Tools And Equipment Insurance Ontario

Tools And Equipment Insurance 

There are plenty of professionals that use specialized tools in their day-to-day duties. This is especially true with those working in trades and construction, whose jobs are often improved remarkably by using these great little gadgets. There are also a lot of creative professionals whose skills are fully unlocked when they have access to the latest tech. However, as handy as these miracles of technology are, plenty of jobs have evolved to the point where some tasks are impossible without these expensive items. This means that if certain tools and equipment were do be damaged or destroyed by an insured peril suddenly without a backup, you can be left in quite a pinch. Needing to replace these out of pocket can be devastating to your bottom line. Tools and equipment insurance is a line of protection that prevents you from needing to pay for this out of pocket. 

What Is Tools And Equipment Insurance? 

Tools and equipment insurance is an aspect of business insurance in Ontario that allows businesses to have financial protection for their most valuable, specialized equipment. Similar to how commercial general liability insurance protects companies against liability charges and commercial auto insurance protects a company vehicle, a company's most valuable equipment can be protected with tools & equipment insurance. While something such as a standard hammer, screwdriver or wrench can easily be replaced out of pocket and isn't worth claiming, you likely have much more specialized equipment that would cost a lot more if it got damaged, stolen, or was otherwise unusable. 

A professional camera, a power tool, a set of specialized equipment for any trade or any other hard-to-acquire piece of equipment can easily cost a few thousand dollars to replace, which can be costly for anybody, especially those just starting out. Construction sites often have plenty of costly items that are exposed to accidental damage and possible theft. Tools and equipment insurance can cover these losses and more, meaning there is no need to pay such a heavy expense out of pocket, letting your business continue unimpeded. 

Who Needs Tools And Equipment Insurance? 

Anybody who uses expensive, specialized tools as part of their profession could use the protection provided by a tools and equipment insurance policy. Tradespeople, anyone in the construction industry, or anyone who uses heavy equipment in their role should get the protection of tools and equipment insurance due to the many perils it protects against. Also, no matter how good of a job you do in trying to prevent the theft of tools, materials and equipment, there's always the possibility that something could go wrong. There's also expensive construction equipment you don't want to risk needing to replace out of pocket. With tools and equipment insurance, you'll be covered if any of these events happen. 

Do Contractors Need Tools And Equipment Insurance? 

Absolutely! Contractors can include tools and equipment insurance as part of their contractors insurance policy. It is common for professionals such as plumbers, electricians, roofing contractors, HVAC technicians, and many, many others to require highly specialized contractors tools to do their job correctly. Many pieces of contractors equipment or tools can easily be added to an existing insurance policy or be included in a brand-new one. If you would like to know how the mechanisms that you use will fit into your contractor insurance policy, or would like a tools and equipment insurance quote, it is recommended that you speak with your Morison Insurance broker. 

What Type Of Equipment Does Tools And Equipment Insurance Cover? 

Tools and equipment insurance can cover a wide range of costly items that could cause heavy financial losses if they need to be replaced out of pocket. It can cover the cost of replacing stolen items or items that fall apart beyond repair. This includes construction equipment, expensive tools used by contractors, and much more. For insurance purposes, tools are defined as items costing at or below $2500, with equipment being defined as anything costing more than that. Some examples of tools & equipment that such a policy could cover include: 

• Nail guns. 
• Power tools and hand tools such as power drills. 
• Heat Guns. 
• Multi-Tools. 
• Power saws, leaf blowers and other outdoor equipment. 
• Construction equipment such as bulldozers and backhoes. 
• Cameras, drones, and other filming or photography equipment. 
• Gardening equipment such as shovels, wheelbarrows, rakes and more. 
• Construction tools such as hammers, saws, crowbars and similar items. 
• Personal protective equipment, such as knee pads, hard hats, gloves, and similar devices. 
• Business equipment, such as highly specialized stationary. 

Please note that these are not all items covered by tools and equipment insurance. A very broad range of items are covered. If you would like to know if any of the devices you use for your business would be protected by a proper tools & equipment insurance plan, or would like a tools and equipment insurance quote, it is best that you speak with your Morison Insurance broker, and they will be happy to let you know. 

What Does Tools And Equipment Insurance Not Cover? 

While tools and equipment insurance does a good job of covering its policyholders in a wide range of scenarios while also insuring several different types of businesses, there are situations where it cannot reimburse certain claims. These situations include the following: 

• Situations where the tools & equipment in question were damaged by wear and tear and reached their expected lifespan. 
• Situations where damage was intentionally done by the policyholder. 
• Times when the damaged tool or equipment was not mentioned or included in the policy.  
• Any time the incident that occured is explicitly stated as not being covered in the policy. 

