Tool Theft: An expert view on how to reduce the risk

By Danny BallPublished On: July 28th, 2025Categories: Top Stories

With over £193m lost to tool theft in 2024, Martin Parker Head of Construction at Markel shares insights on how to reduce tradespeople’s risk

Tool theft remains a persistent and significant risk for UK tradespeople in 2025. Despite increased awareness and improved practical security solutions, incidents of tool theft continue to occur at alarmingly high rates, particularly in urban centres. Vans parked overnight are especially vulnerable, with self-employed tradespeople reporting combined losses exceeding £193 million in 2024[1] alone.

Earlier this year, Theft of Tools of Trade (Sentencing) Bill passed its first reading in Parliament. This proposed legislation seeks to reclassify tool theft as a Category 2 offence, reflecting the severe disruption and substantial financial impact such thefts impose on businesses. Beyond the direct cost of stolen tools, victims face additional burdens, including project delays, reputational damage, and repairs to damaged vehicles.

Tool theft is not an isolated occurrence for many tradespeople as repeat offences are common, compounding financial exposure and hindering the ability to complete projects on time and secure payment. These repeated incidents highlight the necessity for adequate insurance coverage and effective risk management strategies.

Insurance coverage for tools

While standalone tool theft policies exist, most tradespeople opt for coverage through a broader tradesman or commercial combined insurance policy, where tool theft can be added as a specific section of cover. Policyholders have flexibility to set coverage limits and define the extent of protection, which is particularly prudent for those relying on high-value equipment.

Typically, insurance policies will provide cover for tools stolen from locked vans or onsite storage, subject to specific conditions. However, insurers often restrict or exclude overnight cover unless the van is secured in a locked garage or gated compound. Vans parked overnight on a public road or private driveway are generally only covered up to a limited amount, commonly £5,000 or less, and insurers may require tools to be secured in a locked box within the van or additional security features to be in place.

Although the optimal risk mitigation strategy is to remove tools from vehicles overnight, insurers recognise that this is not always feasible. In such cases, enhanced security measures, such as parking in secure locations, fitting alarms, or installing heavy-duty fixed toolboxes inside vans, are recommended to reduce the likelihood of theft.

During working hours, tools stored in vans parked near or on a contract site are generally covered, as the presence of workers and increased daytime activity significantly reduces the risk of theft. However, insurers typically require that any tools left onsite overnight or outside of working hours are secured in a locked, steel container or tool vault.

Evolving insurance landscape

Historically, insurance cover for tools was broader, but as tool theft trends have persisted, insurers have tightened coverage terms and increased risk management requirements. These measures aim to limit insurer exposure and encourage proactive security measures by tradespeople.

Many insurers enforce certain mandatory actions such as removing tools from unattended vehicles overnight and ensuring that higher value equipment is photographed and serial numbers recorded. Failure to adhere to these measures by, for example, leaving tools in a van parked on a driveway overnight, could result in a claim being excluded.

Additional recommended practices include parking vans with their rear doors against a solid object to restrict access, installing security lighting on premises, and considering the use of advanced deterrents.

Forensic marking and asset tagging are effective deterrents and facilitate recovery of stolen equipment. Insurers view these positively, as unmarked tools have a substantially lower recovery rate. GPS enabled trackers on high-value assets provide real-time location data, enhancing the chances of recovery. Furthermore, maintaining an up-to-date inventory of marked tools can expedite the claims process and support ownership verification if stolen tools are retrieved.

[1] https://www.simplybusiness.co.uk/knowledge/trades/tool-theft-in-2025-tougher-sentences-coming-soon/