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Shoud you get tool insurance?
Is tool insurance worthwhile?
Tool insurance is an investment that is highly recommended, particularly in New Zealand where tool thefts from vehicles are at an all-time high. With the average cost of tool insurance being 4% of the total value insured, it provides a safeguard for your tools and peace of mind for you.
Why is tool insurance crucial?
Increasing Tool Thefts
In New Zealand, there has been a noticeable spike in tool thefts, especially from vehicles. Thefts can occur at any time, and the back of a vehicle is often seen as an easy target for thieves.
High Replacement Costs
Tools are not cheap, and for many businesses, they are a significant investment. Replacing stolen tools out of pocket can be a financial strain, and in some cases, it may not be immediately possible, leading to downtime and lost income.
Peace of Mind
Having insurance for your tools provides peace of mind. Knowing that you are covered in the event of theft allows you to focus on your work rather than worrying about potential financial losses.
How does one go about getting tool insurance?
- Get a Quote: You can obtain a quote for tool insurance through Gerrards by using our online quote tool or by giving us a call.
- Evaluate Your Needs: Consider the total value of your tools and what level of cover you require. Ensure that you accurately assess the value to ensure adequate coverage.
- Read the Terms and Conditions: Make sure you understand the terms and conditions of the insurance policy, including any exclusions or limits to coverage.
What exactly can tool insurance cover?
- Theft/Burglary: Tool insurance typically covers the cost of replacing your tools if they are stolen, which is particularly pertinent given the current prevalence of tool theft in New Zealand.
- Damage: The insurance may also cover the repair or replacement of tools if they are damaged, ensuring that you are not left out of pocket.
- In-Transit Cover: For tools kept in the back of a vehicle, in-transit cover is crucial, and tool insurance can provide this, protecting your tools while they are on the move.
Disadvantages/Advantages of Tool Insurance
- Financial Security: Tool insurance provides financial security, ensuring that you can replace your tools without a significant financial burden.
- Quick Replacement: With insurance, you can replace your tools quickly, minimizing downtime and loss of income.
- Customizable Coverage: Tool insurance policies are often customizable, allowing you to choose the level of coverage that best suits your needs.
- Cost: While the cost of tool insurance is relatively low, it is still an additional expense.
- Policy Exclusions: There may be certain exclusions in the policy, meaning that not all circumstances of loss or damage are covered.
- Depreciation: The value of tools can depreciate over time, and this may be taken into account when a claim is made, potentially reducing the payout amount.
Common Misunderstandings
- ‘My tools aren’t that valuable, I don’t need insurance’: Even less expensive tools can add up in value, and replacing them out of pocket can be costly.
- ‘Tool insurance is too expensive’: Given that the average cost of tool insurance is just 4% of the total value insured, it is a small price to pay for the protection it offers.
- ‘My tools are old, they won’t be covered’: Tool insurance can cover tools of any age; however, the payout may take depreciation into account.
How Can Gerrards Help?
How can Gerrards, as a business insurance broker, assist you in finding the right tool insurance?
- Expert Advice: At Gerrards, we specialize in business insurance. Our team of experts can provide advice and help you find the right tool insurance policy for your needs.
- Easy Quote Process: You can get a quote for tool insurance easily through our online quote tool or by giving us a call.
- Support in the Event of a Claim: If you need to make a claim, Gerrards is here to support you through the process, ensuring that it is as smooth and stress-free as possible.
