Summary
For a tradesperson, your tools are your business. A van break-in that takes £8,000 of professional kit doesn't just cost £8,000 — it costs days off-site while you rebuild your kit, potentially weeks of customer rescheduling, and possibly a job you can't complete because you don't have the specialist tool to hand. Insurance against this is one of the cheapest forms of business continuity you can buy.
Most tradespeople under-insure because the headline premium feels expensive and the conditions feel unfair. Both perceptions are wrong. £200–£400 a year for £10,000 of cover is cheap relative to the loss it protects against, and the conditions (overnight removal, locked storage, serial numbers) are also good general security practice — implementing them reduces your real-world risk of being broken into in the first place.
This article covers what tools insurance does and doesn't cover, the typical conditions, the cost ranges, and how it interacts with public liability and van insurance policies.
Key Facts
- Standard cover — replacement value of tools owned by the policyholder, used for trade
- Typical cover levels — £2,000, £5,000, £10,000, £15,000 (some bespoke policies go higher)
- Typical annual premium — £80–£400 depending on cover level, claim history, and trade
- Standard excess — £100–£500 per claim (lower excesses = higher premium)
- Overnight removal clause — most policies require tools to be removed from the van overnight (between e.g. 6pm and 8am) unless stored in a locked compound or alarmed garage
- Locked compound exemption — some policies waive overnight removal if the van is parked in a locked, lit, CCTV-monitored compound
- Site theft cover — coverage when tools are stored on customer's site overnight — read the policy carefully; often capped lower or excluded
- Replacement basis — "new for old" (preferable) or "indemnity" (depreciated value)
- Single article limit — typically £1,000–£3,000 per individual tool; higher-value items (laser levels, theodolites, specialist test gear) need to be itemised
- Serial number requirement — most insurers require serial numbers logged for high-value items
- Hired-in tools — separately insurable rider; usually not included by default
- NOT covered — wear and tear, accidental damage (in most policies, unless rider added), tools belonging to customer/employee, tools left overnight in unattended vehicle
- Van insurance — separate policy; some "comprehensive plus" van policies include limited tools cover (typically only £500–£2,000, often inadequate)
Quick Reference Table
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Try squote free →| Cover level | Typical annual premium | Typical excess |
|---|---|---|
| £2,000 | £80–150 | £100–250 |
| £5,000 | £130–250 | £150–350 |
| £10,000 | £200–350 | £200–450 |
| £15,000 | £280–450 | £250–500 |
| £20,000+ | Bespoke | £500+ |
| Condition | Typical requirement |
|---|---|
| Overnight removal | Tools must be out of vehicle 6pm–8am (or stored in alarmed compound) |
| Locked compound | If used, vehicle must be in fenced, lit, CCTV-monitored area |
| Vehicle locked | Vehicle must be locked, alarm activated |
| Serial numbers | Logged for items > £500–£1,000 |
| Site storage | Locked container, alarmed where possible |
| Forced entry evidence | Visible signs of break-in required for claim |
Detailed Guidance
What "tools insurance" usually covers
A standard tools-in-transit / tools-on-site policy from a UK insurer covers:
- Theft from your locked van during the day (forced entry)
- Theft from your locked van overnight ONLY if conditions are met (compound, alarm)
- Theft from a locked site container or workshop
- Theft following a robbery (with force or threat of force)
- Fire and natural disaster damage to tools while in van, on site, or in storage
It usually does NOT cover:
- Accidental damage (unless you've paid for an accidental damage rider)
- Wear and tear or mechanical breakdown
- Loss (left somewhere)
- Theft from an unattended unlocked vehicle
- Theft when policy conditions weren't met (e.g. left in van overnight when overnight removal was required)
The overnight removal clause — the most common claim rejection reason
Most tools insurance policies in the UK require tools to be removed from your van overnight, typically between specified hours (often 6pm–8am or 7pm–7am). If you're broken into at 3am with £8,000 of tools in the van, the claim will almost certainly be rejected because the conditions weren't met.
Exceptions:
- The van is parked in a locked, lit, alarmed/CCTV-monitored compound
- The van itself has additional security measures (Thatcham-approved alarm, deadlocks, sliplocks) that meet the insurer's specification
- You have a "no overnight removal" policy variant — these exist but premiums are typically 2–3× standard
The practical implication: most tradespeople unload tools every evening into a locked garage or shed at home. Annoying. But the alternative is a non-claimable loss.
