Whether on a construction site, in a client’s home, or across multiple job locations, many professionals rely on expensive and essential equipment to keep their businesses running. Tools and equipment insurance is designed to help protect those assets against theft, loss, or accidental damage.

We explore what this type of cover typically includes, who could benefit from it, and why it may be a valuable addition to your business insurance portfolio.

What Is Tools and Equipment Insurance?

Tools and equipment insurance is a form of business cover that applies to physical items used to carry out your trade or profession. It may apply to handheld tools, power tools, and mobile equipment, and can often be extended to cover items both on and off-site.

This type of policy could protect against:

• Theft from a locked vehicle or site 
• Accidental damage during transit or usage 
• Loss due to fire, flood, or vandalism 
• Damage caused by a break-in or forced entry 

Some policies may include or allow optional extras such as overnight cover for tools stored in vans, or protection for hired equipment.

What Does Tools Insurance Typically Cover?

The scope of cover depends on the policy selected and the specific needs of your business. However, many tools and equipment insurance policies may include:

• Hand tools, such as saws, hammers, screwdrivers, and spanners 
• Power tools, including drills, grinders, and sanders 
• Specialist trade equipment, such as diagnostic devices or surveying tools 
• Portable electronics, like tablets or laptops used on-site 
• Hired-in tools, which may carry contractual responsibilities 

It is important to check whether your tools are covered only on the premises, or whether the policy includes use in transit or at client sites. Some providers may offer worldwide cover or UK-wide mobile use, depending on your operations.

Who Might Need Tools and Equipment Insurance?

This type of insurance could be useful for a wide range of trades and professions. These include:

• Builders, who carry tools across multiple sites 
• Electricians, working in residential or commercial environments 
• Plumbers, needing protection for equipment often stored in vehicles 
• Carpenters and joiners, whose power tools are critical for work 
• Mobile technicians, using diagnostic equipment at various locations 
• Gardeners and landscapers, with mowers, trimmers, and machinery 
• Hair and beauty professionals, who travel with kits or chairs 
• Freelancers, carrying cameras, lighting gear, or portable workstations 

If your business depends on equipment that is expensive to replace or critical to delivering services, tools and equipment insurance could provide useful protection against disruption.

Key Considerations When Choosing Cover

To help ensure your insurance aligns with your operational risks, it is worth considering:

• Where tools are stored overnight (e.g. van, lock-up, garage) 
• Whether you use hired or leased tools 
• The total value of your tools and whether this changes seasonally 
• If your tools are shared with subcontractors or staff 
• The need for fast replacement to avoid project delays 

We help arrange tools and equipment insurance through a range of providers, giving access to options tailored to your trade, location, and working habits.