Tools of trade insurance: what it covers and who carries it

How the cover is structured

Most policies carry an overall sum insured and a separate limit for any one item, so a single expensive piece of equipment can be under-covered even when the total looks adequate.

Hired and borrowed tools, and tools belonging to employees, are frequently treated differently again, and each of those is worth checking against how the business actually works.

The security conditions that decide claims

Theft cover typically depends on conditions about how and where tools were kept: locked in a vehicle, out of sight, in a secured box, or inside a locked building. A claim that fails one of those conditions is where most disputes in this class come from.

Unattended vehicle wording is the usual sticking point, and it is written into the policy rather than left to judgement.

What people get wrong about it

The first error is insuring the price paid rather than the price to replace. A kit assembled over years costs considerably more to rebuild in one purchase.

The second is assuming the motor policy already covers it, which is usually true only up to a small sub-limit.

The third is forgetting to add tools bought since the policy started, so the schedule describes a kit the business no longer has.

Questions

Are tools covered if they are stolen from my locked ute overnight?

It depends on the security conditions in the wording — whether the vehicle was locked, whether the tools were out of sight, and whether any overnight or unattended-vehicle condition applies. Those conditions are in the policy document rather than on the certificate.

Does it cover tools I hire?

Some policies extend to hired-in tools and some do not, and hire agreements often make the hirer responsible for damage regardless. The hire contract and the policy schedule together give the answer.

Occupations that commonly carry it

Ordered by how central this cover is to each occupation in the graph. A pattern in the data, not a statement that any business is required to hold it.

• Electricians — Licensed electrical work, from domestic fit-outs to commercial and industrial installation.
• Plumbers — Licensed plumbing, drainage and gas-fitting work across domestic and commercial sites.
• Carpenters — Structural and finish carpentry, framing, formwork and fit-out.
• Builders — Licensed building work as principal contractor on residential or commercial projects.
• Handypersons — General maintenance and repair work below the licensing thresholds of the specialist trades.
• Roofers — Roof installation, restoration and plumbing-adjacent roof drainage work at height.
• Painters — Interior and exterior painting and decorating, domestic and commercial.
• Tilers — Wall and floor tiling, waterproofing-adjacent work in wet areas.
• Landscapers — Hard and soft landscape construction, including retaining, paving and irrigation.
• Concreters — Formwork, placement and finishing of concrete slabs, driveways and structural elements.
• Scaffolders — Erection, alteration and dismantling of scaffolding, a high-risk licensed activity.
• Welders — Structural and fabrication welding, including hot work on site.
• Solar installers — Design and installation of photovoltaic and battery systems, an accredited electrical specialisation.
• HVAC technicians — Installation and servicing of heating, ventilation, air conditioning and refrigeration plant.
• Earthmoving contractors — Excavation, bulk earthworks and site preparation using mobile plant.
• Demolition contractors — Licensed demolition and strip-out, including work adjacent to hazardous materials.
• Arborists — Tree assessment, pruning and removal, frequently near structures and services.
• Pest control technicians — Licensed application of pesticides and termite management for domestic and commercial property.
• Bricklayers — Brick, block and masonry walling for residential and commercial structures.
• Plasterers — Wall and ceiling lining, cornice, rendering and set finishing.
• Glaziers — Supply and installation of glass in windows, doors, shopfronts and balustrades.
• Waterproofers — Membrane and tanking work to wet areas, balconies, roofs and below-ground structures.
• Stonemasons — Cutting, dressing and installing natural and engineered stone, including benchtops and cladding.
• Cabinet makers — Manufacture and installation of joinery, cabinetry and built-in furniture.
• Shopfitters — Fit-out of retail and commercial tenancies, usually working to a landlord’s conditions.
• Flooring installers — Laying timber, vinyl, laminate and carpet in domestic and commercial spaces.
• Insulation installers — Installation of thermal and acoustic insulation in roofs, walls and subfloors.
• Fencing contractors — Boundary, security, pool and rural fencing, including gates and automation.
• Paving contractors — Laying pavers, kerbs and hard surfaces for driveways, paths and public areas.
• Asphalt contractors — Surfacing and resurfacing of roads, car parks and driveways with hot-mix and bitumen.
• Civil contractors — Roads, drainage, subdivisions and utilities work, usually under principal-supplied contracts.
• Steel fixers — Placing and tying reinforcement before concrete pours.
• Structural steel erectors — Erection of structural steel frames, portal frames and mezzanines.
• Riggers — High-risk licensed rigging and dogging work supporting lifts and structural erection.
• Crane operators — Operation and hire of mobile and tower cranes, usually with an operator supplied.
• Formworkers — Construction and stripping of formwork for suspended slabs, walls and columns.
• Concrete pumpers — Placement of concrete by boom and line pump, operating over occupied sites.
• Asbestos removalists — Licensed removal and disposal of asbestos-containing material.
• Traffic controllers — Traffic management and control at roadworks and site accesses.
• Line markers — Marking of roads, car parks and sports surfaces.
• Antenna installers — Installation and tuning of television antennas and reception equipment, mostly at height.
• Garage door installers — Supply, installation and servicing of garage and roller doors and their motors.
• Swimming pool builders — Construction of in-ground and above-ground pools, including barriers and certification.
• Deck builders — Construction of timber and composite decks, pergolas and outdoor structures.
• Shed builders — Supply and erection of steel sheds, garages and rural buildings.
• Kitchen installers — Removal and installation of kitchens, coordinating trades in an occupied home.
• Bathroom renovators — Bathroom strip-out and rebuild, combining waterproofing, tiling and plumbing trades.
• Window installers — Supply and installation of windows and doors in new and existing openings.
• Fire protection technicians — Installation, testing and certification of fire detection and suppression systems.
• Lift technicians — Installation and maintenance of lifts, escalators and access equipment.
• Signwriters — Design, fabrication and installation of signage, often at height or on shopfronts.
• Scaffold hire operators — Hire of scaffolding and temporary access equipment, with or without erection.
• Equipment hire operators — Dry and wet hire of tools, plant and access equipment to trades and the public.
• Commercial cleaners — Contract cleaning of offices, strata common property, construction sites and end-of-lease work.
• Gardeners — Grounds maintenance, mowing and garden care for domestic, strata and commercial clients.
• Carpet cleaners — Steam and dry cleaning of carpets and upholstery in homes and commercial premises.
• Window cleaners — Internal and external window cleaning, including rope access and elevated work.
• Pressure cleaners — High-pressure cleaning of driveways, facades, roofs and industrial surfaces.
• Gutter cleaners — Clearing and maintaining roof gutters and downpipes, working at height.
• Mechanics — Servicing and repair of vehicles in a workshop, in customers’ custody.

Sources

• Moneysmart (ASIC) — General guidance on business insurance from the regulator’s consumer site. A starting point, not a definition of this cover.