Why is tool insurance necessary?
If your tools are lost, stolen or damaged, everything comes to a standstill. Not only is it impossible to complete the job you're being paid for, but everything you have lined up is either going to be postponed or potentially lost if you can't provide the service you have promised your clients. The only options will be to either dig into your own funds and buy replacements, or worse still, borrow the money and pay interest as well.
As any tradie knows, tools don't come cheap. Depending on what line of work you're in, you could have thousands of dollars tied up in equipment. This could include essential cordless power tools, hand tools, cases and benches - or machinery such as bobcats, excavators and generators. Even communication devices such as computers, tablets and mobile phones are vital and will be sorely missed.
Add all that up and you're looking at serious money, which you may not have if you're part of a small business. Even if you do, it will take valuable time and effort to source and replace every item you lose.
This is where tool insurance comes in. For just a few dollars a week, you can cover yourself against the loss, damage or theft of your equipment and have them replaced in a short period of time if need be.