 Please note that these are not the only situations where your tools and equipment insurance might not be able to cover your claim. If you would like to know more about how to avoid being stuck in such a position, it is recommended that you speak with your Morison Insurance broker, and they will be happy to let you know. 

What's The Difference Between Tools And Equipment Insurance And Equipment Breakdown Insurance? 

Even though these two types of insurance seem similar on the surface and often protect the same equipment, they protect it from different threats. The main difference between these two types of coverage is that tools and equipment insurance protects the policyholder in cases where the damage is caused by something external. This includes weather damage, a third-party dealing damage to the device, theft, and similar threats. Equipment breakdown insurance is commercial insurance designed to protect these devices from internal threats, such as unexplained engine malfunctions, power surges, electrical breakdowns, motor burnout, operator error, and similar threats. 

As a result, it is often recommended that to ensure you are protected from all threats, you should include both tools and equipment insurance, as well as equipment breakdown insurance when dealing with more complex, expensive equipment. If you are wondering if this dual-layer protection is right for you, it is best to speak with your Morison Insurance broker. 

 Are My Tools And Equipment Insurance Covered Under My Commercial Property Insurance? 

It depends. Commercial property insurance will be able to protect any adequately insured tools and equipment while they are being stored at the insured location if the policy contains commercial contents insurance. This is very handy if you store your stuff on your property while not working or if your job site is also where you store your insured items. This provides an excellent layer of protection against perils, such as theft, that often occur when you cannot stop the perpetrator. It also could be a good layer of protection for someone who remains in their set location, such as a studio photographer. However, there are still a few reasons why you would likely want to pick up tools and equipment insurance to protect your stuff. 

The first is that your company might not have an official physical location. If you are, for example, an electrician who stores all their stuff in your vehicle and doesn't rent out any particular office space, you may not have commercial property insurance, leaving your valuable items exposed to potential loss. 

A good reason to pick up tools and equipment coverage, even if you do have a physical location, is that you will want to protect your items while travelling. For example, let's say you own a roofing business and have a physical location where your stuff is stored. While your commercial property insurance will protect your items while they are stored on location, without a proper tools and equipment policy included as part of your coverage, your valuable items will be vulnerable while you and your employees are out on a job. If a piece of equipment breaks, is damaged by the weather or falls off the roof while you're working, your policy won't protect you without the proper tools and equipment coverage. In summary, tools and equipment coverage is needed to protect your items while you and your employees are out on a job. 

What's The Difference Between Tools And Equipment Insurance And A Warranty? 

The main difference is that tools and equipment insurance is more all-encompassing than a standard warranty and will cover a broader range of situations. Warranties often do not cover situations such as user error, which insurance policies usually do. Warranties also frequently end before the life of the product is over, meaning that it could run out before the tool or equipment in question is damaged and needs a claim made on it. Also, warranties don't cover damage done to a business as a result of a breakdown, whereas insurance does. The additional coverage provided by an insurance policy is often much more thorough than a simple warranty. 

How Much Does Tools And Equipment Insurance Cost? 

There is no set cost to tools and equipment insurance coverage. This is because there are so many variables involved in the cost. Not only is each industry different, but two organizations within the same industry can also face vastly different risks. In addition, a single potential policyholder will almost certainly get a different tools and equipment insurance quote from every insurance company they go to because each company will weigh each risk differently. Here is a list of many of the factors that could potentially impact your tools and equipment insurance quote: 

The industry risks you are exposed to. 

• The size of your company. 
• The tools and equipment that you would like to insure. 
• The level of experience you have in your industry. 
• Any safety precautions you and your company take to reduce the risk to your inventory. 
• Your location. 
• The amount of coverage you desire. 
• The clients that you serve. 

Please note that this is not a complete list of factors, and there are more. If you would like to know more issues that could impact your tools and equipment insurance quote, please speak with your Morison Insurance broker, as they will help you work through your coverage options and find the best protection possible. 

How Can I Lower My Tools And Equipment Insurance Quote? 

There are many ways you can lower your tools and equipment insurance rates. Many of them are listed below: 

• Take care when maintaining your equipment. 
• Avoid making claims on small losses to keep your claims history clean. 
• Increase your deductible. 
• Increase workplace safety awareness to decrease the chances of your equipment being damaged in an accident. 

Please note that these are not the only ways to lower your tools and equipment insurance quote. If you would like to know more ways, speak to your Morison Insurance broker, who will be happy to help you. 

Where Can I Get A Tools And Equipment Insurance Quote? 

You can get a tools and equipment insurance quote at Morison Insurance. Morison Insurance is a family-run insurance brokerage that treats its clients like an extension of that family. With over 100 years of history serving the people of Ontario, you can count on us to get you not just the tools and equipment insurance protection you deserve but also to meet all of your business insurance and personal insurance needs. Get started today by calling 1-800-463-8074 or by filling out an online application with the form below. You will be glad you did!