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Tool Insurance

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How much does tool insurance cost?

The cost of tool insurance in New Zealand typically averages between 4% to 5% of the value of the tools insured per year. This cost can vary widely depending on the type of business, type of tools, location and sum insured. 

What is the average cost of tool insurance? 

In New Zealand, you can generally expect to pay between 4% to 5% of the value of tools insured per year. That means to insure $20,000 of tools, it would cost approximately $80 a month.

While this is a relatively accurate average, it’s important to remember that specific industries where tools are more highly targeted such as builders will carry higher premiums than lower risk industries such as painters.

Understanding tool insurance cost factors

What influences the cost of tool insurance? Several variables can impact the premium you’re quoted, lets look at the crucial factors.

The Value of Your Tools

Your insurance cost is a percentage of the total value of your tools. So, if you have expensive, high-end tools, your insurance cost will be higher.

Your Industry and Its Risks

Certain industries pose more risks to tools than others. For instance, if you are a builder working on construction sites, the risk of tool theft or damage may be higher compared to if you are a glazier using very industry specific which are less saleable. Therefore, the nature of your business and its inherent risks greatly influence your tool insurance cost.

Your Claims History

If you’ve had a history of insurance claims in the past, insurers may see you as a higher risk. This could potentially lead to higher premiums.

Tool Insurance Provides Cost-Effective Protection for Your Business

Understanding the cost of tool insurance is important, but it’s also crucial to know the benefits it offers to your business.

Covers the Cost of Replacement or Repair

In the event of theft, loss, or damage, tool insurance will cover the cost to replace or repair your tools, saving you from significant out-of-pocket expenses.

Keeps Your Business Running

If your tools are stolen or damaged, it can halt your business operations. With tool insurance, you can quickly replace your tools and keep your business running smoothly.

Offers Peace of Mind

Knowing that you’re covered in case of unexpected events can give you the peace of mind to focus on what you do best – running your business.

It’s crucial to have tool coverage if you

  • Rely heavily on tools for your work
  • Have high-value tools
  • Operate in high-risk industries
  • Can’t afford sudden tool replacement costs

How can you save money on tool insurance?

Even though tool insurance is an essential part of running a business, it’s still possible to save money on it. Here are four effective ways to reduce the cost:

Use a Broker

Brokers like Gerrards have access to many insurance providers and markets that businesses do not have access to. This wide network allows us to compare many different offers and choose the one that gives you the best coverage for the least amount of money. Think of us as your secret weapon for getting the best insurance deals.

Bundle Your Policies

Insurance providers often offer discounts if you purchase multiple policies from them. This method, known as bundling, could allow you to combine your tool insurance with other types of business insurance, such as liability or vehicle insurance, and save money.

Increase Your Excess

The excess is the amount you agree to pay out-of-pocket before your insurance kicks in. By agreeing to a higher deductible, you can reduce your premium. However, it’s crucial to ensure you can afford the deductible if you need to make a claim.

Maintain a Clean Claims Record

Taking diligent care of your tools and reducing the likelihood of claims can potentially lower your premiums. Ensure your tools are secured properly and that regular maintenance checks are conducted to prevent unnecessary damage.

Top professions that need tool insurance

In New Zealand, tool insurance can provide comprehensive and cost effective protection for many professions.

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