Don't get caught out -Tool theft on the increase
Tool theft is rife around the country at the moment and if it hasn’t happened to you yet you’ve probably heard of it happening to someone you know.
We’re urging all tradies to take extra precautions when on site and to ensure your tools are securely locked away.
What can you do to reduce the risk?
Police are urging builders, project managers and contractors to be vigilant and take steps to reduce the opportunity for offenders to target construction sites. Security around construction sites is essential. Fencing acts as a deterrent but good locks are important too.
The Police’s advice to any company with valuable tools and equipment is to make sure they are not left in unattended vehicles that aren’t kept in secure premises overnight and at weekends. This same crime prevention principle extends to construction sites where owners and contractors are encouraged to assess the risks of leaving valuable equipment and tools at vulnerable sites. At a minimum, make sure all keys are removed and vehicles locked.
Where possible, vehicles that contain tools should be garaged or parked off the roadside and alarmed. If you have a container on site where you store tools this should be fitted with a heavy duty lockbox-style steel cover to prevent the padlock being cut. Portable alarms are also recommended for on site storage containers.
Police recommend people recording serial numbers of tools or engrave them, which makes it easier to recover them under search warrants or at second-hand dealers, and to prosecute offenders.
Is Tool Insurance worth it?
Doing your job without your tools is impossible, so having them insured makes a lot of sense. While it's not the cheapest of cover, the security of knowing if your vehicle gets cleaned out overnight you'll get a pay out can be worth it. So let's look at how to get the right cover:
What makes a good tool insurance policy?
INDEMNITY/MARKET VALUE VS REPLACEMENT VALUE COVER
Most standard policies come in one of two forms:
Indemnity or market value polices will only pay what the tool is worth when the claim is made, you have to make up the difference to buy a new one.
Replacement value cover will replace any item (that can’t be repaired) for new, regardless of its age or condition. The sum insured must be the replacement value of your tools. Beware though as some policies that claim to be for replacement value will revert to market value on items more than a few years old, so check the fine print.
The policy you want when covering off your tools and equipment is replacement, with a new for old clause like Protecsure's portable equipment policy.
THEFT IN THE OPEN AIR VS FORCED ENTRY (BURGLARY)
Tools and mobile assets policies make a distinction between theft and burglary. Theft is generally considered to be when an item is stolen “in the open air”, that is without any sign of forced entry. So, it would be considered theft if tools were stolen from an unlocked van, but burglary if locked doors were forced to gain entry. The same applies to tools stolen from site or other types of storage. We'd recommend making sure that if your gear is locked up it's covered!
EXCESSES
Right now this is a big one. It pays to double check your schedule for your excess, remember it being sold to you as a $500 excess? It’s common to see an excess increase for burglary to $1,000 and up to $2500 for theft. That can be a nasty surprise at claim time. A specialist policy like Protecsure's portable equipment policy may have a single excess and even give you the option to select a range from $100-$1000. No surprises at claim time!
Make a claim easy
Below are a few tips to help you get the best out of your tool insurance claim
Keep an asset register and keep it up to date, this will help prove your loss. Make sure you have an up to date tools/asset register that includes:
Item description, including model number
Serial number
Date of purchase and price
Photos of all items.
We'd recommend using the snap.org.nzwebsite (run by NZ Police) as a great way to keep a simple asset list.
Having your tools stolen can be a massive inconvenience, cause delays and cost money. Taking preventative measures, keeping good records and having the right insurance cover will ensure that if something does happen you can be back to work quickly and not be out of pocket.