With van theft on the rise and equipment prices increasing it’s becoming more important than ever before to ensure that you have tool insurance for your business. From covering the cost of stolen items to providing you with the cash flow to ensure business continuity there are many benefits to this as an investment. So, what do you need to know about tool insurance to make sure that you get the right protection for you?
Don’t underestimate how much your tools are worth
Maybe you’re in a rush, maybe you just want to pick the cheapest tool insurance policy but there are some real disadvantages to underestimating the worth of your tools. The biggest of these is that any future pay out won’t be big enough to enable you to replace anything that has been lost. Make sure that the policy you choose covers the full value of your tools if you want complete peace of mind. It’s also important to check the excess – how much will you have to cover yourself before the policy kicks in?
Are you invalidating your policy with bad habits?
It’s essential to understand what it is that will give an insurance company a reason not to pay out when it comes to tools. For example, most policies will set out strict requirements about security and how tools are stored. It may be that the policy you’ve chosen doesn’t cover your tools in a vehicle so if you leave them in the van overnight and they are stolen you’ll get nothing from the insurer. If you want to claim successfully then you need to follow the rules.
What kind of payout are you signing up for?
Insurers are not all alike and, unfortunately, many people only discover this at the stage of making a claim. It’s essential to read the small print when you’re buying an insurance policy, especially when it comes to how amounts you claim for are going to be assessed. For example, does your policy give you new for old if something happens to your tools or will the insurer take into account the age and condition of the tools at the time they were stolen and they pay out much less? Make sure you’re getting the type of policy you want and then keep records of your tools so that claiming is easy. Take photos, note down serial numbers and keep all your receipts.
If you need to make a claim
When you’re claiming for stolen tools the first step is always to notify the police. It may be that all you get from them is a Crime Reference Number but without this your insurer is unlikely to take any action. Take photos of any damage that your vehicle or building has suffered and get your evidence ready i.e. the receipts and serial numbers you’ve collected for each tool.
Tool insurance is an essential investment if your livelihood relies on this type of equipment. Finding the right policy and reading the small print are crucial to ensuring you get the benefits of what you’ve paid for.
If you are looking to secure your commercial vehicle get in touch with our team to discuss what measures you can put in place to protect your tools.