The Rising Issue of Tool Theft in the Construction Industry

Tradies usually don’t have the time or inclination to report the theft of their tools to the police, but you can minimise your risks and invest in protection for peace of mind. More than 29,000 tools were reported stolen in Victoria alone in 2022-23 – they were worth a collective $20M.

Preventive Measures and Best Practices

You may be already working to secure your work sites, tools, and equipment – but keep in mind, tradies’ tools are most likely to be stolen in the following order: via forced entry, cut padlocks, a smashed window, or from a vehicle.

Use our checklist for a risk management refresh:

The site:

• Install good lighting, audible alarms, closed circuit television / Hire a security guard service
• Invest in quality lockable storage containers / Lock buildings and vehicles, particularly overnight
• Get to know the site’s immediate neighbours to encourage them to report suspicious activity
• Erect temporary fencing with your contact details to help stop trespassers and thieves
• Co-ordinate deliveries, where possible, so there’s not a huge lag before they’re installed

Your tools and equipment:

• Paint or engrave your gear with a unique mark / Remove batteries to disable your equipment
• Record serial numbers and type of your gear / Photograph your tools for easy identification
• Consider placing an AirTag or other remote security device in with your tools
• Remote lock your tools via smartphone
• Opt for heavy duty padlocks for your storage box and chain them to your vehicle
• Note when materials/tools are moved to and from the site

Understanding Equipment Insurance

Equipment insurance, also known as trade insurance, covers theft or accidental damage of tools and equipment. Most policies require premises to be well-maintained to manage theft risk and thefts to be reported to the police.

This policy typically covers repair or replacement costs for stolen gear at home, worksite, building site, or in transit. It even covers equipment that goes missing while with employees at their homes.

Claims can’t be made on the land or building owner’s insurance unless they were at fault. Other exclusions include:

– Types of accidental damage (e.g., wear and tear, computer viruses, flood, outdoor damage)
– Open-air theft
– Motor vehicles – a specific policy is needed for these
– Loss of earning capacity related to the missing item.