Tool Insurance for Employees
Own your tools but work for someone else? Get coverage that protects your investment whether you're on the job, travelling to work, or at home.
Own your tools but work for someone else? Get coverage that protects your investment whether you're on the job, travelling to work, or at home.
Understanding the responsibilities
Affordable protection for your work tools
For apprentices and those starting out
For qualified tradies with professional kits
For senior tradies with extensive toolkits
Review your contract for any clauses about tools, tool allowances, or insurance. Some agreements specify who's responsible for tool insurance or provide an allowance to cover it.
Your employer may already have business insurance that covers employee tools on-site. Ask for details about what's covered, the limits, and any exclusions.
If your employer doesn't provide tool insurance, you could negotiate a tool allowance as part of your remuneration. This can help offset the cost of personal tool insurance.
Even if your employer provides some coverage, having your own policy ensures you're protected if you change jobs, work side jobs, or if employer coverage has gaps.
This depends on your employment agreement. In NZ, there's no legal requirement for employers to insure employee-owned tools. However, many employers choose to provide coverage as a benefit, or contribute towards employee tool insurance. Always check your employment contract for specifics.
Yes, employees can take out their own tool insurance policies. This is often recommended as it gives you control over coverage levels and ensures your tools are protected regardless of your employment situation. Many tool insurance policies are designed for individual tradies, whether employed or self-employed.
If you use your tools primarily for work and they're essential to earning your income, the insurance premiums may be tax deductible. This applies even if you're an employee rather than self-employed. Consult a tax professional for advice specific to your situation.
Employer policies often have limits or exclusions. They might not cover tools in your vehicle, high-value items, or tools taken home. Your own policy can fill these gaps and provide complete protection.
Home contents insurance usually has very low limits for tools used for business purposes - often just $500-$1,000. If your tools are worth more, you'll need dedicated tool insurance or a specific extension to your home policy.
Get affordable coverage that stays with you, regardless of where you work.
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