A tradesman’s tools aren’t just items; they’re their livelihood. Tool theft is a serious issue in the UK, with an estimated £40 million of tools reported stolen in 2024, and 79% of tradespeople falling victim to tool theft at some point in their careers. Insurance Post recently conducted an in-depth review of the current state of tool theft insurance for tradesmen, and our Underwriting Manager, Alfie Richardson, was on hand to share his insights on the phenomenon.
According to research commissioned by DIY brand Wickes, the problem has become so bad, some tradesmen have considered leaving the profession because of tool theft. Although 2024 saw a slight decrease in reported incidents, the cost of claims is rising, and for professional tradesmen, whose lives are inextricably bound to their tools, that risk may prove too much to bear.
The role of insurance
Various types of insurance policies provide vital cover for tool theft. Stolen or damaged tools can typically be covered under tradesman or contractors policies, as well as via standalone policies that offer more bespoke, higher levels of protection for policyholders. At Iprism, we cover tools under a number of products: Trades & Professions, Contractors Combined and Commercial Combined. The cover is out there, but we often find that policyholders aren’t necessarily aware of the types of cover they can obtain, or the conditions they must follow under the terms of their policies.
“Policyholders must ensure they have carefully read and understood the terms of the policy so that they can put any additional measures in place where necessary. Brokers have an important role to play too, in educating their customers on their policy wordings and clearly explaining the risks of not having these security measures in place.” - Alfie Richardson
We believe it’s our duty to work closely with our broker partners to ensure they have a full and proper understanding of these policies. They must be able to advise their clients of any additional measures they must take to mitigate the risk of theft and adhere to the terms of their policies.
Education for tradespeople is also vital, particularly when employing new team members. Alfie pointed out that: “Some policyholders assume that their employees are cognisant of the potential for tools to get stolen. Some employees, particularly younger or newer team members, would benefit from being educated about the risk of tool theft.”
An end in sight?
It’s a sad fact that during periods of economic downturn, we often see increases in tool theft as desperate individuals turn to criminal means to make money. It’s somewhat surprising that this hasn’t been the case over this year so far, which may be a result of a couple of different factors. Alfie reflected: “Over the past few years, we’ve seen a number of police-backed campaigns encouraging tradespeople to use marking and tracking technologies to aid in recovery when tools are stolen.” We’ve also been pleased to see the introduction of a new Bill to increase sentencing for tool theft.
The Theft of Tools of Trade (Sentencing) Bill, passed its first reading in Parliament in May this year (2025). If introduced into Law, sentencing for tool theft will change from category three to category two, the tougher sentences a reflection of the massive impact theft of tools has on tradesmen and their livelihoods.
Though not yet passed, we believe increased advocacy from tradespeople and industry groups has brought greater awareness to the crime, and may act as a deterrent to would-be thieves.
What can tradespeople do in the meantime?
Despite these measures, the problem of tool theft isn’t going away any time soon, so we believe it’s important that policyholders and brokers understand some key steps that should be taken to mitigate the risk of a loss. One of the most common issues we come across is policyholders assuming that a locked and immobilised van is safe. However, policies often demand much greater security. Our primary recommendation is to ensure vehicles are equipped with security devices such as alarms and immobilisers, and enhanced security in the form of deadlocks or internal cages. Policy conditions often exceed the security of the vehicle; more onerous conditions can include ensuring that any van is within a gated or fenced-off compound.
Policyholders must have a discussion with their broker when they take out a policy to ensure they have every possible security measure in place to mitigate the risk, and give them the confidence that if they do have to make a claim, the process is as straightforward as possible.
However, getting a policy in the first place is often the biggest hurdle, as Alfie concludes: “Many tradespeople simply don’t believe it will happen to them.”
As evidence shows that the chances of falling victim to tool theft are high, we urge brokers to have these conversations with their clients, to make sure they understand the very real risk. After all, it’s more than tools at stake… It’s people’s livelihoods.
Read Insurance Post’s full in-depth article on tool theft and insurance here (subscription required): https://www.postonline.co.uk/commercial/7958124/protecting-the-tools-of-tradesmen
To find out more about our cover for tradesmen, explore our range of Construction Insurance products: https://www.iprism.co.uk/construction
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