Van Insurance Tools in Transit UK: What Is and Is Not Covered

What tools in transit cover actually is

Tools in transit, sometimes sold as tools in vehicle or goods in transit, is an additional section attached to a van policy. It is designed to pay for the trader's own tools and equipment when they are lost, stolen or damaged while being carried in or being loaded onto the insured van. It is separate from the motor cover that responds when the van injures someone or damages their property.

The distinction matters because many tradespeople assume a fully comprehensive van policy automatically protects their kit. It does not. Comprehensive cover relates to damage to the van itself, while the tools inside fall under the transit add-on, if one has been bought. Without that add-on, a break-in that empties the van is simply not a covered loss.

The FCA expects insurers to set out what is and is not included under ICOBS, so the policy schedule and key facts document should state the tools limit clearly. Reading those documents before relying on the cover is the single most useful step a trader can take.

What is typically covered

A standard tools in transit section usually responds to the following, subject to the policy limits and conditions:

• Theft of tools from the van following forcible and violent entry.
• Accidental damage to tools while in transit, depending on the wording.
• Fire damaging the tools while they are in the vehicle.
• Loss during loading or unloading in some policies, where stated.

Cover is generally limited to tools and equipment owned by the policyholder and used for the trade. Hired-in plant, customers' property and stock for resale are often treated differently or excluded, so a trader who carries any of those should check whether a separate section is needed. The amount paid is also capped by the sum insured, which is why setting that figure correctly is so important.

Some insurers settle on a new-for-old basis and others on an indemnity basis that deducts for wear and age. The two can produce very different payouts on a worn drill or saw, so the basis of settlement is worth confirming when the policy is arranged.

What is commonly excluded or restricted

The exclusions are where most tools claims fail. The most frequent restrictions include:

• Overnight theft from a van left on the road or an unsecured location, often excluded entirely between stated hours such as overnight.
• No forced entry, meaning a theft from an unlocked van or one left with windows open is usually not paid.
• Items left permanently in the van beyond the policy's stated overnight rules.
• Single high-value tools above the per-item cap, which are only partly covered up to that cap.

A common and costly trap is the overnight condition. Many policies will only pay an overnight theft claim if the van was locked, the alarm set, and ideally parked on a driveway or in a locked compound or garage. Leaving tools in a van parked on a street overnight can mean a theft claim is declined even though the add-on was in force.

Removing tools overnight wherever practical, or accepting that street-parked overnight tools may be uninsured, is the realistic response to these conditions. The wording, not the salesperson's summary, decides what is paid.

Setting the right sum insured

The sum insured is the maximum the tools section will pay, and it should reflect the full replacement cost of the kit normally carried. Two figures matter: the overall limit across the whole load, and the single-article limit that applies to any one tool. A trader carrying a 1,500 pound machine under a 500 pound single-item cap is under-protected on that item even if the overall limit looks generous.

Under-insurance can lead to a proportionate reduction. If a trader insures 3,000 pounds of tools but actually carries 6,000 pounds, an insurer may reduce a partial-loss payout in proportion to the under-insurance. Setting the figure to genuine replacement cost avoids that outcome.

A dated inventory listing each tool, its make, model, serial number and value, supported by receipts and photographs, makes claims faster and helps justify the sum insured. It also deters disputes about what was in the van at the time of the loss.

Reducing the risk and handling a claim

Insurers increasingly expect reasonable precautions. Fitting deadlocks, slam locks or an alarm, marking tools, registering them with a property database, and parking securely overnight all reduce the chance of a loss and help meet policy conditions. Some insurers reward these measures or make them a requirement of cover.

If tools are stolen, the usual steps are to report the theft to the police, obtain a crime reference number, notify the insurer promptly, and provide the inventory and any receipts. Photographs of the forced entry support the claim where a forcible-entry condition applies.

If the insurer declines the claim and the trader believes the decision is unfair, the complaint can be raised with the insurer and then referred to the Financial Ombudsman Service, which reviews general insurance disputes free of charge for eligible complainants.

Frequently asked questions

Are my tools covered by a comprehensive van policy?

Not automatically. Comprehensive cover relates to damage to the van itself. Tools need a separate tools in transit or goods in transit add-on, and without it a theft of tools from the van is not a covered loss.

Why was my overnight tools theft claim declined?

Most policies restrict or exclude theft of tools left in the van overnight, especially if it was unlocked, unalarmed or parked on the road. Check the overnight and security conditions in your wording, as those terms decide whether an overnight claim is paid.

What is a single-item limit?

It is the most the policy will pay for any one tool, separate from the overall load limit. A high-value machine above that cap is only covered up to the cap, even if the total sum insured is higher.

What happens if I under-insure my tools?

If the sum insured is lower than the true replacement value of the load, the insurer may reduce a partial payout proportionately. Setting the figure to genuine replacement cost and keeping an inventory helps avoid this.

What can I do if my tools claim is unfairly refused?

Raise a complaint with the insurer first. If it is not resolved, refer the dispute to the Financial Ombudsman Service, which handles general insurance complaints free of charge for eligible customers.