April 27, 2024

General Property Insurance

also known as “tool insurance” among tradies, is a type of cover that can protect your portable “tools of trade” from a variety of risks.  There is a diversity in the elements that can be covered depending on the type of business that you are operating.

 Let’s take a closer look at the protection for the ‘tools of trade’ that you utilize as part of your business.

Tradesman:

Items covered may include primary tools through to electronic equipment that is of great worth.

Consultant:

Items covered may include a laptop, tablet or mobile phone.

General property commonly covers portable items.  If you have office equipment, those should be covered under your business contents insurance.

Events covered under a general property policy varies from one insurer to the next.  The events listed below are covered under the most common policies in Australia.

  • Damage due to fire or storm
  • Damage due to a rollover or vehicle collision
  • Theft after forced entry

The following events are also covered by some insurers, however, these policies are generally more expensive

  • Accidental damage
  • Theft without forced entry (‘open air’ coverage)

Some insurers also include flood cover.

Make sure to check with the insurer or your insurance broker to see how flood is exactly treated by your policy. Whilst it is important to always check your specific policy, the three points listed above are prevalent for the most part of general property policies.

How much does General Property Insurance cost?

General property insurance costs differ depending on four main factors:

  • The property’s total value;
  • Your business type;
  • The property’s geographical location;
  • Your required cover.

The property’s total value to be insured will extensively have the greatest influence on the insurance cost.  Simply put, the more you need insurance for, the more expensive it will cost.

Your business type will also have an impact, and generally, based on claims history.  The lower your claims rates are, the more likely you will pay for less insurance.

Your general property cover can be affected based on claims history for your postcode or suburb, similarly to your home and car insurance. Your required cover can have a major impact on the cost.  Basic fire and storm damage policies cost less than policies that cover ‘open air’ theft and flood.

In the event of a claim!

You will be required to show proof of ownership in the event of a claim so we advise clients to have photographs, receipts and user manuals for your insured items as your proof of ownership.

ARMA Insurance brokers are experts and specialists that will help you find the right cover for you and will help you simplify the process.

Our advice is:

If your tools generate you an income, they are not generally covered under your home and contents policy so unless you can afford to replace them yourself, we advise to fully insure them with all covers for full replacement value.