The holiday season is the most joyous time of the year, and it’s when you might receive a gift from family or friends that you can use in your professional life. How great would that be?

Or, if you get the tools you’ve been dreaming of for ages, why not start your own business like you’ve always wanted?

For example, a general contractor may receive a new power tool combo kit, or a professional photographer may get a new high-powered lens for their camera. If the present you receive is something you will use for work, you need to think about protecting it from damage or loss. After all, what would be worse than getting an expensive, new item you need to do your job that is stolen or damaged? Unfortunately, your home, condo, or tenant insurance won’t cover these items if you use them for work.

A new power drill received as a present.

Download Our FREE Insurance Whitepaper

Learn everything you need to protect your small business.

Your email address will be used by Zensurance to provide latest news, offers and tips. You can unsubscribe at any time.

Zensurance - Small Business Insurance Guide

You might have a warranty for the item, but warranties are usually limited in what they will cover. That’s why it’s worthwhile to contact your broker and let them know what new tool or item you have and its value so they can ensure your business insurance policy covers it.

Adding New Items to Your Business Contents Inventory

If you have commercial property insurance to protect your workspace, studio, or office, it’s wise to update your contents inventory annually. That way, if you must file a claim, you’ll have accurate documentation of all the contents in your place of business and their values. Take photos of the items and their serial numbers, and ask the person who purchased the tools for you to share the receipts with you. Your insurance provider will want to know the cost of the damages or losses you suffered following an insurable event, such as a fire. 

Insurance providers typically categorize your business items within a commercial property policy in one of three ways:

  • Inventory is the goods, merchandise, or stock you sell to consumers or partners that generate revenue for your company or profession. 
  • Equipment counts as your business’s fixed assets, such as machinery and tools.
  • Business contents can include the furnishings in your office and computer equipment, office furniture, and point-of-sale (POS) terminals.

In some cases, commercial property coverage may not be the right type of insurance for that dazzling new holiday present you received. Instead, adding tools and equipment coverage to your policy may be necessary. Furthermore, if that new tool or equipment means you can add a new service and grow your business, you should inform your broker before you start doing that.

For a general contractor, tools and equipment insurance provides financial support for repairing or replacing these items if they’re lost, damaged by fire or flooding, vandalized, or stolen (either from your office or a job site). 

For other professionals, like photographers, a photography insurance policy includes coverage for your camera gear in your studio or offsite at a photo shoot.

Get an Insurance Review and Update Your Policy

It’s wise to talk to your Zensurance broker and ask for an annual review of your policy. 

Regardless of the type of small business you own or your profession, your business changes as it grows. Therefore, ensuring your policy’s coverage limits account for all your tools and equipment and other potential risks is vital to protecting your assets.

If your policy is up for renewal or will be soon, get in touch with us. Let’s explore how we can provide you with continuous coverage for your business by shopping our partner network of more than 50 insurance providers. Different providers offer various coverages and coverage limits at different prices. It’s possible we can help you save money on your annual premium by shopping your rate.

Recent Posts

Share This Story:

About the Author: Matt Jardine

Matt Jardine is a licensed insurance broker and Team Lead, Property & Hospitality, at Zensurance.