Guidance, not advice. General information, not tailored insurance advice, and no specific product is recommended. Check your own policy documents and talk to a broker or insurer. As at May 2026; insurers' terms and products change.
There are three separate things to insure, and tradies constantly blur them: the vehicle itself, your gear while it's moving, and your gear once it's off the van. This guide pins down how vehicle cover and "stuff in the van" interact and where the gaps are; the tools detail is in Tools & Income Protection Insurance.
The vehicle itself
In Australia, Compulsory Third Party (CTP) insurance — the "green slip" in NSW — covers people injured in a crash and is bundled with your registration; it's the compulsory part. It does not cover damage to vehicles or property. On top of that you choose commercial vehicle cover for the ute or van — comprehensive, third-party property damage, or third-party fire and theft — rated for business use. That cover protects the vehicle against accident, fire and theft, but the contents (your tools, materials, a customer's kit) are usually excluded or covered only to a low limit unless you add cover. The key point: vehicle cover insures the vehicle and your road liability — not reliably what's inside it.
Goods/tools in transit vs tools at site
- Goods (or tools) in transit protects your tools, materials and sometimes a customer's goods while they're being moved — loaded, carried, or unloaded from the vehicle. Typical risks: theft from the van, crash damage, loss during loading. It's sold as an add-on or a standalone policy, and some wordings also cover tools in a locked building.
- Tools at site (general tools cover, often part of a tradesman package) covers tools away from the van — a locked site store, a workshop, sometimes home — and can apply around the clock, subject to security conditions.
The difference that matters: transit cover follows the gear between locations; tools cover protects it at a location. Neither is legally required (only your rego and CTP are), but most tradies need both.
Who needs what
- Most tradies with a van — commercial vehicle cover plus separate tools cover, and a goods-in-transit add-on if you carry a lot of kit between jobs.
- Trades moving high-value or customers' goods (a kitchen fitter carrying units, a removalist) — vehicle cover plus goods-in-transit with a limit that reflects the load value, which clients often insist on.
- Home/workshop-based with low-value kit in the van — vehicle cover, leaning on tools-at-site cover for the workshop with minimal transit cover.
Exclusions and gotchas (the real value)
- Overnight theft from the van is commonly excluded if the van was unlocked, had windows open, had keys left in or near it, or wasn't parked where the policy specifies (e.g. a locked compound).
- No proof of ownership — some policies exclude tools you can't prove you own (keep receipts, photos and serial numbers).
- Unattended vehicles — theft may only be covered if the tools were and the vehicle locked, with specified security (alarms, deadlocks).
- Claim and single-item limits — a total cap and a per-item cap that bites if you carry expensive lasers or specialist tools, which often must be individually declared.
- Damage types — wear and tear, poor packing, faulty workmanship and contamination are usually excluded; cover targets sudden, unexpected events.
Two tradies with "tools in transit" on the paperwork can have very different actual cover — read the schedule and endorsements (see What Insurance Doesn't Cover).
How the covers interact
They sit alongside each other, not instead. If your van is stolen overnight with tools inside, you usually end up with two linked claims — one on the vehicle cover for the van, one on the tools/goods cover for the contents — each with its own excess and conditions. The security you put in place is what makes both claims survivable (see Vehicle Security & Tool-Theft Prevention).
Common mistakes
- Assuming the commercial vehicle policy covers the tools inside (it usually doesn't).
- Carrying high-value tools without declaring them, then being capped by a per-item limit.
- No goods-in-transit cover when a client requires it for carrying their materials.
- Not reading the overnight-parking and security conditions until after a theft.
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