Key points

• Theft claims for tools and other equipment tend to spike ahead of the holiday season.
• Losing valuable tools and equipment can be devastating for a business.
• Protecting yourself with good cover is one way to stop this from happening.
• This article offers up tips for avoiding underinsurance and other pitfalls.

Why does tool theft spike over the holiday season?
If you work in a trade, you know the lead up to Christmas is a hectic time.

Everyone wants their project finished before the holiday season, and you’re working hard to get the jobs done. We often see a spike in theft and accident claims over this time.

It makes sense. When you’re working long hours and focused on tight turnarounds, you’re more likely to be distracted, leave tools unsecured or fail to notice a dodgy person onsite. These conditions also make accidents more likely to happen.

How can I protect my tools from theft?
A major theft or accident can be devastating for a business, which is why it’s so important to be covered. You also need to be covered the right way. This is because if you’re underinsured, you’re not going to recover the full value of what has been stolen.

Getting robbed and not having the right level of cover can be absolutely heartbreaking. It also doesn’t have to happen. These simple steps are designed to make sure you don’t get caught out.

Steps for protecting tools from theft

1. Keep an up-to-date inventory

If your insurer doesn’t know what you have, they can’t cover you adequately for it. That means you’re underinsured and won’t get paid out the full amount if you experience a loss.

So, make a list of all of your assets. Be sure to include a photo of each asset, as well as a serial number and value. This list will be relied on by your insurer to make sure you’re covered for the right amount.

Hot tip: Make a note in your calendar to update the list regularly, or even better, as soon as you get new equipment (always keep receipts). Then send this updated list to your insurer.

2. Make sure your tools are safe

Thieves love busy periods when people are distracted. They also love it when business owners go on holiday and leave their gear at a worksite or unlocked in a shed. This is why we recommend investing in good security for your machinery and equipment. Consider locking equipment up in a heavy-duty tool box or garage and if they’re onsite, keeping it out of sight.

Hot tip: Stealing is an opportunistic crime, so make it as difficult as possible for someone to steal your tools.

3. Talk to your insurer

Working out what level of cover is right for you can be tricky. But you don’t have to do it yourself. So contact your insurer to find out what cover matches you best. Good insurers won’t mess you around. They’ll recommend a policy that aligns with your needs and covers you for all the important stuff. They can also help you adjust your policy, if your business changes or you need to update your inventory list.

Hot tip: We can take a look at your existing cover and let you know if it needs any updates. If you don’t have cover yet, we can recommend options that will work for you.

4. Make plans for slow periods

When work is busy it can be easy to forget that things slow down over the actual holiday period. All of those people who were desperate to have their job finished are now enjoying the downtime of the season, and most people aren’t interested in starting new projects. This is why it’s important to plan for the slower periods, by putting away extra funds as a buffer.

Hot tip: Put a percentage of every invoice into a high interest earning safety net account, which can be dipped into during slower periods.

Need tools insurance?
Contact us about securing tools insurance for your business. We’ll make sure you get cover that matches your budget, and your needs. And we’ll be there for you if you ever have to make a claim. Get a quote or get in touch here.