Every year, new phrases find their way into dictionaries of idioms. Some are old favourites – ‘raining cats and dogs’, ‘under the weather’ or how about ‘going the extra mile’. Others barely get off the ground. But it did get us thinking: how has ‘on the tools’ never made the cut? It’s part of everyday language for millions of people after all.
Being on the tools means real, hands-on work. It’s how you earn a living, put a roof over your head and food on the table. But without your tools, the work stops. You can call yourself a labourer, a tradesperson, or whatever fits – but if the tools are gone, the job grinds to a halt. No tools, no work.
Most people reading this won’t need us to spell out how big a problem tool theft is in the UK. Vans are broken into day in, day out. Kit disappears overnight. And when it happens, it never feels like bad luck – it feels inevitable. When Rhino surveyed customers in 2024, over 80% said they knew someone who’d already fallen victim to tool theft.
So the question isn’t whether tool theft happens – it’s what you’d do if it happened to you.
That’s where tools insurance comes in. It doesn’t have to ‘cost an arm and a leg’ and for the sake of this introduction, we’re done ‘beating around the bush’ and are ready to ‘spill the beans’, if you like, on everything you need to know about Tools Insurance – what it does, what it doesn’t, and how it can help you get back ‘on the tools’ when the worst happens.
Tool Insurance is designed to reimburse you in the event of theft, loss or damage to your tools whilst being stored, loaded or unloaded from your work vehicle, including tools stored in your vehicle overnight (subject to security conditions – more on those later).
From time to time, it’s referred to as Tools in Transit Insurance. That’s because the risk is highest when tools are being moved between jobs, loaded or unloaded, or left temporarily in a van. It’s not about insuring a static workshop full of equipment – it’s about protecting the tools that go where you go.
Tools Insurance from Rhino starts at £4.74 per month, with cover levels ranging from £500 up to £7,500.
The exact price you pay depends on a few factors:
The total level of cover required
The number of vehicles that require cover
For most tradespeople, tools insurance is a relatively small monthly cost compared to the financial hit of replacing stolen tools. It’s not just about paying for peace of mind – it’s about avoiding a situation out of your control that puts you off the tools altogether.
Unfortunately, tool theft is one of the main topics dominating the trades industry. Despite increased awareness, the number of tool thefts remains high.
Break-ins happen on driveways, on-site, and in well-lit streets. Vans are targeted because thieves know tools are valuable, easy to sell, and often left overnight. Even careful tradespeople can still get hit.
Without tools insurance, one incident can:
Stop you working immediately
Cost thousands to replace equipment
Push jobs back or force cancellations
Damage your reputation with customers
Tools insurance doesn’t just replace kit – it protects your ability to keep earning. Replacing tools, whether it’s out of your own pocket or through other tradespeople who are able to lend you bits of kit, is disruptive and time-consuming.
If your tools are stolen or damaged, you’re not just facing replacement costs. You’re potentially losing work, missing deadlines, and damaging customer relationships. Tools insurance helps you get back on the tools quickly, instead of scrambling to borrow kit or eat into your savings.
Tools insurance covers:
Theft of tools from your vehicle, including when tools are being loaded into or unloaded from your vehicle
Damage to your tools from flood or fire-related damage while they’re in your vehicle
Overnight storage of your tools in your vehicle, so long as it’s locked and parked in a secure location such as a locked garage, on your driveway, or on the same street as, and clearly visible from, the premises that you’re staying in overnight
Plus accidental damage to tools and malicious damage by a third party
For more detail, see Tools Insurance FAQs.
Tools insurance isn’t blanket cover for anything that goes wrong. Common exclusions include:
Tools left visible inside an unlocked vehicle
Theft without evidence of forced entry
Tools stored anywhere but your vehicle
General wear and tear or gradual deterioration (this is accounted for when a claim is made)
Tools that you cannot produce receipts or proof of purchase for
Phones, laptops, tablets, or other non-work electronics (read about Gadget Insurance for this)
There are some security conditions that must be met to ensure your policy will cover you. For example, you must not leave your property unattended when your vehicle is unlocked, and you must ensure that your tools are fully hidden and stored in a locked boot, cargo hold, or an internal locked compartment.
Rhino’s Tools Insurance protects your tools even when stored in your vehicle overnight. However, your vehicle must be locked and parked in a secure location, such as your driveway, behind a locked gate or in a locked garage, or in a well-lit area on the same street as, and clearly visible from the premises in which you are staying overnight.
Ultimately, this is up to you, and it depends solely on the value of the tools that you carry and what they’d cost to replace.
A good starting point is to list:
Hand tools
Power tools
Specialist or trade-specific equipment
With Rhino’s Tools Insurance, claim payments take depreciation into account. Tools lose value over time through use and wear and tear, and depreciation is applied at 10% per year, up to a maximum of 50%.
For example, if you bought a combi drill four years ago for £250 and it’s stolen, the value would be reduced by 40% (10% for each year you’ve owned it). That’s £100 in depreciation, meaning the payout for the drill would be £150.
Some trades carry £1,000 worth of kit. Others easily exceed £5,000 once power tools and specialist gear are added in.
Underinsuring might save a small amount each month, but it can leave you short if you ever need to claim.
Remember, the level of cover you choose is the maximum payout that you could receive.
Tools insurance isn’t one-size-fits-all. Different trades carry different equipment and face different risks.
Rhino tools insurance is commonly used by:
Plumbers – hand tools, power tools, pipe equipment and press tools
Carpenters & joiners – saws, nail guns, routers and precision tools
Electricians – testers, drills, cutters and specialist electrical equipment
Builders – a wide mix of hand and power tools across multiple jobs
Gas & heating engineers – diagnostic equipment, power tools and trade-specific kit
The key is making sure your declared trade and tool value accurately reflect what you actually carry day to day, and that you consider the tools you can show receipts for, and the age of these tools.
