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Garage & Towing Insurance Series...Tip #5... Are My Tools Covered?

Last time we talked, we were talking about insuring those paint booths of yours! Tip #5 is just as important...

You recently had your tools stolen from your shop. These were SnapOn tools, but they were replaced by $%*^&@#$. Sorry, for privacy reasons I wanted to keep the other guy’s name anonymous. Needless to say you weren’t happy with the new tools you got.

I have got some great news for you! If you had the right coverages in place, the insurance company would not have had a choice as to what tools you got. Your stolen tools would have been replaced with the original SnapOn tools you had before. On average these tools in your cart can add up to $15,000-20,000. These is not a price you want to pay out of pocket.

Here are some things you should know when obtaining insurance for your shop.

As I said earlier, there is always a chance that your tools may not be covered under your policy, for various reasons. Now, if you are working with someone like Mike, then you know he is an expert in this area and therefore would be proposing this type of coverage. If you aren’t insured with us, check out your policy and give us a call.

Your policy may be providing you coverage for a blanket amount to protect your tools. However, there may be an underlying limit per tool. Example, you have a limit of $50,000 for your tools. One of your stolen tools was $10,000 and come to find out, your policy only covers you for $5,000 per tool with a total limit of $50,000. Now your tool isn’t covered.

Something to also keep in mind is that your policy may not cover your employee’s tools, but there is the option for this. For some employees they think that their tools may be covered under their homeowner’s policy which is true, but much like the above example, there could be a limit per tool. Not to mention that once your tools leave your property, there is a chance they may no longer be covered.

If you are an employee, you should check in with your employer to ensure that your tools that you bring in personally are covered under their policy. As an employer, this is a great benefit to provide to your employees.

Circling back around to the original issue. There is a difference between insuring your tools for replacement cost and then insuring them for actual cash value. Replacement cost is the value how much the item would cost if purchased new. Actual cash value is the replacement cost minus depreciation. You are probably seeing how you could have ended up with $%^&*@#$ tool rather than your SnapOn tool that you so love.

The bottom line, you really should give your agent a call. Mike is our expert and loves working with professionals in this industry. Let him make this easy for you! Click the link below and he’ll guide you through what you have and what you should have!

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