Insurance For Tools At Work

[Mr.Smoke]

This is a question for technicians and others who have their own tools at work totalling multiple thousands of dollars in value.

Do you have insurance coverage on your tools at work? If so, how much is your premium and what amount of replacement value does that provide for you? Is coverage through your employer, house/renters insurance or through a standalone policy?

My employer is looking into offering coverage but I'm still waiting to hear back but also looking at standalone policies too. I don't have home/renter insurance since I'm currently "living with my mother" but I stay elsewhere and have all my personal belongings factored into her rental policy.

Anyone in Canada with standalone coverage (not a rider on home/renter policy or covered by your employer) would be awesome to hear from as that is more comparable to my situation.

Still going through my tools and determining rough replacement costs on everything but I'm guessing it will be somewhere around twelve to fifteen thousand dollars with my new box I get in a few weeks factored in. Sorry for the length of the post, I try and include/explain all useful details.

 

[2ndGearRubber]

I considered, but the price of premiums was too high, vs. the coverage. I was looking for very roughly 50-100k of coverage, which cost around $500-$1000/year from a company called pro-tec.

I wouldn't trust an employer to insure your tools. I would expect to sue if tools/boxes where severely damaged by coworker negligence, like someone driving a car into the box.

 

[Kscardsfan]

Have you talked to your agent about it? They might have some options or be able to underwrite another companies policy for your tools.

 

[Mr.Smoke]

I considered, but the price of premiums was too high, vs. the coverage. I was looking for very roughly 50-100k of coverage, which cost around $500-$1000/year from a company called pro-tec.

I wouldn't trust an employer to insure your tools. I would expect to sue if tools/boxes where severely damaged by coworker negligence, like someone driving a car into the box.

I got a ballpark figured sorted out finally and I'm looking at roughly $20k (Canadian dollars) to replace all my stuff including my new $5k box coming in 3-4 weeks. Previously I never worried about it because for the majority of my career (previous 14 years or so) I could replace everything for like $5k or so, thankfully my trade doesn't require $50-$100k in tools. The past couple years since I switched jobs (which came with a substantial raise) and became single I have spent more on tools each year than the previous 14 combined lol. I don't have $20k on hand to replace it all if the shop burned down or someone broke in and stole everything.

If anyone in the shop were to cause major losses/damages (highly unlikely as nobody backs trailers into my bay except me) to my stuff they would personally be on the hook to cover things. All the guys are honest, standup dudes and I have no worries about that. My previous employer gave me $10k of coverage and I knew it was solid as my old boss is like an older brother to me and I worked for his family for 13 years and rented property from his dad, who I also worked for.

Have you talked to your agent about it? They might have some options or be able to underwrite another companies policy for your tools.

I spoke with my car insurance broker a couple years ago and they only offered up to $3,500 of coverage and the premium was like $70/month which was insane. I am in talks with another insurance company exploring other options and I just sent the lady my replacement value for everything. Hoping to hear back from her tomorrow at some point with a quote now that she has a figure to work with.

 

[Zewnten]

I got a quote for personal tool coverage from a company in New Jersey. Only one I found at that time that covered tools without requiring other insurance policies. There was a similar discussion on heavy equipment forum and you can rwad about issues those guys had with putting it on their home owners or general liability.

 

[u2slow]

Insurance likes to follow the following models:

1) self-employed and you have business tools at your business address (which can be your home or not; or mobile in a vehicle.)

2) homeowner, where your house and belongings within are all covered.

Mechanics are in a tough spot. Employment generally means you aren't providing all the tools.

I would see what your employer's business insurance company can do. Maybe an extra rider in your name can be added for a certain value? Depending on your employer, he may have the means to contract you as a 3rd-party (part-time anyway) to justify a self-employment situation, to get business insurance.

 

[ZRX61]

You want an Inland Marine policy.

