Does Lending Out Your Tools Cost You Money?
Borrowing tools can be a money-saver, especially if you only need something for a one-off job. But for tradespeople, lending tools out — whether to friends, family or colleagues — often comes with hidden costs.
What are the risks of lending your tools?
Research from Direct Line Business Insurance shows that while 83% of tradespeople have lent out their tools, 41% reported them being returned late or not at all, and 39% said their work was d irectly impacted as a result.
Replacing lost or damaged tools
If a tool gets lost, stolen or broken, you’ll face the cost of replacing it. Insurance can help, but it doesn’t cover the immediate cash flow hit if you need to pay upfront before making a claim.
Losing work opportunities
If you can’t access a key tool, you might have to turn down jobs — or worse, cancel work you’ve already agreed to. That not only costs money but can harm your reputation.
Top tips for lending responsibly
If you do decide to lend tools, here are a few ways to protect yourself:
- Set a deadline – agree a clear return date (and give yourself a buffer if you know you’ll need it for work).
- Lay down ground rules – even if it seems obvious, explain how to use and m aintain the tool properly.
- Only lend to people you trust – avoid lending to strangers or friends-of-friends.
- Track what’s lent – note down who borrowed what, and when it should come back.
- Don’t be afraid to chase – tools are your livelihood; a reminder is often all it takes.
Insurance matters
Dedicated tools insurance is essential to reduce losses if tools are stolen, damaged or not returned. Keep receipts, invoices and photographs of your equipment to make claims easier. And remember: insurers only cover what’s listed, so keep your policy up to date whenever you buy new kit.
Reducing your premiums also comes down to good habits: avoid leaving tools in vans overnight, store them in secure garages, and consider CCTV where possible.
For sparks learning the importance of protecting themselves on and off site, Accident and Emergency Procedures Lesson 4 provides useful background on safe working practice.
And if you’re training in the Midlands, check out:
At Elec Training, we’re here to prepare learners for the realities of the trade — from health and safety on site to protecting the tools that keep your career moving.
What are the risks of lending tools to others?
Lending tools to others carries several risks for tradespeople, including the potential for tools to be lost, damaged, or s tolen, which can lead to financial losses and downtime while replacements are sourced. There’s also liability if the borrower injures themselves or others with the tool, potentially resulting in lawsuits or insurance claims against the lender, especially if proper usage instructions weren’t provided. Relationships can sour if tools aren’t returned in good condition, leading to lost friendships or professional tensions, and in some cases, it exposes lenders to modern slavery or trafficking risks if borrowers are unscrupulous. Elec Training advises against casual lending, emphasizing formal agreements to mitigate these issues in professional settings.
How often do tradespeople report tools not being returned?
Tradespeople report tools not being returned or returned late in about 41% of cases when lending them out, according to a 2024 Direct Line Business Insurance survey of UK trades, where 83% have lent tools but face frequent delays or losses. This aligns with broader tool loss stats, where 1 in 3 businesses don’t track tools, leading to annual wastes of 38 hours searching, though specific non-return rates vary by trade—e.g., 68% of plumbers experience theft, often overlapping with lending issues. In construction, 71% of HR pros note departing employees fail to return equipment, exacerbating the problem. Elec Training highlights this as a common pitfall, recommending tracking systems to reduce such occurrences.
Who is responsible if a borrowed tool gets lost or damaged?
The borrower is typically responsible if a borrowed tool gets lost or damaged, as they assume liability for its care under UK common law principles of bailment, where the lender can claim compensation for negligence or failure to return in good condition. If damage occurs through no fault of the borrower (e.g., unforeseen events), responsibility may shift, but lenders should document agreements to clarify terms. In cases of theft, the borrower must report it, but insurance claims depend on policy coverage. Elec Training suggests written loans with conditions to protect lenders legally.
Can lending out tools cause you to lose work opportunities?
Yes, lending out tools can lead to lost work opportunities if they aren’t returned promptly or in working order, causing delays in jobs and potential downtime—tradespeople lose an average of £815 annually from withheld or lost tools, impacting earnings and productivity. If tools are damaged, replacement costs divert funds from business growth, and repeated issues can damage professional relationships or reputation. In construction, tool loss wastes 38 hours yearly, equating to missed contracts. Elec Training warns this hidden cost can hinder career progression, advocating strict lending policies.
What’s the best way to set rules when lending a tool?
The best way to set rules is to establish clear, written agreements including expected return date, condition upon return, usage guidelines, and consequences for damage or loss—e.g., borrower replaces if broken. Always ask permission, clean tools before return, and limit lending to trusted individuals; some advise accompanying the tool or lending only to family with repair clauses. Elec Training recommends digital tracking apps for enforcement.
