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Are you Covered for That?: Tool Insurance for Tradespeople

According to CTV News, the Victoria police reported an increase in break-ins in the area this spring, at both commercial and residential locations, with thieves tending to take electronics, bikes, and tools.

For anyone who works in a trade, tools are an essential part of your livelihood. Without them, much of your job could not be done. So what happens if your tools are stolen?

We have said before that every business and independent contractor should have commercial general liability (CGL) insurance, which covers defense and settlement costs if you are liable for bodily injury or property damage. These liability policies, however, provide coverage for your actions, not your tools and equipment.

Whether you work for yourself all the time, or do some side jobs on weekends, contractors should purchase a package insurance policy to cover their tools in addition to their liability.  With coverage in place for your tools, you will be reimbursed to replace them should they be destroyed in a fire or stolen, so you can keep working.

Commercial package insurance policies for contractors automatically include some coverage (often $10,000 – $15,000) for tools and equipment (such as excavators), but you can increase the limit of insurance should you need more coverage.

To ensure you have adequate coverage, complete an inventory of all your tools and equipment, and review your policy closely with your commercial insurance broker.

To help prevent your tools from being stolen, take them with you when you leave the jobsite, lock them up somewhere safe, and keep them hidden.