Is tool insurance worth it?

Yes, tool insurance is definitely worth it for anyone who relies on tools professionally. The cost of replacing stolen or damaged tools often far exceeds the annual premium, making it essential financial protection.

How much does tool insurance cost vs replacement?

Tool insurance typically costs $300-1200 annually, while replacing a full tool kit can cost $5,000-50,000+. The insurance premium is usually just 1-3% of your tool value.

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

The Short Answer: YES

Tool insurance is worth it for anyone with tools worth $2,000+ or who relies on tools for their livelihood. The average annual premium (1-3% of tool value) is far less than the cost of replacing stolen equipment.

$600

Average annual premium

$12,000

Average replacement cost

20:1

Cost vs benefit ratio

Cost vs Benefit Analysis

Breaking down the real numbers behind tool insurance

Tool Insurance Costs

Basic Coverage ($5,000 tools) $25-40/month

Annual cost: $300-480 (6-10% of tool value)

Professional Coverage ($15,000 tools) $50-75/month

Annual cost: $600-900 (4-6% of tool value)

Comprehensive Coverage ($30,000 tools) $80-120/month

Annual cost: $960-1,440 (3-5% of tool value)

Replacement Costs Without Insurance

Basic Tool Kit Theft $5,000-8,000

Hand tools, basic power tools, toolbox

Professional Kit Theft $15,000-25,000

Complete professional setup with specialty tools

Van + Tools Theft $30,000-60,000

Complete mobile workshop replacement

Real-World Examples

Actual cases showing the value of tool insurance

Case 1: Electrician Van Break-in

Annual premium paid: $720

Tools stolen: $18,000

Insurance payout: $17,500

Net benefit: +$16,780

Case 2: Builder Site Theft

Annual premium paid: $960

Tools stolen: $25,000

Insurance payout: $24,000

Net benefit: +$23,040

Case 3: Plumber Flood Damage

Annual premium paid: $540

Tools damaged: $8,500

Insurance payout: $8,000

Net benefit: +$7,460

When Tool Insurance IS Worth It

Clear indicators that you should get tool insurance

Tools Worth $2,000+

If your tools are worth more than $2,000, insurance premiums are typically justified.

Professional Tradies

If tools are essential for your income, insurance protects your livelihood.

Mobile Workers

Tools stored in vehicles or taken to job sites face higher theft risk.

High Crime Areas

Urban areas with higher tool theft rates make insurance more valuable.

Specialized Tools

Expensive specialty tools that are hard to replace quickly.

Can't Afford Replacement

If losing tools would cause financial hardship or business closure.

Business Requirements

Clients or contracts require proof of tool insurance coverage.

Peace of Mind

The stress relief and security of knowing you're protected is valuable.

See If Tool Insurance Is Worth It For You

Get a personalized quote and cost analysis