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Tool Insurance

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Frequently asked questions about tool insurance

Tool insurance is one of the most common types of insurance policies sought by businesses. The importance of this coverage has led to an array of questions. We’ve compiled some of the most common and answered them in depth for your benefit.

Tool Insurance NZ Requirements and Coverages

Types of Coverage

Tool insurance primarily covers repair or replacement costs of tools and equipment that get damaged, stolen, or lost. It typically includes hand tools, power tools, electronic equipment and more significant pieces of machinery.

Limitations and Exclusions

However, not all instances of loss or damage are covered. For example, general wear and tear, damage due to negligence, or losses due to theft or burglary may not be covered. Insurers have began to introduce more and more exclusions due to the number of losses they are experiencing. It pays to check the fine print. 

Premium Factors

Several factors determine the cost of your tool insurance premium. These include the type and value of the tools, the location and security of your premises, your claim history, and more.

Tool Insurance in New Zealand

Uniqueness of Tool Insurance in New Zealand

Tool insurance in New Zealand has certain unique characteristics. Unlike other countries where tool insurance may be considered an optional expense, the relatively higher theft rate in certain regions of New Zealand makes this policy almost a necessity for businesses.

Who Needs Tool Insurance in New Zealand?

Not all businesses are legally obliged to have tool insurance, but those that deal with expensive or essential equipment should seriously consider it. It becomes particularly crucial for tradespeople whose livelihood depends on their tools.

How to Buy Tool Insurance with Gerrards

How Long Does It Take to Buy Tool Insurance Through Us?

Acquiring tool insurance with Gerrards is a straightforward process. We pride ourselves in turning around multiple quotes from top insurers within 24 hours. Our team is also at hand to advise you on the coverage limits and best fits for your business.

Tool Insurance Certificate

Once you settle on the right coverage, we issue a certificate of insurance, serving as proof of your insurance and detailing the terms of your policy.

Industries Covered

Gerrards can provide tool insurance for any industry. Whether you’re a builder, plumber, electrician, or operate in any other trade, we’ve got you covered.

Coverage Amount

Determining how much tool insurance you need can be challenging. Our team is on standby to help you assess your business needs and make an informed decision.

Tool insurance claims

Should you need to make a tool insurance claim, Gerrards will guide you through the process. We handle communication with the insurance company on your behalf, advocating for you every step of the way.

Common Tool Claims

John, an electrician, was working late on a project in a remote location. Despite parking his van in a well-lit area and securely locking it, thieves broke in and stole his expensive equipment. His tool insurance coverage helped him replace the stolen tools quickly, minimizing downtime in his business operations.

Emma, a freelance photographer, was covering an outdoor event when an unexpected gust of wind knocked over her high-end camera, damaging it beyond repair. Her tool insurance policy covered the replacement cost, saving her thousands of dollars and allowing her to continue her work without major disruption.

Mike, who owns a gardening business, was moving his equipment to a new worksite when one of his machines fell off the truck on a busy highway, causing irreparable damage. His tool insurance policy covered the loss, enabling him to continue providing services without significant financial strain.

Sarah, a woodworker, lost her entire collection of hand tools and power equipment in a workshop fire. It was a devastating loss, but her tool insurance policy covered the replacement cost, helping her rebuild her business from the ashes.

David, a builder, had been working on a residential construction site. After wrapping up for the day, he stored his tools in a secured onsite container. Unfortunately, overnight, thieves broke into the container and stole his equipment. Thankfully, David’s tool insurance coverage stepped in, replacing the stolen items and enabling him to get back to work promptly.

Tool insurance policy changes

What happens if I need to change my tool insurance later?

Life changes, and so do businesses. If you need to adjust your coverage, contact us, and we’ll guide you through the process.

What happens if I cancel my tool policy?

Cancellation might result in short-term financial savings. However, in the event of an unexpected incident, you risk potentially significant out-of-pocket expenses and business disruptions.

Comparing tool insurance with other policies

Tool Insurance vs Material Damage

These policies are often the same, covering the costs associated with repair or replacement of your business tools or equipment.

Tool Insurance vs Vehicle Insurance

While both provide coverage for assets, vehicle insurance is specifically designed to cover losses related to motor vehicles, while tool insurance covers your business tools.

Tool Insurance vs Public Liability 

Public liability insurance provides coverage for damages your business might cause to third parties, while tool insurance focuses on protecting your tools and equipment from loss or damage.

Do you have further questions about tool insurance nz?

We hope this guide has shed light on the intricacies of tool insurance in New Zealand. However, we understand that every business is unique, and you might still have questions specific to your situation. At Gerrards Insurance Brokers, we’re here to help. If you have any further queries about tool insurance, or any other insurance need, please don’t hesitate to contact us. Our team of experienced professionals is always ready to provide personalised advice and solutions tailored to your business. 

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