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Small but mighty, your tools can mean a successful days work or major delays for your business. 

What is Tools Cover and why do I need it?

Tools cover, also known as General property or Material Damage Insurance, is a vital protection for businesses in New Zealand that rely on tools and equipment for their operations. This insurance provides coverage for the loss, theft, or damage to tools and equipment owned by your business, ensuring you can continue your operations without significant financial setbacks and delays. 
In New Zealand, Tradies rely on their tools and equipment every day, whether you are a Builder, Roofer or Electrician having tools cover can be a life saver. Tools insurance ensures your covered as tools and equipment are often costly to replace or repair. 

Key Features of Tools Cover:

  • Protection Against Loss or Damage: Tools cover protects your assets by providing compensation in the event of theft, loss, or damage to your tools and equipment. This coverage extends to situations such as theft from your premises or vehicle, damage during transportation, or accidental damage on-site. 
  • Continuation of Operations: In the event of a loss or damage to your tools, tools cover ensures that your business operations can continue smoothly. With timely compensation, you can replace or repair your essential tools without experiencing significant downtime. 
  • Customised Coverage: Tools cover can be tailored to meet the specific needs of your business. Whether you operate in the construction industry, automotive repair, or any other trade reliant on tools and equipment, you can customise your policy to ensure comprehensive coverage for your assets. 
  • Financial Protection: By mitigating the financial impact from tool loss or damage, tools cover helps maintain your business’s financial stability. 
  • Peace of Mind: Knowing that your tools and equipment are adequately protected provides peace of mind to business owners and operators. 

What to Consider When Assessing Your Tools Cover Needs:

  1. Assess Your Inventory: Take stock of all the tools and equipment essential for your business operations. Consider their value, frequency of use, and likelihood of loss or damage. 
  2. Evaluate Risk Factors: Identify potential risks that could lead to tool loss or damage, such as theft, natural disasters, or accidents. Assess the likelihood and potential impact of these risks on your business. 
  3. Consider Additional Coverage: Depending on your business’s unique requirements, consider adding optional coverage such as coverage for tools stored off-site, hire or rental tools, or coverage for specialised equipment. 

Example of a Tool Cover Insurance claim:

After a recent burglary at his mechanic shop, the client filed a Tools Cover Insurance claim to recoup his losses.

The policy covered the theft of his specialised equipment, including diagnostic tools, wrench sets, and power tools. The client provided the insurer with an inventory list detailing the stolen items and their values, supported by purchase receipts.

With the claim approved, the insurance company swiftly reimbursed the client for the cost of replacing the stolen tools, allowing him to replenish his inventory and resume operations without significant financial strain. 

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