Tools and equipment insurance

Cover for the tools and portable equipment your business relies on if they are stolen, lost or damaged.

Updated 4 October 2026

The short answer

What is tools and equipment insurance?

Tools and equipment insurance, sometimes called general property or portable equipment cover, pays to repair or replace the tools your business uses if they are stolen, lost or accidentally damaged. For tradies the most common claim is theft from a ute, van or site, so the security conditions in the policy matter.

What does tools and equipment insurance usually cover?

Every policy is different, so the wording always decides. These are the typical inclusions and exclusions.

Usually covered

Theft of tools and equipment, including from a locked vehicle or site, subject to the policy's conditions
Accidental loss or damage to portable tools, both on the job and in transit
Specified high-value items such as laser levels, test equipment, generators or drones, when listed
Unspecified smaller tools up to a per-item limit

Usually not covered

Wear and tear, gradual deterioration and mechanical or electrical breakdown
Theft from an unlocked or unattended vehicle where the policy requires it to be locked or out of sight
Tools left on an open site overnight, unless the policy specifically covers it
Mobile plant and machinery, which usually needs plant and equipment cover

Who uses tools and equipment insurance?

Any trade whose income stops when the tools go missing: electricians, plumbers, carpenters, tilers, painters, landscapers and mechanics. It matters most for businesses that keep a lot of gear in a vehicle overnight, carry expensive testing or measuring equipment, or would lose days of work replacing a full kit.

What do clients and sites ask for?

Clients rarely ask about tools cover, because it protects you rather than them. It tends to be bundled into a trade insurance package alongside public liability, which can work out simpler and cheaper than separate policies.

When it gets harder

When does tools and equipment insurance get more complicated?

Expensive specialist equipment

Items like thermal cameras, CCTV drain cameras, survey equipment or large generators often exceed unspecified item limits and need to be listed individually with their value.

Gear stored in vehicles overnight

Policies often have conditions about how tools are stored in vehicles, such as a locked compartment, a locked canopy or the vehicle being garaged. If your kit lives in the ute, those conditions decide whether a theft claim is paid.

Hired and borrowed equipment

Equipment you hire or borrow may need to be noted on your policy, and hire companies sometimes require proof of cover before releasing it.

Cost

What affects the cost of tools and equipment insurance?

Factors that affect the price of tools and equipment insurance
Factor	Why it matters
Total value of tools	The sum insured for unspecified tools plus each specified item is the biggest driver.
Where tools are kept	Locked garages, toolboxes and canopies are viewed more favourably than open trays or sites.
Location	Theft rates vary by suburb and region, which affects pricing.
Claims history	Previous theft claims usually increase premiums or the excess.
Excess	A higher excess lowers the premium but increases what you pay per claim.

Common questions

Questions about tools and equipment insurance

Are tools covered if they're stolen from my ute?

Usually yes, provided you meet the policy's security conditions, which commonly require the vehicle to be locked and the tools out of sight or in a locked compartment. Some policies also have time-of-day or forced-entry conditions, so it is worth checking the wording.

What's the difference between specified and unspecified tools?

Unspecified tools are covered as a group up to a total amount, with a per-item limit. Specified items are listed individually with their value, which is how expensive equipment is usually covered for its full replacement cost.

Does home and contents insurance cover my work tools?

Often not, or only up to a low limit. Many home and contents policies exclude or limit business equipment, and they generally don't cover tools while they're on the job or in your vehicle.

Is tools insurance worth it for a sole trader?

It depends on what replacing your kit would cost and how long you'd be off work while you did. For many sole traders the bigger cost of a theft is the lost days, not just the tools.

Tools and equipment by trade

How tools and equipment insurance applies to specific kinds of work.

Other types of insurance

This page is general information only. It does not take into account your objectives, financial situation or needs, and it is not a recommendation to buy any insurance product. Always read the policy wording and, where applicable, the Product Disclosure Statement.

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