Tools of the trade: Insurance for tradies

Tools of the trade: Insurance for tradies


Whether you’re a chippy, sparky, brickie or other skilled tradie, it’s important that you’re covered in case the unexpected happens.  

Tool insurance in Australia can provide the funds to replace your tools should they be stolen or damaged.

Tools of trade insurance policies can vary, so when purchasing a new policy or renewing your current policy it’s important to consider the restrictions, depreciation, or exclusions of the cover you choose.

Not all tools of trade insurance policies are created equal, and different policies will have different levels of coverage. That said, typical tools of trade policy will generally cover things such as:

  • damage caused by fire or lightning;
  • theft following forced or violent entry;
  • damage caused by a vehicle collision or rollover; 
  • theft, which is arguably the most common risk for tradies and, therefore, an important inclusion in most tools of trade policies.

Cover your tools with Portable and Valuable Items Insurance 
Having to replace damaged, lost, or stolen tools can be a real setback. Not only is it tough to work without them, but they can be expensive to replace. That’s where portable and valuable items insurance can help. It covers you for accidental loss of, or damage to, portable or valuable items you carry with you while you work – anywhere in the world! This includes your work-use mobile phone or GPS, as well as that fancy new drill you’ve been showing off. Just make sure anything worth more than $2,500 is specified on your policy. 

Other insurance types for tradies 

Cover others with Public and Products Liability Insurance

A job site can be a busy, hazardous place. Public and Products Liability Insurance can cover the cost of compensation if your business or products cause personal injury to a third party or damage to their property. For example, if a customer trips over a tool left on the floor and breaks their arm, public liability insurance can help cover you from liability.

Cover your wheels with Commercial Motor Insurance 

Being out of action because your Ute has been banged up is money down the drain and a massive pain in the you-know-what. Having some form of commercial motor insurance can help cover you from a range of insured events, such as theft or accidental damage. Plus, with AAMI comprehensive cover, accessories in, on, or attached to your vehicle are also covered – this includes tow bars, bull bars, fixed GPS units, tools, and toolboxes.

Bill Cover will take care of your bills, so you can take care of yourself! Bill Cover will pay a fixed monthly benefit or the total of your monthly bills (whichever is the lesser) for up to twenty-four months if you are unable to work due to injury or sickness. In the event of a claim, Bill Cover can be used to help pay for your business or general living expenses such as electricity, gas, gym membership, mortgage or rent.

Business insurance for tradesmen is designed to give your tradie business peace of mind knowing a safeguard is in place when things don’t stick to the blueprint.

Cyber Liability Insurance is designed to help protect you from claims and support your profitability in the event of a cyber breach or attack.

Being out of action because your Ute has been banged up is money down the drain and a massive pain in the you-know-what. Having some form of commercial motor insurance can help cover you from a range of insured events, such as theft or accidental damage. Plus, with AAMI comprehensive cover, accessories in, on, or attached to your vehicle are also covered – this includes tow bars, bull bars, fixed GPS units, tools, and toolboxes.

  • Equipment breakdown
  • Tax probe
  • Theft
  • Glass
  • Money, and 
  • Property damage.


Business Insurance

Your tools of trade and other business assets help you get the job done, so consider protecting them with coverage options like Portable Equipment* and Contents*

Insuring your tools, and your business against an instance when you have to down tools will ensure you still have a business,

Portable Equipment* – it’s likely you’ve accumulated a lot of tools over several years of work. If they were lost or stolen, could you turn up to work the next morning and keep working? She’ll be apples with Portable Equipment cover – it insures items such as tools, business equipment or electronic items.

Professional Indemnity insurance

If you are an electrician, plumber, or carpenter, sharing your tradie pearls of wisdom with your clients could lead to a potential claim if things don’t exactly go to plan and an accidental error occurs.

There’s no doubt you know your stuff when it comes to all things tradie, and if you are an electrician, plumber, or carpenter, clients may often seek out your advice on certain things. But did you know that if your advice causes them a financial loss you could be held responsible? That’s where Professional Indemnity insurance can provide a helping hand.

Professional Indemnity insurance covers you for losses claimed by a third party and defence costs due to alleged or actual negligence in your professional services or advice.

Personal Accident & Illness Insurance

Working as a tradie you rely on being physically fit to your business going and getting the job done, so if an accident or illness were to strike you need to think of Plan B to help provide an income while you’re off recovering.

As a tradie you need to be fit and healthy to bring in the dough – but have you stopped to think about how you would keep on paying the bills if you were to injure yourself or fall ill and had to take time off work to recover? Accidents can happen anywhere, anytime. It could be at work or even on your own time, whether you are doing a bit of DIY around the house or playing a game of backyard footy on the weekend.

Personal Accident and Illness Insurance provides levels of cover for loss of income, permanent disablement and even death if you are unable to work because of an injury or illness.

There’s no doubt a tradie’s work can be hard yakka, with a variety of obstacles to overcome every day.


General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.


Insurance Advisernet, ABN 15 003 886 687, AFSL 240549

This article originally appeared on Insurance Advisernet and has been published here with permission.

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