How does tool insurance work?

Tool insurance works by paying a monthly or annual premium to protect your tools against theft, damage, and loss. When something happens to your tools, you file a claim and the insurer covers replacement or repair costs minus any excess.

What is the claims process for tool insurance?

The claims process involves: 1) Report the incident immediately, 2) Provide evidence (photos, receipts, police report), 3) Complete claim forms, 4) Assessment by insurer, 5) Claim approval and payment, typically within 5-10 business days.

What is tool insurance in New Zealand?

Tool insurance in New Zealand is specialized coverage that protects tradies' professional tools and equipment against theft, damage, and loss. It covers tools stolen from vehicles, worksites, or storage facilities, with policies ranging from $20-100 per month depending on coverage level.

Which trades need tool insurance in NZ?

Tool insurance is essential for builders, electricians, plumbers, carpenters, painters, landscapers, mechanics, and any trade professional who relies on tools for their livelihood in New Zealand.

How much does tool insurance cost for NZ tradies?

Tool insurance in New Zealand typically costs between $20-100 per month or $300-1,200 annually, depending on the value of tools, occupation, and coverage level. Most tradies with $10,000-30,000 worth of tools pay around $40-60 monthly.

What does tool insurance cover in New Zealand?

NZ tool insurance covers theft from vehicles (including forced entry), theft from worksites, accidental damage, fire damage, natural disasters, malicious damage, and mysterious disappearance. Most policies cover tools up to $50,000 with options for higher limits.

Which insurance companies offer tool insurance in NZ?

Leading tool insurance providers in New Zealand include State Insurance, AMI Insurance, Builtin Insurance (specialist trade insurer), Bizcover (comparison platform), AA Insurance, Tower Insurance, and Vero. Each offers different coverage options and pricing for tradies.

Tool Insurance New Zealand - Comprehensive Coverage for Tradies

ToolInsurance.co.nz is New Zealand's premier tool insurance comparison service, helping tradies, builders, electricians, plumbers, and contractors find affordable coverage for their professional tools and equipment.

Our Service

We compare tool insurance quotes from State Insurance, AMI, Builtin Insurance, Bizcover, and other leading NZ insurers. Our free comparison service helps Kiwi tradies save up to 40% on their tool insurance premiums.

Coverage Types

Theft from vehicles (forced and non-forced entry)
Theft from worksites and storage
Accidental damage and breakage
Fire, flood, and natural disasters
Malicious damage and vandalism
Power surge damage for electrical tools

Industries We Serve

Building and Construction
Electrical Services
Plumbing and Gasfitting
Carpentry and Joinery
Painting and Decorating
Landscaping and Gardening
Automotive and Mechanical
HVAC and Refrigeration

How Tool Insurance Works: Complete Guide

Everything you need to know about tool insurance from start to finish

Step 1: Getting Tool Insurance Coverage

What You Need to Provide

Tool inventory: List of all tools with values and serial numbers
Receipts: Proof of purchase for high-value items
Photos: Visual record of your tools and serial numbers
Business details: Trade, location, security measures

Coverage Options

Basic Coverage

Theft and fire protection only

Comprehensive Coverage

All risks including accidental damage

Business Interruption

Lost income while tools are replaced

Step 2: How Premiums Are Calculated

Tool Value

Primary factor - typically 1-3% of total tool value annually

$5,000 tools = $50-150/year

$20,000 tools = $200-600/year

Risk Factors

• Your occupation/trade
• Location (crime rates)
• Storage security
• Claims history

Discounts Available

• Security systems (10-15%)
• No claims bonus (5-20%)
• Multi-policy discount
• Annual payment discount

Step 3: How to Make a Claim

Immediate Actions (Within 24 Hours)

• Report theft to police (get case number)
• Contact your insurer's claims hotline
• Secure the scene and take photos
• Don't disturb evidence

Documentation Required

• Completed claim form
• Police report number
• Photos of damage/theft scene
• Receipts for stolen/damaged tools
• Tool inventory list

Assessment Process

• Claims assessor reviews your case
• May inspect damage or theft scene
• Verify tool values and ownership
• Check policy terms and conditions

Claim Settlement

• Approval notification (usually 5-10 days)
• Payment minus excess amount
• Option for cash or replacement tools
• Temporary tools may be provided

Step 4: After Your Claim

Claim Impact

Premium may increase at renewal (typically 10-20%)
No claims bonus may be affected
Claims history follows you between insurers

Prevention Tips

Improve security to prevent future claims
Update tool inventory regularly
Consider higher excess for lower premiums

Common Questions About How Tool Insurance Works

How quickly are claims paid?

Most straightforward claims are settled within 5-10 business days. Complex claims involving investigations may take 2-4 weeks.

Can I choose cash or replacement tools?

Most insurers offer both options. Cash settlements are based on current replacement costs minus depreciation (if applicable).

What if I can't prove ownership?

Claims may be denied without proof of ownership. Keep receipts, photos, and maintain an updated tool inventory.

Are there any exclusions?

Common exclusions include wear and tear, tools left unattended in public, and theft from unlocked vehicles.