Fordtech Posted January 3, 2010 Share Posted January 3, 2010 Hi All, Don't know if this has been discussed before, but we all have a major investment or small fortune in tools, boxes, test equipment, etc. I'm not talking about shop owners, but the individual technician. Most techs I work with or have worked with have an investment of 10k - 50k +; NO TOOLS = NO $$$$$! The shop where I am now has a policy of $2500 per tech; that may cover two or three DRAWERS of my toolbox! I called my homeowner insurance company and they told me if the tools are at my property, they are covered. Since they are at work, only $250 are covered, as if they were in my car. So, I was told if I want them covered, I'd have to take out a commercial insurance policy at $750 - $950 per year. Does anybody know other ways of coverage that's more affordable? Thanks,Jon Quote Link to comment Share on other sites More sharing options...
2006 Posted January 3, 2010 Share Posted January 3, 2010 I work at a union shop. part of the contract is that the company pays tool insurance with coverage up to $30,000. Fortunately, we never had to use it so far. The building is all monitored and alarmed. Quote Link to comment Share on other sites More sharing options...
Alex Bruene Posted January 3, 2010 Share Posted January 3, 2010 I have mine on my home insurance. Costs me an additional $33 per year. Quote Link to comment Share on other sites More sharing options...
Keith Browning Posted January 3, 2010 Share Posted January 3, 2010 I called my homeowner insurance company and they told me if the tools are at my property, they are covered. Since they are at work, only $250 are covered, as if they were in my car. So, I was told if I want them covered, I'd have to take out a commercial insurance policy at $750 - $950 per year. Does anybody know other ways of coverage that's more affordable? That is outrageous!You can get a lot of tools for $90 if you shop wisely. Who is your insurance company? I Googled this last night and found a lot of advice stating that you can get a rider on your homeowners polocy... and there are a few companies offering specific tool/equipment insurance for garages, mechanics and tradesman for around $50.00/month. Originally Posted By: AlexBruene I have mine on my home insurance. Costs me an additional $33 per year. That is reasonable but what is your coverage? Quote Link to comment Share on other sites More sharing options...
Bruce Amacker Posted January 3, 2010 Share Posted January 3, 2010 When I had my shop I insured my tech's tools, but it was extremely expensive to cover the tools as their own. I asked about the rate if the tools were shop owned or leased, and the rate very cheap-a few percent of the rate if they were insured as their own tools. The solution was obvious- write up a lease agreement where the tech's toolbox was leased to me at $1 per year, and insure them as shop owned tools. We inventoried the tech's tools, documented them with pictures of each drawer opened, and wrote up a simple lease agreement. I expanded on this to increase the amount to $550, just under the IRS report amount so it was non- taxed and the tech decided whether or not to declare it as income . This was paid at the end of the year as part of their Christmas bonus. My CRS prevents me from remembering exact numbers, but I think it cost me less than a couple hundred a year to insure three full size employee boxes- nearly nothing. It would have been several thousand per year to insure them as employee owned. This worked flawlessly for a long time. I doubt the new owner of the shop (who worked for me 9 years prior to the purchase) continued this practice. Even though I had rights to the tech's boxes, I never went in them without asking first. None of us ever closed or locked any of our toolboxes, and (thank God), I never had a thief work for me or ever had anything stolen. I doubt this story will help DTS members, but it was how I solved the situation. Perhaps if you are a long time valued employee and close to the DP, you could have a talk with him about offering this benefit. Happy New Year! Quote Link to comment Share on other sites More sharing options...
Keith Browning Posted January 3, 2010 Share Posted January 3, 2010 This is a good topic and I am surprised it rarely comes up. I am now very curious as to the lack of information on this. There are a couple ideas I have to gain more information on this and we all need to participate if possible. Chose one or both of the following and report back: [*]Each of us could ask our employer if out tools are covered under our company's policy and what the extent of the coverage is. . [*]If you have the time ask your own insurance agent what options if any are available for covering our tools as personal property. (i.e. a rider on your homeowners policy for example) I might even try a "form letter" approach and contact some of the major insurance companies and poll them on this subject... I am not personally interested in insurance however it is not a bad idea as long as it does not cost an arm or a leg. Here is one website I did find: mechanicsinsurance.com Quote Link to comment Share on other sites More sharing options...
Bruce Amacker Posted January 3, 2010 Share Posted January 3, 2010 [*]If you have the time ask your own insurance agent what options if any are available for covering our tools as personal property. (i.e. a rider on your homeowners policy for example) Good idea. In addition, please post what the cost to insure is. ($X per thousand dollars in coverage) This may give us added info about whether we're getting a fair deal from out insurance carriers or getting boned. Location will have a lot to do with it also- Ohio is one of the cheapest states for insurance and NJ is one of the higher states, after comparing shop and car rates with Damon. His rates are about 10X what I'm paying! Quote Link to comment Share on other sites More sharing options...
Keith Browning Posted January 3, 2010 Share Posted January 3, 2010 Just for giggles I contacted the following to see what information I get back: Allstate Farmers Geico Liberty Mutual Nationwide Travelers State Farm insurance.com insurancequotes.com progressive.com Quote Link to comment Share on other sites More sharing options...
Keith Browning Posted January 9, 2010 Share Posted January 9, 2010 Update. I got no useful information from any of them. Only 6 replied and out of them I either got "we don't sell insurance in your state " or "please contact a service representative to discuss your insurance needs" or something to that effect. I guess it comes back to discussing this issue with your insurance carrier. Quote Link to comment Share on other sites More sharing options...
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