Does Public Liability Insurance cover my tools and equipment?
This article is general in nature. For advice specific to your situation, book a call with the Pocket team.
Does public liability cover my tools?
No. Public liability insurance covers injury or damage you cause to other people and their property, not your own. If your tools are lost, stolen, or damaged, public liability won't respond. That's a different cover: tools of trade (also called portable equipment) cover, which tradies usually hold as part of a trades package.
TL;DR
Public liability protects third parties, not your gear. The cover that replaces stolen or damaged tools is tools of trade cover, and it's separate from (though often bundled with) public liability.
Key facts:
- Public liability = other people. It covers third-party injury and property damage, so by design it never covers your own tools, equipment, or stock.
- Your tools are covered by tools of trade / portable equipment cover, for theft, accidental damage, fire, and storm.
- Tool theft is a common, expensive claim. Replacing a full kit such as drills, saws, power and hand tools, plus a laptop can easily run into the thousands.
- Don't rely on your home or car insurance for work tools. Some policies include limited cover for income-producing tools, usually a small sub-limit with conditions, but often won't cover your gear adequately, or at all.
- Most tradies bundle it: public liability + tools in one trades policy, rather than buying each separately.
Why doesn't public liability cover your tools?
It comes down to what public liability is for. It responds when a third party (a client, customer, or member of the public) is physically injured, or their property is damaged, in connection with your business activities. New to the cover? See What Is Public Liability Insurance?
Your tools are your property, not a third party's. So they fall entirely outside what public liability is designed to do, the same way it doesn't cover your own stock, vehicle, or premises. It's not a gap or a loophole; it's simply a different risk that needs a different cover.
What actually covers your tools?
Cover for your own gear goes by a few names: tools of trade, portable equipment, or general property cover. It typically responds to:
| Covered event | What it means |
|---|---|
| Theft | Tools stolen from a site, vehicle, or storage (often requires forced/secure entry, check the wording) |
| Accidental damage | A tool dropped, crushed, or damaged on the job |
| Fire and storm | Loss from fire or weather events |
| Tools in transit | Gear damaged or stolen while being moved between jobs |
Cover is usually set as a total sum with a per-item sub-limit. High-value items above the sub-limit (often around $2,500) need to be listed separately.
What tools cover does NOT cover
| Not covered | Why / what to use |
|---|---|
| Wear and tear | Tools cover is for sudden loss, not gradual deterioration |
| Tools you don't use for work | Only business tools of trade are covered |
| Tools you don't own (e.g. borrowed) | Generally not covered. Some policies offer limited theft-only cover, or cover for hired tools you're required to insure under a hire agreement. |
| Tools left unattended in a vehicle | Many policies exclude or limit this, so check the wording |
| Third-party injury or property damage | That's public liability, not tools cover |
The trap most tradies hit: tools stolen from a van. A lot of policies exclude or heavily limit tools left in an unattended vehicle, or require evidence of forced entry. If your gear lives in your ute, confirm exactly how your policy treats vehicle theft before you need to claim.
Does my home or car insurance cover my work tools?
Not reliably. Some home-and-contents or motor policies include limited cover for income-producing tools but usually only up to a small sub-limit, and with conditions attached. Many won't cover commercial-use tools adequately, and some won't cover them at all, especially offsite or in transit. Relying on your personal policies for work gear is one of the most common ways tradies end up underinsured at claim time.
How tradies usually cover it
Public liability and tools cover are two separate things, and it's worth knowing which does what. Pocket's Trades Liability & Tools covers the liability side: public liability up to $20M per claim, products liability, completed works, and legal defence. Theft of or damage to your own tools is a separate cover: Tools and Equipment (General Property) insurance. We recommend tradies hold both, so they're protected on both sides, the client-injury risk and the stolen-gear risk.
Quick reference: which cover for which loss?
| What happened | Which cover responds |
|---|---|
| A client trips over your gear and is injured | Public Liability |
| You damage a client's property on site | Public Liability |
| Your tools are stolen from the van | Tools of Trade (if vehicle theft is included) |
| A power tool is dropped and destroyed | Tools of Trade |
Cover questions people actually ask
"So public liability is useless for protecting my tools?"
Not useless, just not the right cover for it. Public liability is essential for the client-injury and property-damage side (and often contract-required). It simply isn't the cover that replaces your gear; tools of trade cover is.
"Can I get tools cover on its own?"
Usually it's offered as part of a trades or business package alongside public liability, but standalone General Property (tools and equipment) insurance is available too.
"My tools are worth more than the sub-limit. What do I do?"
High-value items above the per-item sub-limit (often ~$2,500) are usually listed separately on the policy. Tell your broker what your most expensive items are worth.
"Are tools in my van covered overnight?"
Sometimes, but some policies exclude or limit unattended-vehicle theft. This is the single most important thing to check in the wording.
Protect the client-injury risk AND your gear
Public liability and tools cover do two different jobs, and most tradies need both. Pocket bundles them so you're not left exposed on either side.
Book a free call with the team →
Or get a quote: Trades Liability & Tools →
With Pocket is a business name of Insurance Service Holdings Pty Ltd (ABN 36 612 629 295, AFSL 491165). Member of NIBA. Part of the Steadfast Group. This article is general in nature and does not constitute financial or legal advice.
Frequently asked questions
Does public liability insurance cover my tools?
No. Public liability covers injury or property damage to third parties, not your own tools or equipment. Tools are covered by tools of trade (portable equipment) cover.
What insurance covers stolen tools?
Tools of trade cover, for theft, accidental damage, fire, and storm. It's usually part of a trades or business insurance package.
Will my home or car insurance cover my work tools?
Not reliably. Some include limited cover for income-producing tools, usually a small sub-limit with conditions, but many won't cover commercial-use tools adequately, and some not at all, especially offsite or in a vehicle. Don't rely on personal policies for work gear.
Are tools stolen from my van covered?
Only if your policy includes unattended-vehicle theft. Many exclude or limit it, and some require forced entry. Check the wording.
Do I need both public liability and tools cover?
Most tradies do, because they cover different risks. Public liability is for client injury and property damage; tools cover is for your own gear. They're often bundled.
How much tools cover do I need?
Enough to replace your full kit, with high-value items (above the per-item sub-limit) listed separately.