Last reviewed: June 2026 | Source: Financial Conduct Authority and the Association of British Insurers
TL;DR- Standard van insurance often excludes tools or limits cover to a low sub-limit such as 250 to 500 pounds.
- Specialist tool insurance covers theft from a vehicle, theft from a site and accidental damage.
- Cover for theft from a vehicle often requires conditions such as locks and overnight storage out of the van.
- Typical cover levels range from around 5,000 to 30,000 pounds depending on the trade.
- Average premiums often fall in the region of 150 to 400 pounds a year.
Key Facts
●Van insurance treatment of tools: Often excluded or sub-limited to 250 to 500 pounds
●Specialist cover includes: Theft from vehicle, site theft, accidental damage
●Common condition: Locks fitted and tools removed overnight
●Typical cover level: Around 5,000 to 30,000 pounds
●Typical premium range: Around 150 to 400 pounds a year
●Regulator: Financial Conduct Authority
For tradespeople, tools are the means of earning a living, and their theft or damage can halt work and cost thousands to replace. Many assume their van insurance covers their tools, but it often does not, or only to a small limit. Specialist tool insurance fills this gap, though it comes with conditions that affect whether a claim succeeds. This guide explains why van cover falls short, what tool insurance includes, the conditions to watch, typical limits and average costs.
Why van insurance often falls short
Standard van insurance is designed to cover the vehicle, not its contents, so tools left in a van are frequently excluded altogether or covered only up to a low sub-limit, commonly in the region of 250 to 500 pounds. For a tradesperson carrying thousands of pounds of equipment, this leaves a large gap.
Tool theft from vans is a common and costly problem, and the low sub-limits on van policies rarely come close to the real value of a full kit. Relying on van insurance alone can therefore leave a trader badly exposed if tools are stolen from the vehicle.
Because of this, many tradespeople take out separate tool insurance to cover the value of their equipment properly. Checking exactly what the van policy says about tools is the starting point, because the wording determines whether any cover exists at all and how much.
What specialist tool insurance covers
Specialist tool insurance is designed to cover the equipment itself across the situations in which it is at risk. This typically includes theft from a vehicle, theft from a work site, and accidental damage to tools, providing much broader and higher-value cover than a van policy sub-limit.
Cover can extend to tools owned by the trader and, in some cases, hired-in equipment, which is useful for jobs requiring specialist machinery on hire. Policies set an overall sum insured for the tools, and some apply single-item limits, so high-value items may need to be listed separately.
By covering theft from both vehicles and sites as well as accidental damage, tool insurance addresses the main ways a tradesperson can lose the use of their equipment. The breadth of cover and the limits vary between policies, so the wording should be checked against the trader's actual kit and working pattern.
Common conditions and security requirements
Tool insurance commonly comes with conditions that must be met for a claim to be paid, particularly for theft from a vehicle. A frequent requirement is that the van has adequate security, such as deadlocks or slam locks, and many policies require tools to be removed from the vehicle overnight and stored securely.
An overnight storage condition can mean that tools stolen from a van left loaded overnight are not covered, even though the policy includes theft from a vehicle. This is one of the most important conditions to understand, because failing to meet it is a common reason claims are declined.
Other conditions can include keeping records and proof of ownership of tools, marking equipment, and reporting theft to the police promptly to obtain a crime reference. Meeting these conditions is essential, as cover is effectively contingent on the trader following them.
Typical cover levels
Tool insurance is usually arranged with a total sum insured reflecting the value of the trader's kit, with typical cover levels ranging from around 5,000 to 30,000 pounds depending on the trade and the equipment carried. A trader with a modest hand-tool kit needs far less cover than one carrying expensive power tools and machinery.
Setting the sum insured accurately matters, because under-insurance can reduce the amount paid on a claim, while over-insuring wastes premium. Traders should value their full kit realistically, including items that are easy to overlook, and review the figure as they acquire more equipment.
Single-item limits within the overall sum insured mean that particularly valuable tools may need to be specified individually to be fully covered. Checking how the policy treats high-value items prevents an unwelcome surprise if one of them is stolen or damaged.
Average costs and what affects them
Premiums for tool insurance often fall in the region of 150 to 400 pounds a year, depending on the sum insured, the trade, the security in place and the claims history. Higher cover levels, higher-risk trades and areas with more theft tend to increase the premium.
The security measures a trader has in place can affect both the availability and the cost of cover, since insurers favour well-secured vehicles and proper overnight storage. Demonstrating good security and a clean claims record can help keep premiums down.
As with other insurance, the cheapest premium is not always the best value if the conditions are onerous or the cover is narrow. Comparing the cover, limits and conditions alongside the price gives a truer picture of what a policy offers a tradesperson.
Choosing a policy and providers
When choosing tool insurance, a trader should match the cover to the way they work: where tools are kept, whether they are left in a van, the value of the kit and whether hired equipment needs covering. The conditions, particularly around vehicle security and overnight storage, should be realistic for the trader's situation.
Several insurers and brokers specialise in trade and tool cover, and some offer it as part of a wider tradesperson policy alongside public liability and other covers. Bundling can be convenient, but the tool element should still be checked on its own merits.
Reading the policy wording, confirming the sum insured and single-item limits, and being sure the conditions can genuinely be met are the keys to cover that pays out when needed. A policy that looks cheap but imposes conditions the trader cannot meet offers little real protection.
Frequently Asked Questions
Does van insurance cover my tools?
Often not, or only to a low limit. Standard van insurance is designed to cover the vehicle rather than its contents, so tools are frequently excluded altogether or covered only up to a small sub-limit, commonly around 250 to 500 pounds. For a tradesperson carrying thousands of pounds of equipment, this leaves a large gap, which is why many take out separate specialist tool insurance. Always check what your van policy actually says about tools.
What does tool insurance cover?
Specialist tool insurance is designed to cover the equipment itself, typically including theft from a vehicle, theft from a work site and accidental damage, with much higher limits than a van policy sub-limit. Cover can extend to hired-in equipment in some cases. Policies set an overall sum insured and may apply single-item limits, so high-value tools may need to be listed separately to be fully covered.
Why was my tool theft claim refused?
A common reason is failing to meet a policy condition, especially for theft from a vehicle. Many policies require the van to have adequate security such as deadlocks or slam locks, and require tools to be removed from the vehicle and stored securely overnight. Tools stolen from a van left loaded overnight may not be covered even though the policy includes vehicle theft. Other conditions include proof of ownership and reporting theft to the police promptly.
How much does tool insurance cost?
Premiums often fall in the region of 150 to 400 pounds a year, depending on the sum insured, the trade, the security in place and the claims history. Higher cover levels, higher-risk trades and areas with more theft tend to increase the premium, while good vehicle security and a clean claims record can help keep it down. The cheapest premium is not always the best value if the conditions are onerous or the cover is narrow.
