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Fleet & Commercial have reported to us that they have seen an influx of “Theft of Tools” claims recently, not just from CAI members but from across their commercial client base.

As “Theft of Tools” is one of the biggest areas insurers are seeing claims on, they do apply quite strict terms and conditions, to enable companies to make a valid claim, and if they are not strictly adhered to then the claim may be rejected. Many policies will exclude claims from vehicles overnight, from a vehicle without added security or if the vehicle is not kept in an overnight compound.

Therefore, we suggest all members to review their Tools in Transit insurance to make sure they are covered for the correct amount and to make sure they are aware of the conditions that will apply. Certain items, such as Analysers for example, are more than likely to be valued higher than a single article limit under a standard policy will allow for.

Areas to review

  • Are you comfortable the full value of your tools are insured? If you are not insuring for the correct value insurers may apply the condition of “Average” if you are underinsured, leaving you with a lower than expected settlement.
  • Have you checked the single article limit on your policy? Do you have any items valued over this amount? If so they would need to be specified on your policy and the appropriate premium paid. 
  • Are you aware of certain conditions that may apply such as overnight exclusions or cover being excluded if the vehicle is not kept in a locked compound overnight?
  • Have you informed your insurer as to who owns the tools? There are sometimes different categories for Employee Tools and Company/ Director owned Tools.
  • Insurers expect to see “Violent or Forceable Entry” to pay a valid claim so remember to always lock your doors and set your alarms
  • Remember to keep receipts and proof of purchase/ ownership as insurers will require you to submit these in the event of a claim

If you are unsure of your cover please speak to your insurance broker or contact Fleet and Commercial on 01993 843040 who will undertake a full review.

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