Tips For Covering Your Tools and Equipment 01/04/2016
The typical construction site is an irresistible temptation for thieves. Security is often minimal, valuable equipment and materials are left unattended for extended periods of time, and it can be difficult for would-be witnesses to differentiate acts of theft from the routine movement of equipment on and off site.
The consequences from theft can be significant, often causing extended downtime and costly delays. Imagine the impact on your business without your tools and equipment!
MBAIS can provide various options to cover this risk to your business, including theft ‘on site’ or ‘anywhere in Australia’.
One of our builders, who recently elected to upgrade his cover to 'anywhere in Australia', was relieved to have the broader cover, as thieves stole tools from his utility parked in the driveway of his home, which was not considered by the insurer to be ‘on site’, despite the fact he was building a deck and pergola at his own home.
Tip #1: Underinsurance and depreciation
When claiming for tools, there is potential for depreciation, underinsurance and excesses to be deducted, so make sure you are adequately covered. If you are only declaring a proportion of the market value of your tools, it is possible that underinsurance could be applied, resulting in your claim being reduced by the percentage you underinsure.
If your tools are more than two years old (or less under some policies), depreciation can be applied reducing the value of your payout.
Tip #2: Keep your tools out of sight
There is a ‘duty of care’ condition in every insurance contract. When you are not using your tools and equipment, ensure they are kept in a locked and secure area out of plain sight.
Don’t leave your trailer on-site overnight, as it is an obvious target, however if this can’t be avoided, make sure you have wheel clamps and keyed lock nuts on the trailer wheels at all times.
Need to insure your tools?
Contact us today for various options to cover this risk to your business.