An insurance specialist has warned that many tradespeople may not be protected financially, if they were to fall victim to crime.
Barry Marsh (pictured), an insurance specialist at Trade Direct Insurance, warns that many tradespeople do not have the appropriate cover in place to ensure they receive financial reimbursement if their tools were stolen.
Barry explains: “Tool theft is a serious crime that impacts tradespeople on many levels. Not only do victims have to deal with the crime itself, but it could also impact their ability to work and earn for at least 48 hours, not to mention the ongoing mental health impact and psychological trauma of being the victim of a targeted crime.
“On top of this trauma, we unfortunately find that many tradespeople do not have the sufficient insurance in place to cover their tools, and in some cases they do not have any protection at all.
“Insurance is an easy thing to overlook, and tradespeople may want to save costs by reducing their cover and premiums. In addition, some insurers are not clear with the level of protection that their policies offer, leading to confusion when choosing insurance that most suits your needs.”
Barry urges tradespeople to check three main conditions on their insurance policy to ensure they are adequately protected.
Tool value
Barry says: ”Many tradespeople have a collection of tools that they have acquired over years in the job, and these tools often have considerable value. However, we find that some tradespeople underestimate the value of their tools, or only have a minimal amount of tool cover in place.”
“Other steps you can take to ensure you have full cover for your tools is cataloguing everything you have in your inventory. Keeping hold of your receipts is important, but don’t worry if you don’t have receipts for some tools in your collection as some insurers will accept a photo of the items with a timestamp.
“Once you have a good understanding of the true value of your tool collection, review your policy to ensure you have adequate cover in place should the worst happen.”
Tool location
Barry explains: “Some policies may not provide cover for all circumstances, so it’s important that you check your insurance terms to confirm that you are appropriately covered.
“Check to make sure your policy does not require you to park your van in a certain place, remove your tools from the van, or if it will cover you away from your home address.
“It’s important you check for any conditions that don’t suit your circumstances to reduce the likelihood of denied claims if you fall victim to tool theft.”
Hours covered
Barry shares: “Some policies are restrictive for when they will cover your tools, and in some cases they will not provide protection if tools are stored in your van overnight, the time when break ins are most likely to occur.
“I recommend checking your policy for any terms which are likely to leave you underinsured or unprotected during the period of highest risk.”
Image: Barry Marsh, Trade Direct Insurance
