Best Tool Insurance UK 2026

UK tradespeople rely on their tools to earn, and tool insurance covers the cost of replacing them after theft, fire, or damage, subject to strict security conditions. This guide reviews six UK routes to tool insurance, comparing what is covered, the overnight and transit conditions that decide most claims, and how to verify a provider, using GOV.UK, legislation, Association of British Insurers material, and the FCA Register. Kael Tripton does not provide quotes, does not route enquiries to brokers, and does not earn commission from any provider mentioned.

How tool insurance works in the UK

Tool insurance, often sold as part of a wider tradesman policy, pays to repair or replace work tools after an insured event. The headline cover is theft, but it usually applies only where there are signs of forced entry, alongside cover for fire and accidental damage depending on the policy. The product matters because tool theft is a persistent problem for UK tradespeople, serious enough that Parliament passed the Equipment Theft (Prevention) Act 2023 to tackle the theft and resale of tools and equipment.

The conditions decide most claims. Cover for tools left in a vehicle overnight typically requires the vehicle to be locked and secured, with alarms or immobilisers set and tools hidden from view. Some policies require tools to be removed if the vehicle is not used for the business for several consecutive days. Leaving tools in a vehicle without secure parking or the required security measures can void the claim entirely.

Tools in transit cover extends protection while tools are being carried between sites. Whichever route a tradesperson chooses, the firm arranging or underwriting the policy must be FCA-authorised, verifiable on the FCA Register at register.fca.org.uk, with disputes referable to the Financial Ombudsman Service once the insurer's complaints process is complete.

Providers compared at a glance

Tool cover focus reflects each provider's published documentation. FCA reference numbers are taken from the Financial Conduct Authority Register, accessed June 2026. Where a brand trades under a different legal entity or an intermediary, confirm the authorised firm on the Register.

Tradesman Saver

Who Tradesman Saver is

Tradesman Saver is a specialist tradesman insurance scheme. As it trades under an arranging entity, buyers should confirm the authorised firm on the FCA Register before purchase.

What the policy covers

Tradesman Saver tool cover generally includes both overnight cover and tools in transit, so tools left in a secured vehicle overnight remain protected subject to the security conditions. Cover sits within wider tradesman packages alongside liability options.

Notable exclusions

Theft without forced entry, tools left in an unsecured vehicle, and breaches of the overnight security conditions are typically excluded.

Policy limits and excess

Tool sums insured and per-item limits are set when the policy is arranged. Excess applies per claim.

Who this policy suits

Sole traders and small firms who want overnight and transit tool cover bundled with liability.

Rhino Trade Insurance

Who Rhino Trade Insurance is

Rhino Trade Insurance is a specialist tradesman insurance provider. Confirm the authorised firm on the FCA Register before purchase.

What the policy covers

Rhino includes tools in transit cover, with overnight storage of tools in a locked and securely parked vehicle covered subject to conditions, positioned as standard rather than a paid add-on.

Notable exclusions

Theft without forced entry, unsecured vehicles, and breaches of the security conditions are excluded, in line with standard wordings.

Policy limits and excess

Tool limits and excess are set in the policy documentation based on the cover chosen.

Who this policy suits

Tradespeople who want a low entry cost with transit and overnight tool cover included.

Direct Line for Business

Who Direct Line for Business is

Direct Line for Business is a brand of U K Insurance Limited, authorised by the FCA under reference 202810. It sells tradesman and business cover directly.

What the policy covers

Direct Line for Business includes tools and business equipment cover within tradesman policies. For theft from a vehicle overnight, the vehicle must be secured at all entry points with alarms or immobilisers set and tools hidden from view, and removed if the vehicle is unused for the business beyond a stated number of consecutive days.

Notable exclusions

Theft without the required security, tools left in view, and breaches of the vehicle conditions are excluded.

Policy limits and excess

Tool and equipment limits are set in the policy schedule. Excess applies per section.

