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Business Equipment Insurance

Business Equipment Insurance

What is business equipment insurance?

If you're a tradesman, contractor, manufacturer or a small business owner, you’ll rely on specialised tools to run your business. So, you’ll need to be covered in the event of your equipment becoming damaged, lost or stolen. That way, you can replace or repair it quickly. This type of cover can be added as an extension to your business insurance policy

Do I need business tools insurance?

If your business relies on certain items of equipment or specialised tools to function, having this type of cover is essential. You’ll be able to replace or repair equipment straight away, minimising any disruption to your work. You can add this protection to your current insurance package:

What does business equipment insurance cover?

Adding this cover to your business insurance policy will protect your items against loss, damage and theft. Here are examples of situations where you’ll be protected:

  • Fault or breakdown of equipment
  • Malicious damage
  • Fire
  • Explosion
  • Storm
  • Flood
  • Earthquakes.

This policy will also cover members of your company when they’re abroad. A successful claim will reimburse you for the cost of any repairs or replacements.

You’ll need to add any portable equipment such as laptops, tablets, and camera equipment to your policy separately.

How much cover do I need?

Calculate the value of your equipment based on the cost of buying them new, regardless of whether you originally used a discount or bought them second-hand. Make sure your tools and equipment are valued accurately, otherwise you won’t be entitled to full compensation. If you over-value your equipment, you may even be accused of insurance fraud.

What are the limits and exclusions to business tools insurance?

As with all insurance policies, there are a few exclusions. Circumstances typically not covered within this policy are:

  • General wear and tear
  • Pre-existing faults in equipment
  • Damage during maintenance of equipment
  • Unexplained loss or disappearance of equipment
  • Virus or hacker activity
  • Wilful negligence
  • Terrorism
  • Loss by fraud or dishonesty of a member of the business (unless the loss is reported to the insurer within ten working days).

Check your policy documents for more information about exclusions.

Protect your business now - call us on 0800 970 0077 Our experts will compare quotes from the UK’s most trusted insurers and adapt your insurance to suit the needs of your business.