Is it worth insuring power tools for your business?
Protect your business from unexpected losses and disruptions with power tool insurance while minimizing the impact of unforeseen events.
Updated May 30, 2023.
If you own a construction or cleaning business that relies on tools and equipment to serve your clients, power tool insurance, also known as tools and equipment insurance, can provide coverage to protect you.
Businesses that rely on power tools and equipment can insure a wide range of devices depending on their needs. These power tools may include drills, nail guns, grinders and other specialized equipment.
If you're on the fence about insuring your tools for your business, think about these factors: the cost of your tools, the nature of your work and the level of financial risk you're able to handle.
Tools and equipment insurance can provide coverage for losses or damages to power tools and related accessories caused by events like theft, fire or accidental damage.
Here are a few reasons why business insurance and insuring power tools may be useful for your business:
- Protection against financial loss Power tools are often a significant investment for businesses, and they can be expensive to replace or repair if they're damaged or stolen. But insuring them can provide financial assistance and help minimize the impact on your bottom line if you face an unexpected loss.
- Minimize business interruption The last thing you'd want is to lose income or miss deadlines if your power tools are damaged or stolen. Some insurance policies can provide coverage for business interruption and help offset the financial impact of these disruptions, so you can focus on maintaining your work.
- Liability coverage Using power tools has some risks, like injuries or damage to third parties. Policies like errors and omissions insurance can help provide liability coverage in case someone is injured or the property is damaged due to your work.
- Contractual requirements If your business operates in a regulated industry or has contractual obligations with clients, you may need to carry insurance as a condition of your contracts.
Which tools can be covered by tools insurance?
Tools in your daily business operations can include almost all items used to do your work. Power tool insurance can help cover these, including:
- Handheld tools such as hammers and screwdrivers
- Power tools such as welders and electric drills
- Heavy equipment tools such as cement mixers
- In-shop equipment such as workbenches
- Business equipment such as laptops and mobile phones
» Want to know more? Here's how tools and equipment insurance can help
Insure your tools to help protect your business
We know that your business may rely on your tools and equipment, and the last thing you need is high costs to replace or repair those. That's where power tool insurance can help minimize financial losses and reduce the negative impact on your operations. That way, you can focus on your clients and tasks with peace of mind.
NEXT has licensed U.S.-based advisors that are available to help you if you have any questions. And with easy access to our services online, you can get an instant quote, buy your coverage and share your certificate of insurance in no time with the NEXT app.
