other Covers?

Many self‑employed workers bundle tools cover with other essential protections such as public liability insurance, professional indemnity, or personal accident cover. These combinations are often available under a commercial combined policy, helping to simplify protection and streamline administration.