Risky Business

March 2013

People on Hand

At some stage in a tradesman's life, he is likely to have his work tools stolen. Added to that, loss of tools could occur as a result of an accident, the premises or vehicle containing his tools could catch fire, or a major storm could destroy them.


It could be one valuable piece of equipment, or an entire trailer load of work tools.


Please read below about the benefits of Tools of Trade General Property Insurance.

  Insurance News 


Tools of Trade General Property Insurance

The loss of valuable equipment is not only frustrating and expensive, but the costs don't necessarily end there. Without tools most tradesmen are unable to work. If you don't work, you don't earn income.


There are a number of different types of tools insurance policies available. The most appropriate tools insurance cover for tradesmen is a policy that covers tools and stock (cabling, light switches, landscaping supplies etc) which may be held at home, on-site, in a vehicle, and in transit.

Who does it affect?
Where would you be without your most powerful tool? When a crucial tool or piece of equipment is stolen or damaged, work grinds to a halt, right along with your ability to make money..

So many tradesmen take the risk, don't have tools insurance, and end up regretting it.

Cheaper than you think
Many tradesmen are surprised to know that the replacement cost for a tradesman's tools can be $10,000 or more.  It's a lot of money, and to spend that amount all at once is a very big ask.

Tools insurance is usually not taken out by tradesmen until they realise the benefits and with tax deductible annual premiums starting from just $180 for $5,000 worth of tools insurance cover, it's crazy not to have it.

You also need enough cover
It is good practice to keep a list of your tools on file which can be of enormous benefit if you need to claim. Over the years tradesmen accumulate tools and they often don't keep tabs on the value of their tools. Sometimes when we start asking about the types of tools they have, they begin to realise just how much gear they've collected and the potential cost involved in replacement if their tools are stolen or damaged.

Most policies have two sections, a Specified Items section and an Unspecified Items section.

It doesn't cost any more to specify the value of particular tools, but if they are unspecified items insured, the insurer will only pay a maximum amount per item regardless of whether the replacement cost is much higher. This varies between insurers from as low as $1,000 per item to $2,500 per item. This is important to check.

Tools insurance excesses can be from $100 to $500 depending on the insurer.

The tools insurance policy should also specify replacement of the tools at replacement cost value, rather than on existing values.  Stock would be replaced at cost price.  

Finally, no tools insurance policy covers every circumstance. For example, tools are not normally covered when they are left in the open or on site. It is very important to understand what you are covered for, what is excluded and what excesses apply.


Potato Sack
Exercise for Over 50's


This may seem a little daunting to start with, but if you apply yourself you may find that it's not as difficult as you think. 

Begin by standing on a comfortable surface, where you have plenty of room at each side.
With a 5kg potato sack in each hand, extend your arms straight out from your sides and hold them there as long as you can. Try to reach a full minute, and then relax.
Each day you'll find that you can hold this position for just a bit longer.
After a couple of weeks, move up to 10kg potato sacks.
The goal is to eventually get to use 25kg sacks, and be able to hold your arms out straight for a full minute. 

After you feel confident at that level, try putting a potato in each sack.


See you next month.




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