Protecting Your Tools with General Property Cover
A carpenter without tools is an office worker, a mechanic with tools is pushing it, a plumber without tools is up shit creek.
Most tradies cover their public liability insurance risk, a lot organise cover for their income in the event of injury, but too many overlook their tools. Sure, you can replace most for a few hundred dollars, but what if all of them were stolen or lost? What would you do if there was a fire on the site where you left your tools?
Is it worth insuring them or is the premium likely to be too high?
What is General Property Cover
Insurers offer Tools of Trade Insurance or what’s sometimes known as General Property Cover, for these events.
General Property cover is available for an extensive range of equipment including;
- Tools of Trade
- Light Machinery
- Survey Equipment
- Mobile Electronic
- Mobile Medical Equipment
- Photographic Equipment
- Diagnostic and Measuring Equipment
- Musical Instruments
- Sports Equipment
General Property Cover is normally available for items you can carry or move away from your premise and items that are considered essential for your trade.
But it’s important to check that your policy will cover your risk, does it;
- Cover for full theft in the open air?
- Does it cover the full replacement value of your tools?
- Accidental loss?
- Accidental damage?
- Loss in transit?
- Overseas cover if you’re working away?
- Does it have a suitable excess?
- And at renewal does it include recent purchase and match the new values?
Let’s look at those risk in a little more detail
Cover for full theft in the open air* is if it’s stolen anywhere, this might mean on a worksite, off your trailer or at your home at night. Insurers will offer restricted versions of this cover, that may only cover them if you take them to your home or a lock premise at night.
Loss in transit is where it’s carried by a third party or may include theft from your ute on the way to or at a job or worksite.
Most general property policies will start with a $100 excess, but the higher the excess generally the lower the premium.
Insurers may offer general property cover as inclusion in a public liability policy, but often they won’t cover the full amount of you tools and maybe restricted to items where you can produce recent receipts.
Before buying a General Property Policy
Get multiple quotes – compare the market
Make a list and estimate the replacement value
Keep receipts in an electronic version for referring back to when necessary
Check the insurers’ exclusions to ensure your risks are covered
Consider the appropriate excess for your situation
Check the insurers claims rating
If you’re unsure, speak to a broker, who can more carefully consider your risk
Any advice that may have been given is general advice only, please be aware that we have not taken into consideration your needs, objectives or financial requirements. Before deciding to purchase a financial product you should consider the appropriate Product Disclosure Statement to ensure the product is suitable for your needs.
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