What tools and equipment insurance is
This cover addresses the physical loss of or damage to portable equipment that is too small or too mobile to be scheduled as plant. Examples include power tools, hand tools, generators, plate compactors, concrete vibrators, breakers, welding sets, survey instruments and small pumps.
The challenge is that these items are frequently moved between sites, stored in site containers or vehicles, and used by many people. Insurers therefore focus on where tools are kept, how they are locked away and how an individual item can be identified.
Heavier machines belong under Plant All Risk insurance. Where tools are carried between sites, the journey may also raise goods in transit questions.
Who may need it
- Subcontractors whose tools are their livelihood, such as formwork, paving, drainage and steel-fixing teams.
- Civil contractors with many small items that do not justify being on a plant schedule.
- Survey and setting-out teams using total stations, levels and GPS equipment.
- Concrete and paving contractors with vibrators, screeds, saws and compactors.
- Businesses that store tools in site containers or leave them in vehicles overnight.
What may be insured, subject to terms
- Portable power and hand tools
- Drills, grinders, saws, breakers and similar tools, usually with a limit for any one item.
- Small plant and generators
- Generators, compressors, plate compactors and pumps that are not scheduled as plant.
- Survey and measuring instruments
- Optical and electronic instruments, which are high in value and sensitive to damage. Ask whether accidental damage as well as theft is included.
- Tools in site containers
- Storage in a locked container or lock-up, normally subject to a minimum standard of locks and construction.
- Tools in vehicles
- Tools left in a vehicle often attract specific conditions, such as being out of sight, locked and not left overnight.
Important limitations and questions to discuss
- Forced entry conditions
- Theft cover frequently requires evidence of forced and violent entry to a locked container, building or vehicle. Theft without that evidence may not be covered.
- Unattended vehicles
- Tools left in an unattended vehicle are commonly excluded or subject to strict conditions.
- Single-item limits
- Most policies limit the amount payable for any one item, which can be lower than the value of a survey instrument or specialised machine.
- Identification and records
- A register of serial numbers helps both the quotation and any claim. Without it, proving what was stolen can be difficult.
- Wear and tear and mechanical breakdown
- Normal deterioration and breakdown are normally excluded, as for plant.
- Employee tools
- Tools owned by employees or subcontractors may or may not be covered. Say whose tools are included.
Where tools are kept changes the questions
| Where the tools are kept | Questions an insurer may ask |
|---|---|
| Locked site container | Type and quality of container and lock, whether it is fixed or can be moved, and whether the site is fenced and guarded. |
| Vehicle overnight | Whether tools are removed at the end of the day, or the vehicle is parked in a secure place, locked and fitted with a tracking device. |
| Depot or workshop | Security measures, alarm and access control, and whether the building is occupied. |
| In transit between sites | How tools are packed and secured, and whether the journey is covered under goods in transit or tools cover. |
| On site during working hours | Supervision, tool control procedures and whether tools are checked in and out. |
Information we usually need for a quotation
A short tool register and an explanation of how tools are stored is enough to start a quotation.
- A list of tools and equipment with serial numbers where available, and replacement values.
- The highest-value single item.
- Where tools are kept: containers, vehicles, workshops or on site.
- Security measures at each location.
- Whether employees or subcontractors bring their own tools.
- Your claims history, particularly theft claims.
You do not need everything on day one. A short description of the work is enough to start, and the quote form only asks for the details relevant to your enquiry.
Frequently asked questions
Is a generator a tool or plant?
It depends on size, value and how the insurer classifies it. Large trailer-mounted generators are often scheduled as plant. Smaller portable units are commonly included under tools. We will help you decide how to schedule them.
Why was my theft claim declined when the container was locked?
Cover is typically conditional on specific security standards and on evidence of forced and violent entry. Read those conditions and ask how they apply to your storage arrangement before you rely on the policy.
Do I need a tool register?
It is not always mandatory, but it makes the quotation more accurate and the claim easier to prove. Photographs and serial numbers are particularly useful.
Related cover
- Plant All RiskCover for excavators, loaders, rollers and other contractors’ plant against accidental loss or damage, subject to terms.
- Owned plantInsurance structured around a contractor’s own plant portfolio, from a single schedule to values, finance interests and changes during the year.
- Goods in transitCover for materials and equipment while they are being moved, and how that differs from other policy sections.
- Contractors All RiskCover for the works under construction, such as roadworks, drainage, pipelines and structures, subject to policy terms.
Related guides
- Construction insurance checklist for contractorsA construction insurance checklist for a broker conversation: project details, contract requirements, covers, plant, subcontractors and comparing quotations.
- Documents needed for a construction insurance quoteA practical guide to the documents and information needed for a construction insurance quote: project, contract, plant, business and claims information.
Industries this applies to
- Construction subcontractorsFlow-down requirements from the main contract, liability limits, tools and evidence of cover for subcontractors.
- Concrete contractorsFormwork and falsework, pumps and mixers, defective pours and spillage in concrete construction.
- Paving contractorsTools, small plant, vehicles, materials and client property on many short paving contracts.