Who this policy suits

Tradespeople and SMEs who want to buy tool and liability cover directly from an insurer.

Simply Business

Who Simply Business is

Simply Business is an FCA-authorised insurance intermediary that arranges cover from a panel of insurers. Confirm the authorised firm and underlying insurer on the FCA Register before purchase.

What the policy covers

Simply Business arranges tradesman policies that can include tools cover, with overnight and transit terms set by the chosen insurer. Cover is selected alongside public and employers' liability.

Notable exclusions

Exclusions follow the underlying insurer's wording and typically include theft without forced entry and unsecured vehicles.

Policy limits and excess

Tool limits and excess depend on the insurer and cover selected at quotation.

Who this policy suits

Traders who want to compare tools and liability cover across several insurers through one intermediary.

Aviva

Who Aviva is

Aviva Insurance Limited is authorised by the FCA under reference 202153 and offers tools cover within its commercial and tradesman policies.

What the policy covers

Aviva includes tools and business equipment cover within combined commercial policies, with theft, fire, and accidental damage options subject to the security conditions in the wording.

Notable exclusions

Theft without forced entry, unsecured vehicles, and risks outside the chosen sections are excluded.

Policy limits and excess

Tool sums insured and excess are set in the policy schedule.

Who this policy suits

Established trade businesses that want tools cover within a broader commercial policy.

Zurich

Who Zurich is

Zurich Insurance Company Ltd is authorised by the FCA under reference 203093 and includes tools cover within its tradespeople and commercial policies.

What the policy covers

Zurich tradespeople policies can include tools and contract works cover, with theft and damage subject to the security conditions in the policy wording.

Notable exclusions

Theft without forced entry and breaches of vehicle or site security conditions are excluded.

Policy limits and excess

Tool limits and excess are confirmed in the policy schedule.

Who this policy suits

Tradespeople and SMEs who want tools cover within a combined trade or contract works policy.

How to compare tool insurance objectively

Total up the replacement value of your tools and set the sum insured to cover a full loss, not a partial one, as underinsurance is a common reason claims are paid only in part. Check the per-item limit too, because high-value power tools can exceed a single-item cap.

Read the overnight and transit conditions closely, since they decide most disputed claims. Look for the forced-entry requirement, the security measures needed for a vehicle left overnight, and any rule about removing tools when the vehicle is unused for several days. Where you store tools and how you secure them often matters more than the headline price.

Confirm the insurer or intermediary on the FCA Register before buying, and keep receipts and serial numbers to support a claim. If a claim is later declined and you disagree, eligible complaints can be escalated to the Financial Ombudsman Service once the insurer's complaints process is complete.

Frequently asked questions

Does tool insurance cover theft from my van overnight?

It can, but usually only if the vehicle is locked and secured with alarms or immobilisers set and tools hidden from view, and there are signs of forced entry. Some policies also require tools to be removed if the vehicle is unused for the business for several consecutive days.

What does tool insurance actually cover?

Tool insurance pays to repair or replace work tools after insured events such as theft, fire, or accidental damage, subject to the policy conditions. Theft cover typically requires signs of forced entry.

Why was the Equipment Theft (Prevention) Act 2023 introduced?

The Act was introduced to tackle the theft and resale of tools and equipment, which is a recognised problem for UK tradespeople. It reflects how seriously tool theft affects the trades.

Can leaving tools in my van void my cover?

Yes. Leaving tools in a vehicle without secure parking or the required security measures can void a claim entirely, because the policy conditions for overnight vehicle storage have not been met.

How do I check a tool insurer is authorised?

Search the firm's name or reference number on the FCA Register at register.fca.org.uk. The Register shows the authorised legal entity behind a brand or scheme and the activities it is permitted to carry out.

What if my tool insurance claim is rejected?

Use the insurer's internal complaints process first. If you remain dissatisfied, you can refer an eligible complaint to the Financial Ombudsman Service, which independently reviews disputes between smaller businesses and FCA-regulated firms.