 

[Mr.Smoke]

Insurance likes to follow the following models:

1) self-employed and you have business tools at your business address (which can be your home or not; or mobile in a vehicle.)

2) homeowner, where your house and belongings within are all covered.

Mechanics are in a tough spot. Employment generally means you aren't providing all the tools.

I would see what your employer's business insurance company can do. Maybe an extra rider in your name can be added for a certain value? Depending on your employer, he may have the means to contract you as a 3rd-party (part-time anyway) to justify a self-employment situation, to get business insurance.

I am waiting for the guy at our main location who handles all the insurance stuff to get back to my supervisor about adding coverage. With how quickly, efficiently and thoroughly things get done at our main shop I'm not expecting a solid answer any time soon lol. Hopefully I'm wrong but if I keep expectations low I'm far less likely to get disappointed. I sent some emails today to companies I found in Canada offering coverage for contractors, techs and other fields where personal tools are used. A friends mom also is an isurance broker so I'm going to speak with her tomorrow too for a quote.

You want an Inland Marine policy.

Not sure what that is, but I'm going to look into it right now. Thanks!

 

[dscheidt]

I got a quote for personal tool coverage from a company in New Jersey. Only one I found at that time that covered tools without requiring other insurance policies. There was a similar discussion on heavy equipment forum and you can rwad about issues those guys had with putting it on their home owners or general liability.

I used to have coverage (when I last worked in a shop) for my stuff. I arranged it with the independent broker who did insurance for the shop and the business owner. They didn't blink when I asked about it, so I suspect they did it regularly. It was not terribly expensive, but only covered a few named perils (theft, fire, wind caused building collapse, something else; notably not water caused damage, nor damage from negligence (like someone crashing a car into a box)), an all risks policy was available, but quite a bit more expensive. I was satisfied that such uncovered risks were very low probability, and many of them would have been covered by my employer's garage keeper's insurance.

 

[Zewnten]

I used to have coverage (when I last worked in a shop) for my stuff. I arranged it with the independent broker who did insurance for the shop and the business owner. They didn't blink when I asked about it, so I suspect they did it regularly. It was not terribly expensive, but only covered a few named perils (theft, fire, wind caused building collapse, something else; notably not water caused damage, nor damage from negligence (like someone crashing a car into a box)), an all risks policy was available, but quite a bit more expensive. I was satisfied that such uncovered risks were very low probability, and many of them would have been covered by my employer's garage keeper's insurance.

That was basically my experience. Usual insurance policies didn't know how to handle it but the one I had was really low monthly premium and no deductible.

 

[3rdgen]

You want an Inland Marine policy.

Yep cheap too, mine was 120 a year when I was living in a motel for 5000 dollars worth of tools

 

[2ndGearRubber]

Insurance likes to follow the following models:

1) self-employed and you have business tools at your business address (which can be your home or not; or mobile in a vehicle.)

2) homeowner, where your house and belongings within are all covered.

Mechanics are in a tough spot. Employment generally means you aren't providing all the tools.

I would see what your employer's business insurance company can do. Maybe an extra rider in your name can be added for a certain value? Depending on your employer, he may have the means to contract you as a 3rd-party (part-time anyway) to justify a self-employment situation, to get business insurance.

I'm providing 99.9% of the tools though?

I suppose, the shop has a jack, tire machine, some lifts, computers.... I'm not one to consider the half dozen wheel weight tools other techs have left behind over the years as "supplying tools". The might have a TPMS activator tool for the sensor they sell, but they sure as hell don't have a scan tool, any timing tools, press adapters, ball joint presses, any hand tools, threading tools, etc.

If we eliminate the lifts, I'm 100% confident I have significantly more invested than the shop does in tooling. AC machine, decrepit tire machines, torch and welder, parts store jack and jack stands, TPMS tool the got for free from a vender, 2004 updated OTC scantool with broken cord.... I'd even let then count the computers, desks, etc. I doubt they even have 15k.