Does van insurance cover tools?
Recent figures show that £98 million worth of tools were stolen from tradespeople in 12 months alone. Theft from vans accounted for more than half of those cases.
By Alan Boswell Group
Despite van owners taking extra security precautions, statistics also reveal tool theft from vehicles is on the rise. Here, we look at whether van insurance will cover the cost of stolen tools and equipment and what you can do to minimise the risk of theft.
Does standard van insurance cover tools?
Standard van insurance doesn’t always cover the tools you keep in your van, as they’re considered separate contents. Not only that, if tool cover was an automatic feature, premiums in general would be higher to compensate for the increased risk of theft.
Some policies may offer limited protection but that will depend on the terms of your insurance policy. There may also be certain conditions you need to meet; for example, you might need a secure lockbox for tools.
What does carriage of own goods cover?
Carriage of own goods is a type of business van insurance. These policies allow you to transport work-related items in your van, such as, tools, equipment, materials, or stock.
Carriage of own goods typically doesn’t cover damage or theft of the goods themselves.
What are my options for insuring tools kept in my van?
Brokers and insurers will work with you to find the most appropriate insurance for your circumstances, but options to consider include:
Tools in transit insurance
These policies cover the cost of tools that are stolen, damaged or destroyed while they are in your van. It’s typically available as an add-on to business van insurance.
Policies usually provide cover up to a certain value with a cap the amount you can claim for a single item. For example, your total level of cover could be £10,000 and the most you can claim for one item may only be £3,000.
Tools in transit policies can often be extended to include overnight cover if it’s not practical to unload your van each day.
Standalone tools insurance
Another option is to buy a separate insurance policy for your tools. These policies may offer you more flexibility, for example, by providing cover for higher-value items or specialist tools.
As with tools in transit insurance, standalone policies will also set a maximum amount that can be claimed in total and per item.
You’ll need to bear in mind that having a separate policy will mean more admin, and you’ll have to manage this policy in addition to your business van insurance (which could be from a different insurer).
Business contents insurance
If you have contents insurance as part of your overall business insurance package, you may be covered for some items carried in your van. For example, business insurance generally covers you for items you temporarily remove from your office or premises, such as if you’re taking something away to be cleaned or transporting an item to an event.
What factors affect the cost of tool insurance?
A number of factors will affect your premium, including:
The level of cover you choose – high levels of cover generally mean higher premiums.
The type of tools you have – specialist or expensive tools can cost more to insure.
Your policy excess – a low excess can increase your overall premium and vice versa.
The type of van you own – vans with greater security features can help deter thieves and lead to lower insurance costs.
Where you live – you can expect to pay more for cover if you live somewhere with higher than average crime levels.
How your tools or van are stored at night – premiums are likely to be lower if your van or your tools are secured.
Your claims history – a recent claim within the last five years can increase insurance costs.
How can I secure my tools and lower insurance costs?
You can lower the risk of your tools being stolen by:
Installing an alarm or immobiliser.
Using a secure tool storage box.
Parking your van in a secure location overnight (a garage is ideal).
Marking your tools to identify them as yours.
Keeping an inventory of your tools and receipts.
What should I do if tools are stolen from my van?
If the unfortunate has happened and your tools have been stolen from your van, you should call the police to get a crime reference number, then call your insurer. Your insurer will usually ask you to take photos of your van and any damage that has been caused, and they’ll also want to see any dashcam footage. If there are any witnesses, it can also help to ask for their details.
If you have an inventory or photos of your tools, these can help your insurer deal with your claim more quickly. If you’ve also marked your tools with ID, it could also mean you get them back if they’re later found.
If you already have a policy with Alan Boswell Group, you can make a claim by calling 0203 794 9305.
Van insurance tailored to suit you
Choosing the right van insurance can be tricky, especially if you use your van for both personal and business purposes and want the reassurance of comprehensive cover, but that’s where we can help.
At Alan Boswell Group, we offer flexible cover – whether you own a transit, pickup, or splitter van, we can tailor policies to suit you.
Send an enquiry
FAQs
Overnight storage isn’t usually a standard feature in van insurance, but it can usually be added as an optional extra to tools in transit insurance.
Receipts, photos or a comprehensive inventory can all help demonstrate proof of ownership. Marking your tools is also worth doing as it could mean you get them back if they’re found.
This will depend on any terms set out in your policy. Common conditions include keeping your tools in a secure box and checking that doors and windows are locked when you’re parked up.