Tool/toolbox insurance

[free07110]

I work on cars for a living and have around $25k invested in tools and box. My agent says my home owners policy doesn't cover it since it's for my job and tools aren't stored at my house. I have had liberty mutual and farmers and they both say that.
I don't understand how they wouldn't be covered. If I can a storage unit I rented they cover the contents of that unit under my personal property. This in my eyes is the same concept. My personal property(tools) are stored at my work.
They say it is because they are used for my work and that should be covered under a business policy. I'm not a contract labor but a employee at a dealership. Also my work states in the handbook they don't cover technician tools.
Has anyone run into to this before? Not interested in a extra policy for tools if I don't have to.

 

[Jbullfrog]

Tools and equipment need to be covered with an inland marine policy, by you. Don't expect you employer's insurance to cover you tools. It's not expensive to be protected. A lot of companies are cutting cost by not covering employees tools.

 

[free07110]

I'm not opposed to get a separate policy on them just think it's odd that wouldn't be covered under my personal property insurance on my home owners insurance.

 

[LXCam]

Simply put I agree with what your insurance stated. And I would be having one hell of a conversation with the shop. You have no control over how the shop protects their property or your belongings they require you to have there other than a decent box with a decent lock more or less. How is it your responsibility to provide insurance and the incurred cost if the shop is negligent in respect to securing the facility.

So let's take some liberty here. Say someone forgets to arm the alarm and leaves the shop unlocked. The place gets hit and you and the other wrenches get cleaned out. "Your" supposed to eat this cost? F that. I'd get everyone together and have a conversation with management.

I owned a construction company for many years. All though limited each employee was required to have a certain minimum of hand tools as part of their employment requirements. I also carried equipment insurance for everything that cost me huge money. And the couple of times I hand a truck get cleaned out I covered the tools my guys lost too.

I should really stay away from trying to make a point while phone posting, I **** at it. After rereading my point isn't coming across very well but you get the jist of it. I'll shut up now

 

[fordnut85]

Simply put I agree with what your insurance stated. And I would be having one hell of a conversation with the shop. You have no control over how the shop protects their property or your belongings they require you to have there other than a decent box with a decent lock more or less. How is it your responsibility to provide insurance and the incurred cost if the shop is negligent in respect to securing the facility.

So let's take some liberty here. Say someone forgets to arm the alarm and leaves the shop unlocked. The place gets hit and you and the other wrenches get cleaned out. "Your" supposed to eat this cost? F that. I'd get everyone together and have a conversation with management.

I owned a construction company for many years. All though limited each employee was required to have a certain minimum of hand tools as part of their employment requirements. I also carried equipment insurance for everything that cost me huge money. And the couple of times I hand a truck get cleaned out I covered the tools my guys lost too.

I should really stay away from trying to make a point while phone posting, I **** at it. After rereading my point isn't coming across very well but you get the jist of it. I'll shut up now

you are correct to a point, the key word in this conversation is LIABILITY. If someone fails to set the alarm or lock a door and your tools are stolen then the shops liability policy would cover it. However, if an alarmed and locked shop has some crack head drive a truck thru the roll up door and steal said tools then the shop is not liable since they made a reasonable attempt at securing the shop and the property within.

As far as your homeowners insurance, of course they won't cover anything that's not on your property, the only reason they will cover a storage unit is when you sign the rental agreement, it then becomes an extension of your property and is therefore covered.

Call your insurance agent and tell them you want a tool policy for ** amount and be done, it costs very little and your covered. Also, given the current number of techs down south dealing with hurricanes and flooding, make sure natural disasters and floods are covered.

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[FigureItOut]

Mine are on my commercial policy but I had to specifically add them. The cost is minimal, even with my policy covering replacement cost, rather than fair market value, which I recommend. At $25k, you'll likely be able to get them insured for less than $200 a year. It'll be inland marine, as was said.

It ***** to have to do it, but personally I like to stay very well insured with low deductibles. The total loss of my tools, a customer's vehicle, or even worse a major liability case, could ruin me financially for a very long time. It feels good to be well protected.

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[ScottsGT]

LXCam, their business, their rules. They were spelled out clearly. Don't like it? Get a job elsewhere or buy insurance. A group policy covering employees costs businesses a lot, and a lot more when employees abuse it to get tools replaced or added to their inventory. Because of abuses, is why we can't have good benefits.
But seriously though, if a mechanic makes a living with $25K-$50K of tools, it's crazy not to carry a separate policy on what one makes a livelihood with.
Let's say you are changing jobs, tools loaded up in a truck heading to new place of employment. Truck gets stolen when you stop for lunch, hit by a semi and tools scattered all over the highway, stolen sitting in a trailer overnight at your house, etc...(Think of those Farmers Ins commercials).
It's just too much of a chance to take to not cover them with a policy.

My wife is a medical professional. Don't get me started about covering your ***.

 

[Bacon Man]

Work in a plant, when our tools get stolen the boss tells us it's our fault, but then tries to put us on 7 days when a shop tool comes up missing.

 

[WittHay]

The policy wording is a lot different in Canada and insurance costs seem to be a lot higher as tools have always been very expensive to insure.

When heavy duty shops in a given area are looking for mechanics, shops paying for their workers tool insurance are a perk to entice new employees. Opposite happens when a shop is losing money, they cut costs

A lot of times commercial or tools used for business are not covered by homeowners insurance even if stored at your house.

If you quit your job and have $30,000 tools sitting in a van, up here you would need a tool floater under a business policy. Basically you are a self employed mechanic until you find your next job

 

[jimindm]

The problem with asking an employer about insurance is they only interpret it the way they want. many will never ask the question, because it may or may not cost them.

Getting your own insurance is not a bad thing.

I would also really look at your policy, if you think they are covered sitting in your garage. Many policies for out buildings are rated for a percentage of you home owners insurance.

If you have a $500k policy, you may only be covered on an outbuilding for 10% of that.

You mention $25k in tools, could you rebuild your garage for the other $25k.