Tool insurance NZ: cover for stolen or damaged tools

Tools are a tradie's livelihood, and they're also the single most common thing to get stolen or wrecked. Tool insurance - often called "tools of trade" cover - replaces your gear so a break-in to your van doesn't stop you working. This guide explains what tool insurance NZ tradies buy actually covers, the exclusions that catch people out, and how to value your kit. It usually sits alongside public liability insurance in a tradie policy.

This guide is general information for NZ trade businesses, not financial or insurance advice. Cover, limits and exclusions vary between insurers - always read the policy wording and consider talking to a licensed insurance broker or financial adviser before you buy.

What tool insurance covers

Tools of trade cover protects the equipment you use for work against:

Theft - from your vehicle, a locked site box, or the job site
Accidental damage - dropped, crushed, or damaged on site
Loss in some events, depending on the policy

Cover usually applies whether the tools are hand tools, power tools or larger portable equipment, up to the total sum insured you choose.

The exclusions that catch tradies out

This is where claims succeed or fail, so read these carefully:

Theft without forced entry. Many policies won't pay for tools stolen from an unlocked vehicle or where there's no sign of forced entry. Lock up, every time.
Tools left in a vehicle overnight. Some policies limit or exclude overnight theft from vehicles, or cap the amount. Check the wording.
Unattended items. Gear left out on site unattended may not be covered.
Per-item limits. A policy with a $20,000 total might still cap any single item at, say, $2,000 - a problem if you own an expensive laser level or survey gear. List high-value items separately if needed.

How to value your tools

Insurers want a realistic sum insured. Walk through your van and site boxes and total up replacement cost - not what you paid years ago, but what it'd cost to buy again today. Tradies routinely under-insure because the kit adds up quietly over time. Keep a list with serial numbers and photos; it makes claims far faster.

How to get the right cover (and a fair price)

Insurance is easy to over- or under-buy. A few practical steps:

Get two or three quotes. Premiums and exclusions vary a lot between insurers for the same trade. Compare like-for-like cover, not just price.
Use a broker for anything complex. A licensed insurance broker can match cover to your trade and contracts - useful once you're running jobs with contract works or higher liability limits. Brokers are usually paid by the insurer, not you.
Read the exclusions and the excess. The exclusions decide whether a claim actually pays out. Check the excess (what you pay per claim) and any per-item limits.
Match cover to your contracts. If a main contractor, council or commercial client requires a specific limit (often $1m-$5m public liability), your policy has to meet it before you can start.

Tools cover is often bundled with public liability in a tradie package - compare buying them together versus separately.

Frequently asked questions

Are my tools covered if they're stolen from my van?

Usually only if there's evidence of forced entry and, on some policies, not overnight. Check your policy's theft-from-vehicle terms closely - this is the most common reason a tool claim is declined.

Does home contents insurance cover work tools?

Generally no, or only minimally. Tools used for business are usually excluded or capped under a home contents policy, which is why dedicated tools of trade cover exists.

How much tool cover do I need?

Enough to replace your entire kit at today's prices. Total up replacement cost across your vehicle and site boxes, and watch for per-item limits on expensive gear.

Are hired or leased tools covered?

Not automatically. If you hire equipment, check whether you need to extend your policy to cover hired-in plant - you can be liable for it while it's in your care.

Sources

Update log

24 June 2026 - Published. General information reviewed against New Zealand industry and government sources (see Sources above).

Last reviewed: 24 June 2026.