How Much is Tool Insurance in Australia?

July 5, 2023

Tool insurance is an incredibly common policy for tradies, and can cover a wide range of equipment. It is almost unanimously recommended within the industry as something which all tradies should strongly consider.

 The cost of tool insurance can vary so wildly amongst multiple different factors, it can seem impossible to get a quick, simple answer. So, here is a quick rundown on the variables in play, and what you can expect the cost of tool insurance to be in your situation. 

What is Tool Insurance?

As a tradie, your tools are an incredibly important part of your business. Without them, you can’t work. Depending on your trade, the specific tools you own and their individual costs can vary quite widely, from under $100 to upwards of thousands. Having your tools stolen can potentially bring your business to a standstill, not to mention the costs to replace them. Tool insurance can help to keep your business running smoothly, and make sure you are not out of pocket in the event of a loss. This is likely why tool insurance is the second most popular policy for Australian tradies.

imar tool insurance covers three main insurable events, and the resultant effect on your tools:

  1. Theft from locked vehicles or premises
  2. Damage by fire, flood or vandalism
  3. Damage by collision or overturning of vehicle

What is the Cost?

So, what exactly affects the price of tools insurance? Well, the biggest contributor is the total amount (sum insured) you want to cover your tools for. This of course is an entirely individual circumstance based upon the cost of the tools and business you either run or work for. However, with imar’s policy, you can expect an annual premium from $322 for a $7,500 sum insured. In addition, we also offer monthly payments at no extra cost to assist with cash flow.

The cost of tool insurance can vary depending on the following factors:

  1. Occupation – The more complex and niche your tools are, the more likely your premium will differ.
  2. Number of employees – Employing more workers and potentially requiring a large number of tools as well as exposing your tools to higher risks may affect premiums.
  3. Revenue – A large business may again be exposed to higher risks, and therefore a higher premium.


Whether or not you decide to take out tool insurance is up to you, but we hope you have a clearer understanding of how the policy works, what it covers and most importantly, how much it costs. 

To decide if tool insurance is right for you, and for any assistance for your insurance needs, give our tradie broking team a call, or download our tool insurance policy document for a full list of defined events and details of exclusions and sub-limits that may apply.


Your time is precious, so we make it as easy as possible for you. Let’s talk!

  1. Call 1300 540 156 and press 1 to speak to our dedicated tradie broker team 
  2. Fill out our online Contact Our Experts form 
  3. Go online and fill out the Quote form


You should consider if the insurance is suitable for you and read the Product Disclosure Statement (PDS), Financial Services Guide (FSG) and policy wording before making a decision to acquire insurance. Please ask us for more details before we provide you with our services. Our FSG is available on our website.

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