Serial number and inventory requirements
For tools over £500 individual value (and certainly over £1,000), insurers will want:
- Photo of the tool
- Serial number recorded
- Receipt or proof of ownership
Build a "tool inventory" spreadsheet at the start of your policy — list every tool over £200, with photo and serial number. If you ever need to claim, this evidence makes the difference between a smooth payout and weeks of negotiation. Many tradespeople ignore this until they need it; by then it's too late.
Cost vs cover — sizing your policy
Estimate the replacement cost of all your tools at new-for-old prices. Add 20% as a buffer. That's your minimum cover level. A typical established trade has:
- Hand tools, basic power tools, consumables — £2,000–£4,000
- Mid-range power tools (drill, jigsaw, multi-tool, planer, etc.) — £2,000–£5,000
- Trade specialist tools (e.g. for plumbing: torch, press tool, drain rods) — £1,000–£5,000
- High-value items (laser level, test gear, multi-meter, scopes) — £500–£3,000
Total commonly £6,000–£15,000 for an established sole trader; £15,000–£30,000+ for a multi-tradesperson business.
Hired-in tools
A separate policy or rider covers tools you hire from a tool-hire company. Important because the hire contract makes YOU responsible for the tool while it's in your possession — if it's stolen, you owe the full replacement cost to the hire company. Hired-in cover is typically £20–£50/year for £2,000–£5,000 of cover, often added to an existing policy.
Public liability vs tools insurance
These are separate. Public liability covers damage YOU cause to OTHER people's property or person. Tools insurance covers damage to / theft of YOUR tools. Most tradespeople need BOTH. Public liability is usually £100–£300/year for £2m–£5m of cover; tools is £80–£400/year on top.
When you can self-insure
Below ~£2,000 of total tool value, self-insurance (i.e. just not buying a policy) may be cheaper over a 5-year period — the premiums add up and the replacement cost is manageable. Above £5,000, a stolen kit becomes a real business interruption — insurance is the rational call.
What to do if you're broken into
- Call the police immediately. Get a crime reference number — your insurer will require it.
- Photograph the damage and the scene before tidying.
- Make a comprehensive list of stolen items with model numbers and replacement prices.
- Notify your insurer within the policy's notification window (typically 24–48 hours).
- Don't replace tools you intend to claim for until the insurer has logged the claim — they may need to assess the loss.
Frequently Asked Questions
Will my van insurance cover tools?
Most "fully comprehensive" van policies include token tools cover — typically £500–£2,000. Read the policy. For a real working tradesperson, £500 is not meaningful — buy dedicated tools insurance even if your van policy has a token amount.
Does it cover tools used by my apprentice or employee?
If the tools belong to you (the policyholder) and are used in your business — yes. If they belong to the employee — no; the employee needs their own policy or you need to buy them as business assets first.
What about tools left at customer's site overnight?
Check the policy. Many include site theft cover with conditions (locked container, alarm, etc.). Some exclude unattended site storage. If you regularly leave kit on site, specifically ask the insurer for site-overnight cover.
Can I claim for damaged tools?
Only if you bought an accidental damage rider, AND the damage isn't wear and tear, AND the policy includes mechanical damage. Most basic policies exclude all accidental damage — this is the cheapest way for insurers to keep premiums down. Add the rider if you do heavy site work.
My tools were stolen from a locked van during the day — am I covered?
Yes, provided:
- Forced entry is evident (broken window, jemmied door, etc.)
- The vehicle was locked at the time
- Any required alarm was set
- The theft was reported to police promptly
- You have a crime reference number
Daytime theft from a locked van is the most clear-cut covered loss.
Regulations & Standards
No statutory regulation of tools insurance — it's a commercial insurance product, not a regulated mandatory cover
Public liability is separately required by some scheme memberships (NICEIC, Gas Safe etc.) but tools insurance is discretionary
Construction (Design and Management) Regulations 2015 — implies duty to maintain serviceable tools; insurance is a financial mechanism not a regulatory one
Insurance Act 2015 — sets out the duty of fair presentation when applying for a policy — disclose all material facts honestly
Consumer Insurance (Disclosure and Representations) Act 2012 — applies to sole traders insuring as individuals; protects against innocent non-disclosure
Federation of Small Businesses: insurance for tradespeople — FSB
British Insurance Brokers' Association: find a broker — BIBA
Citizens Advice: small business insurance — Citizens Advice
public liability — companion essential cover
van insurance guide — vehicle policy with optional tools cover
business bank account setup — separate business finances make claim documentation simpler
lone worker safety — site security overlap with tools security