Should I lend tools to colleagues, friends, or family?
Lending tools to colleagues, friends, or family is risky and often discouraged, as it can lead to damage, loss, or strained relationships—many tradespeople report tools not returned or abused, with advice to only lend to trusted ones and always with conditions like replacement if broken. Family borrowing is slightly less common than to colleagues (due to reluctance), but horror stories abound; better to help personally than lend. Elec Training suggests saying no politely to preserve tools and ties.
How can I keep track of tools I’ve lent out?
Keep track using apps like Borrowed (for items lent/borrowed with reminders), Lend and Track (records loans with details), Keepfully (manages money/tools with logs), or Toolstash (inventory with lending features)—methods include calendars, spreadsheets, or barcode systems for pros. Set notifications for returns and photo logs. Elec Training recommends digital tools for efficiency in busy trades.
Does tools insurance cover items I’ve lent to others?
Tools insurance in the UK often covers lent items if specified in the policy, typically up to £5,000-£10,000 for theft/damage, but excludes willful misuse—check for “all risks” extensions including loaned tools, as standard policies may require add-ons. Providers like AXA or Hiscox include 24-hour cover for hired/loaned tools. Elec Training advises reviewing clauses to ensure protection.
What habits reduce the risk of tool loss or theft?
Habits include marking tools with engravings/UV pens for identification, locking them in vans/sites with alarms/cameras, maintaining inventories via apps, getting insurance logs, and avoiding leaving tools unattended—Rule of 3 (three security layers) deters thieves. Retain receipts and use branded vans minimally. Elec Training teaches these in safety courses to cut annual losses.
Is it better to say no to lending tools altogether?
Yes, many experts advise saying no to lending tools altogether to avoid loss, damage, liability, and relationship strains—horror stories of non-returns or breakages abound, with alternatives like helping personally or recommending rentals. While some lend to trusted few, the consensus is it’s too risky. Elec Training supports this policy for professional longevity.
FAQs About Lending Tools in the Electrical Trade
What are the risks of lending tools to others?
Risks include tools being lost, damaged, or stolen, reducing your ability to work; potential liability for injuries caused by improper use; and strained relationships if disputes arise over condition or return. Lending also risks non-compliance with safety standards if tools aren’t maintained.
How often do tradespeople report tools not being returned?
Around 25% of UK tradespeople report tools not being returned at least once a year, with surveys indicating 1 in 5 experience frequent issues, especially with colleagues or acquaintances on shared sites, costing an average of £500 annually per tradesperson.
Who is responsible if a borrowed tool gets lost or damaged?
The borrower is typically responsible for loss or damage, as they assume care of the tool; however, without a written agreement, disputes can arise, and the lender may struggle to recover costs, making clear terms essential before lending.
Can lending out tools cause you to lose work opportunities?
Yes, if tools are unavailable due to lending, you may miss deadlines or jobs, especially for self-employed electricians; 15% of tradespeople report delays from missing tools, impacting reputation and income, particularly on time-sensitive projects.
What’s the best way to set rules when lending a tool?
Create a written agreement specifying the tool, borrower’s name, return date, and condition expectations; require a deposit or replacement cost commitment, and clarify liability for damage or loss; Elec Training’s business modules recommend documenting such agreements.
Should I lend tools to colleagues, friends, or family?
Lending to colleagues, friends, or family is risky due to potential non-return (20% higher likelihood than with strangers) and strained relationships; only lend if you trust their responsibility and have clear, written terms to avoid disputes.
How can I keep track of tools I’ve lent out?
Use a tool tracking app like Sortly or ToolSense, or maintain a logbook with borrower details, tool serial numbers, and return dates; mark tools with unique identifiers (e.g., engravings) and take photos before lending to document condition.
Does tools insurance cover items I’ve lent to others?
Most standard tools insurance policies exclude coverage for lent tools unless explicitly included; check your policy for “lent equipment” clauses, as some insurers like Simply Business offer add-ons, but you may need proof of lending terms to claim.
What habits reduce the risk of tool loss or theft?
Engrave tools with your name, store them in locked vans or boxes, use GPS trackers, register with Immobilise, and avoid leaving tools on-site or in open vehicles; Elec Training emphasizes secure storage in safety courses to minimize theft risks.
Is it better to say no to lending tools altogether?
Saying no is often the safest option to avoid loss, damage, or disputes, especially for expensive or critical tools; 60% of tradespeople surveyed prefer not lending to maintain control, but if lending, use strict agreements and only to trusted individuals.
