For many small business owners, the tools of their trade are expensive to replace and vital to do their work. In order to avoid big financial problems in the event of an emergency, it is important to insure these tools. But how can you best insure your important tools? Here are a few routes you may be able to take.
1. Check Your Business Owner Policy
Many small businesses rely on a 'standard policy' package known as 'Business Owners Policy'. This policy combines the most common needs in liability and property insurance with relatively low coverage limits on some items.
If you don't have a large piece of property to cover, you may find that the property coverage included may be enough to cover your valuable tools instead. But make sure that your property insurance will cover items that are regularly transported rather than items that are fixed in your place of business.
2. Seek Out Tools and Equipment Coverage
In response to specific challenges in various industries, the insurance industry has crafted a few targeted insurance policies. One such niche policy is 'tools and equipment coverage'. Designed especially to cover things like construction or artisan tools regularly transported overland, this policy is usually a relatively inexpensive purchase.
Tools and equipment policies would be used to supplement your umbrella package or BOP rather than to replace it. You can generally buy it separately or get a rider for the larger policy you already purchase.
3. Cover Your Vehicles Properly
If you carry these expensive tools or pieces of equipment in a car or truck, commercial auto insurance plays a role in protecting them. First, the vehicle itself will be a target for theft or damage in order to get at the valuable tools. If you don't sufficiently insure it, you may not be able to replace both the truck and the tools.
Second, some tools or pieces of equipment are permanently fixed to the vehicle they're on. Where this is the case — such as with permanent tool racks and specialty protection equipment or with integrated technology — auto insurance may be the first place to look for reimbursement.
Although you may have to work a little harder to insure unusual elements of your trade, the effort will be worth it. You can build your business confidence in the fact that you won't be ruined by either the normal risks of running a business or unforeseeable disasters. To learn more, reach out to a commercial insurance agency near you.