Tradie Insurance: Keeping your tools safe

Without them you’ve not got a business, so isn’t it time you kept your tools safe by giving them the protection they deserve?

Tradie Insurance claims: Tools

Sixty per cent of tradies have experienced tool theft during their careers, so it’s no surprise that when it comes to tradies’ insurance claims, one area stands out: tools.

According to stats from Traderisk.com.au, 45 per cent of tradies’ claims are a result of tool theft. In reality, the percentage of tool theft will be far higher – Traderisk says nowhere near 45 per cent of its clients take out tool insurance, so a significant number of thefts will go unclaimed on insurance.

Tool theft costs the construction industry in Australia $650m per year, and less than 25 per cent of stolen tools are ever recovered.

Keeping tools and equipment safe is, therefore, a massive challenge for any electrician. If you lose them, you can’t work – simple as that.

It’s unrealistic to take everything out of a fully kitted out work van every night, and when you’re working on site it’s sometimes difficult to keep an eye on every tool you’ve got out.

The vast, vast majority of tools claims are made as a result of theft – only six per cent result from damaged tools (typically fire, vehicle collision or rollover).

Of theft claims, 48 per cent come from forced entry, 20 per cent from padlocks being cut, 16 per cent from windows being smashed and 11 per cent from vehicle theft. The remaining claims were classified as ‘other’, while the average claim totals more than $4000.

It just goes to show that tool thefts aren’t limited to the ‘easy pickings’ and thieves don’t rely on tools lying around unguarded. They’re prepared to break into your property, steal your vehicles – whatever it will reasonably take.

Keeping your tools safe is a challenge that’s not going to go away, either. Data from AMI Insurance in New Zealand shows claims for stolen tools have risen by 63 per cent over the past two years.

As we all know, good tools come with a pretty hefty price tag, and therefore they’re always going to be attractive to thieves – but there are a few things you can do to minimise the risk.

It’s worth it – after all, it’s not just the value of the tools themselves at stake, but the lost work, too.

How are tradies’ tools being stolen?

48% – forced entry, 20% – padlocks cut, 16% – windows smashed, 11% – vehicle theft, 5% – other

$4000 – Average cost of tradies’ tools claims

Ten tips to protect your tools

DO THE ADMIN SIDE OF THINGS WELL

Bit of a boring one to start with, but it’s important to have good records of everything you own. Receipts, photographs, descriptions and serial numbers should all be recorded somewhere safe. When you’ve got a few people using equipment day in, day out, keeping an inventory of what the business owns is a smart thing to do anyway, but by keeping the pictures and receipts, you can help speed up any insurance claims too.

KEEP THINGS LOCKED UP

An obvious one, but you’d be surprised at how many people don’t secure their tools as well as they should. Toolboxes should be properly fixed to your ute. The padlocks should be strong and robust – if it can be cut by a bolt cutter, it’s not good enough. Don’t forget to check the hinges on tool boxes too – if they’re a bit flimsy or can be picked apart, you’re giving people an easy ‘in’.

DON’T ADVERTISE YOUR TOOLS!

Sometimes, leaving your ute on the street overnight is unavoidable, particularly if you live in the city, but if it’s at all possible, always park your work vehicle containing your tools in a garage. Failing that, park it in your driveway or the side of the house, and block it in with another car, if possible. If you’ve got to leave it in your driveway, make sure you’ve got security cameras set up to catch anyone snooping about. If you have to leave it on the street, follow the usual safety precautions, such as parking it in a well-lit spot.

MARK YOUR TERRITORY

All we can do is try to make it as difficult as possible for thieves to steal our tools – we’re never going to be able to reduce the risk completely. So, marking your tools is a good habit to get into. Putting your own stamp on your tools is always useful, especially on site when things can go walkabout. The police advise engraving your driver licence number onto your tools so they can be easily identified. If you want to take things one step further, tech such as data dots can help. Data dots are sprayed onto your tools and the info is stored on a database. If the tools are stolen and then recovered, they can be scanned and returned to you. Think of it like a pet microchip for tools. UV pens can be a useful alternative – just make sure you use a good one. The cheapo products aren’t any good.

CAUGHT ON CAMERA

Cameras around your property are a good idea to deter thieves generally – cameras in your van can catch crims in the act, and even if you don’t prevent them stealing your gear, you can stop them doing the same to other people.

USE GPS TRACKERS

GPS trackers can be installed on tools of all different sizes, so if they’re nicked, you can track down their whereabouts.

OFFER A REWARD

On your tools, you could engrave a reward offering – it might help get them back into your hands should they go missing.

PERSONALISE THEM

A great idea is to give your tools a unique look. Use fluorescent spray paint and childish stickers and graphics – all sealed by a clear coat – to give your tools a very individual look. They’re not going to be anywhere near as attractive to thieves as they’d be very hard pressed to sell them on – and they’re not going to be ‘accidentally’ picked up on site, either.

COVER BRAND NAMES

Certain brands are more appealing than others – so a bit of black tape over brand names can reduce the instant appeal, too.

INSURE THEM

If all else fails, it’s smart to have some insurance – that way, if your tools are taken, at least you can get back to work without losing a significant amount of money at the same time. Don’t assume your tools are covered under a general contents policy – there could be strict limits, if they’re covered at all, so a standalone policy is something worth investigating.