Tools of Trade Insurance
Whether you’re a carpenter, an electrician, a plumber, a landscaper, a painter, or other skilled tradie, tools are one of your most important assets. It can be expensive to replace or repair valuable tools of trade if something goes wrong. Which is why it’s important for tradies to protect tools and equipment from damage, loss or theft.
What is tradie tool insurance?
Portable Equipment insurance also known as tools of trade insurance, covers businesses for loss and damage to tools or equipment they use everyday for their business. This includes hand tools, power tools, plus specialised trade tools, and may also include items of stock. This type of cover provides financial cover to repair or replace these items in the event of theft and accidental damage. Portable Equipment can be added to your tailored Business Insurance Package.
Cover for your tools and business equipment
As a tradie, tools aren’t just part of the job—they are the job. Without them, tradies can’t take on projects, meet deadlines or earn an income. That’s why tools insurance can be a smart investment.
Replacing lost, stolen or damaged equipment can cost thousands of dollars, and those unexpected bills can quickly add up. Tools insurance helps cover the cost of repairing or replacing essential your tools of trade so you can get back to work faster after an incident. It also offers peace of mind when you’re on the move, knowing you’re protected against common risks like theft, fire, storm or accidental damage.
What is covered?
- Fire, storm, water, or explosion
- Malicious and accidental damage
- Theft following forced or violent entry, and theft of equipment securely attached to a vehicle
- Vehicle collision or rollover
What is not covered?
- Gradual wear and tear
- Cracked, scratched or broken glass
- Mechanical, electronic or electrical breakdowns
- Damage caused by rust, mildew, mould, dry rot, insect and vermin, contamination, or pollution
- Employee theft or unexplained inventory shortages
Do you work from a set premises? Consider Theft insurance
If you work in a set premises and keep tools there, you may also want to consider Theft insurance.
In Victoria alone, there were 18,068 reports of stolen tools and 18,640 reports of stolen power tools during the financial year 2024-25.
Theft insurance is different to Portable Equipment insurance. Theft insurance covers businesses against loss and damage as a result of theft or attempted theft from their business premises. Damage to the building, locks and safes as a result of a covered event will also be covered. Theft insurance is another option that can be added to a Business Insurance Package.
Do you work from site to site? Consider Portable Equipment insurance
If your work takes you from site to site and you regularly carry tools, equipment, or professional devices with you, Portable Equipment insurance may be worth considering.
Portable Equipment insurance covers the loss, theft, or accidental damage of items business owners take with them while working away from their main premises. This can include tools, laptops, cameras, machinery, and other essential gear, helping ensure they’re not left out of pocket if something goes wrong while they’re on the move.
Other types of insurance for tradespeople
Tradies may also wish to cover other parts of their business in addition to their tools and equipment.
BizCover offers a range of cover options for tradies, including:
Cover tools of trade in minutes
When looking for affordable tradie tool insurance options in Australia, look no further than BizCover. Compare competitive quotes from a range of trusted leading insurance partners online and you could get covered in as little as 10 minutes.
Frequently asked questions
Carpenters, electricians, plumbers, painters, landscapers, and other tradespeople who rely on tools and equipment to earn an income may benefit from tools insurance.
Home and Contents insurance typically doesn’t extend to tools of trade used for business purposes. Businesses need specific Portable Equipment insurance to protect their work tools and equipment.
The cost varies based on the value of tools, trade, and coverage limits.
Premiums for business-related insurance are often tax-deductible. Always check with your accountant or a tax professional for advice tailored to your situation.
Cover for theft from a vehicle depends on the policy conditions. Many insurers require that tools be stored in a locked, fully enclosed vehicle or secured toolbox. It’s important to check the specific security requirements of your policy.
Most insurers will cover both new and used tools as long as you can provide proof of ownership, such as receipts or serial numbers. However, coverage is subject to the policy terms and conditions.
This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording or Product Disclosure Statement (available on our website). Please consider whether the advice is suitable for you before proceeding with any purchase. Target Market Determination document is also available (as applicable). © 2026 BizCover Pty Limited, all rights reserved. ABN 68 127 707 975; AFSL 501769.