A plumber finishes work and parks their van overnight on a well-lit residential street, where they can see it from their bedroom window. The vehicle is properly locked, with all tools stored out of sight inside a secured internal compartment. During the night, the van is broken into, and the doors are forced open, leaving clear visible damage.
The plumber reports the theft to the police as soon as it’s discovered and receives a crime reference number. When making the insurance claim, they provide a clear list of the stolen tools along with purchase receipts to confirm ownership and value.
This claim would typically be covered because the key security conditions were met. The van was locked and parked in one of the specified locations for overnight cover. The tools were not left on display; there is visible evidence of forced entry, and proof of purchase was supplied. Reasonable care was taken throughout, which allows the claim to be assessed and settled in line with the policy.
A builder stops at a supplier during the working day and leaves their van unlocked while heading inside. Tools are left clearly visible through the windows. During that time, someone opens the van and steals the tools without causing any damage to the vehicle.
When the theft is reported, there’s no evidence of forced or violent entry, and the tools were left on display in an unlocked vehicle. Even though the stop was brief, the van was unattended and security requirements weren’t met.
This claim would likely be declined. Tools insurance relies on reasonable care being taken, and visibility of the tools and locking the vehicle are key parts of that. Without forced entry or tools being stored out of sight, the policy wouldn’t respond.
Most tools insurance claims hinge on three things: whether the vehicle was locked, whether tools were hidden from view, and whether there’s clear evidence of forced entry. If any one of those is missing, it can be enough for a claim to fail.
It is important to note – if the theft or damage occurs overnight, and where the vehicle is parked will also be a key factor in the outcome of the claim.
Claims should be reported as soon as possible after the incident. You can find Rhino’s claims details here: Rhino Trade Insurance Claims.
When making a claim, you’ll typically be asked for:
Details of the incident – what happened, where, and when
A list of lost or damaged tools – including make and model where possible
Proof of purchase – receipts, invoices, or original purchase orders
A police crime reference number – required for theft or malicious damage
Providing this information early helps avoid delays and allows the claims handlers to assess things quickly.
No. Rhino does not offer stand-alone tools insurance.
Tools insurance with Rhino can only be taken alongside an active Public Liability Insurance policy.
Yes. Proof of purchase is important.
Receipts, invoices, or original purchase orders are used to confirm ownership and value. Without them, a claim will not be able to progress, or it will be declined.
Proof of purchase is required for tools insurance claims. If you can’t provide receipts, invoices, or other valid proof showing ownership and value, the tools won’t be covered and the claim won’t be paid.
Keeping copies of purchase receipts — even digital ones — is the simplest way to avoid problems if you ever need to claim.
Payout times vary depending on the complexity of the claim and how quickly information is provided to the claim handlers. Straightforward claims with full documentation are settled faster than those missing details.
Claims are settled based on the tools' value, less depreciation. This is calculated at 10% of the original purchase value per year, with depreciation capped at 50%. Replacement may be offered where appropriate, but it isn’t automatically new-for-old.
Depreciation reflects the fact that tools lose value as they age and are used.
With tools insurance, depreciation is applied at 10% of the original purchase value per year, for the first five years, up to a maximum deduction of 50%.
That means even older tools still retain value under the policy — they’re not written off completely.
Tool: Circular saw
Original purchase price: £300
Age: 3 years
Depreciation is calculated as:
10% per year × 3 years = 30% depreciation
30% of £300 = £90
Claim value:
£300 – £90 = £210
This £210 would be the maximum amount payable for that tool, subject to the overall policy limit and claim conditions.
Depreciation is capped at 50%, so even tools older than five years will still retain half of their original value for claim purposes.
Actual cash value is the value of a tool at the point you make a claim, after depreciation has been applied.
In plain terms, it’s what the tool is realistically worth today – not what it cost when it was brand new. Age, usage, and wear all factor into that figure. This keeps claims fair and avoids inflated payouts for heavily used equipment.
A tool that’s a few years old and used daily will have a lower actual cash value than a new one, but it won’t be reduced to nothing.
No. Tools Insurance is not new-for-old.
Claims are settled on an actual cash value basis, with depreciation applied up to the maximum limit (up to 50%). That means payouts reflect the value of the tool at the time it was lost or damaged, rather than the cost of replacing it with a brand-new equivalent.
This approach mirrors how tools are used in real working conditions and helps keep premiums sensible, while still providing meaningful protection when tools are stolen or damaged.
Your vehicle must be fully locked when not attended, with all tools stored out of sight. When left overnight, the vehicle should be parked in a secure location — such as a locked garage, behind a locked gate, on a private driveway, or on the same street as where you’re staying and clearly visible from the property.
Rhino’s Tools Insurance offers 24/7 cover, meaning your tools are covered around the clock.
There are additional security requirements when tools are stored in your vehicle overnight, though. The policy considers “overnight” as between 10pm and 6am.
These security requirements are outlined under the ‘what security conditions need to be met?’ question, further up this page.
Get a quote: Get an instant trade insurance quote or give us a call on 0116 243 7904.
A practical, no-nonsense guide to Tools Insurance for UK tradespeople. Learn what tools insurance covers, how much it costs, how claims work, and how Rhino helps protect your tools so you can stay on the tools if the worst happens.
If you are looking at ways of financially protecting your business, your tools, or your income, it’s vital to understand just how important insurance can be.
Personal Accident Insurance helps plumbers protect their income if they’re injured and unable to work, providing a lump-sum payout when it’s needed most.
Tell us your trade and get a tailored insurance quote for your business in seconds
Our team of experts are available to talk to Mon-Fri 08.30-17.30 and Sat 10.00-14.00
