When Tool Theft Strikes Your Hardworking Tradie Business

Battery-powered tools are now prime targets for thieves. Such tools are lightweight, valuable, and easy to resell on the black market, particularly online, even though they’re unlikely to fetch more than one-third of the original purchase price.

Typically, insurance claims for tool theft involve equipment taken from utes, vans, or cars, often left visible or not fully secured overnight. And one in seven residential burglaries sees tools among the most often stolen items.

Shockingly, a Herald Sun report shows that seven out of 10 tradies experienced tool theft in the past year and almost half of them were targeted multiple times. Some $33 million worth of hand and power tools were taken from Victorian tradies in 2023, for example.

Organised theft rings are also targeting construction sites, focusing on new developments and busy worksites. These are often planned operations, not chance thefts. Theft from motor vehicles jumped 39.3% in Victoria in the 12 months to March 2025, with power tools and number plates, the most common items taken.

Smart Prevention Strategies That Work

The Royal Association Club of Victoria (RACV) and other sources advise these moves to prevent tool theft:

• Adding identification marks to tools to make resale harder
• Securing them in lockable toolboxes anchored to vehicles with quality locks chains
• Removing tools from view
• Storing the most valuable tools in separate locked cabinet with your toolbox
• Parking in secure garages where possible to deter opportunistic theft
• Keeping detailed inventories with make, model, serial number, value and digital photos and store these on the cloud
• Investing in small GPS trackers for tools enabling live monitoring via smartphone
• Fitting vehicles with alarms and immobilisers to make break-ins more tricky
• Training staff on security procedures and the importance of locking up
• Setting up high-definition CCTV cameras on vehicles and at worksites
• Regular security audits involving checking job sites and vehicles to spot vulnerabilities

Another key strategy is to ensure you have adequate insurance cover that’s customised to your business operations and needs. Your broker or adviser can help with that.

What Portable Equipment Insurance Actually Covers

Portable equipment insurance (also called Tools and Equipment Insurance) protects tools against theft, fire, and accidental damage. Standard cover usually includes theft after ‘forcible and violent entry’ and theft of equipment transported with you and kept offsite in a locked, secure area.

However, claims can be denied if policy conditions aren’t met. For instance, if tools are stolen from unlocked vehicles or unsecured sites, or if there’s no evidence of forced entry. About half of thefts from vehicles show no forced entry, which is a common reason insurers reject claims. Policies may also exclude theft by employees, unexplained stock shortages, or items not properly declared or valued.

The Documentation That Makes or Breaks Your Claim

Strong documentation speeds up claims, and reduces disputes. Insurers often require a police report, proof of ownership (receipts or photos), and evidence of proper security. Recording serial numbers, make and model details, and keeping recent photos, are good moves. The average successful theft claim is around $5,000, with accidental damage claims averaging up to $7,000.

Getting Your Cover Right Before You Need It

Many tradies only find gaps in their cover when making a claim. Some portable equipment policies don’t automatically cover tools off-site, after hours, or in transit. Other insurers apply different rules for job sites versus vehicle storage, or demand specific security measures to activate cover.

With our guidance, you can review your policy regularly to ensure it matches the way you work. If you’ve bought new gear, changed locations, or altered your operations, your insurance may need updating. We can demystify exclusions and choose cover that suits real-world conditions, not just the lowest premium.

Combining smart prevention technology, strong security, and comprehensive portable equipment insurance gives the best protection against tool theft and its financial fallout.

While no strategy is foolproof, the right measures can cut your risk and ensure you’re covered when the unexpected happens.

---

Important notice 

This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product. 

Information is current as at the date the article is written as specified within it but is subject to change. BICS make no representation as to the accuracy or completeness of the information. Various third parties have contributed to the production of this content. All information is subject to copyright and may not be reproduced without the prior written consent of BICS.