Tool Insurance

Boost conversions, revenue and customer satisfaction when selling tools in the UK

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Offer 1-Year Product Protection at checkout to increase conversion, enhance customer value, provide peace of mind, and unlock a new revenue stream.

We’ll repair or replace items that are stolen or damaged either maliciously or accidentally, increasing customer satisfaction and reducing the burden on your customer support.

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The Options

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Inclusive

Provide exceptional peace of mind to your customers by including complimentary 1-year Product Protection Cover with your portable Hand and Power Tools.

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Add-on

Offer 1-Year Product Protection at checkout to increase conversion, enhance customer value, provide peace of mind, and unlock a new revenue stream.

Our insurance solutions securely integrate into your physical and/or e-commerce store, whether through our Shopify app, Magento and BigCommerce native apps, API (compatible with platforms like WooCommerce), or instore portal.

Person using a tablet to browse an online store listing for an 800 electric jigsaw priced at £85.00, showing a red and black jigsaw tool image, customer reviews, and purchase options including LOXA tool insurance buttton.
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Trusted by our retail partners

Logo with the words 'HomeDone!' featuring a bed icon as the 'H', and the tagline 'Everything Your Home Needs'.

“Like how Klarna simplifies offering payment solutions to customers at checkout, Loxa makes it just as easy for us to offer product protection to our customers at the same time. Their seamless integration and tech-first approach made embedding insurance the logical next step for enhancing our customer experience. The support team has been outstanding, and we’re excited to see the impact this will have on customer satisfaction and conversion on our store.”

Shahab Raghbi, CEO, Homedone

Benefits

Offering customers protection at point of sale against perils such as accidental damage and theft is shown to:

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    Enhance customer loyalty and experience

    60% of online shoppers say insurance options offered at checkout would increase odds of making purchase (1)

  • Simple abstract drawing of a smiling cartoon face with glasses and spiky hair

    Boost conversion, aiding your bottom line

    Sitewide conversion rate increase of 11% (2)

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    Differentiate your brand in a competitive market

    Customers willing to pay +21% when considering product protection for purchases (3)

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    Extend the life of products and promote the circular economy

    A 2022 survey showed that 81% expressed that companies should be encouraging people to fix their broken items (4)

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    Reduce customer support costs

You can also service replacements for the retail value of the insured item.
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Cover

This insurance protects portable Hand and Power (mains, batteries, diesel/electric) Tools from accidental or malicious damage that renders the item beyond use, and theft. The cover applies both within the home and a motor vehicle, including when loading/unloading.

Customers also benefit from there being no contribution (excess) payment required toward any claim.

Please note that we can only provide the cover to UK residents and damage in transit, normal wear and tear, and any deliberate harm or neglect, are not covered under the insurance scheme.

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Claims

All claims are handled by expert Claims Handlers at ClaimsSorted who use a specialist repair centre to assess and repair damaged items, if they can. If not, they will arrange a like-for-like replacement, or reimburse the customer to the financial value of the item via a voucher for your store, keeping the customer in your ecosystem.

Stolen items will require a police incident report and will also be replaced on a like-for-like basis, or reimburse the customer to the financial value of the item via voucher.

Scheme Pricing

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    Inclusive Insurance

    Providing this insurance to your customers at no additional cost to them means that you’ll be paying the Gross Premium for every policy distributed, inclusive of Insurance Premium Tax and any administration fees. We’ll bill you monthly for this.

    The Premium will be 2.25%* of the value of the item.

    (*Indicative pricing only at time of publishing)

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    Add-On Insurance

    You will retain a percentage of the insurance premium received for each policy you distribute, exclusive of Insurance Premium Tax. We’ll bill you monthly for the remaining proportion of the premium collected.

    The insurance premium will be 10%* of the value of the item.


    (*Indicative pricing only at time of publishing)

Getting started

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You will need to complete our onboarding form here, which will include KYB screening. We will then issue you with our contract to sign and arrange a kickoff call to ensure integration goes smoothly where we can:

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Install on your test website to make sure it goes well (if you have one)

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Provide engineering capacity, or support your tech team to install efficiently

Do you need to be regulated?

Simply put, our ToBA will allow you to “offer or arrange” insurance contracts that are complementary to your products without being subject to regulation by the Financial Conduct Authority (FCA), by utilising the ‘Connected Contracts’ exemption.

(see PERG 5.11.13 G & ICOBS 2.6.1R).

Who provides the Insurance?

This insurance is provided by Collinson Insurance (a trading name of Astrenska Insurance Limited), which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the United Kingdom (FCA no. 202846).

Loxa is the Policy Administrator and an insurance intermediary authorised and regulated by the Financial Conduct Authority (FCA no. 1018666).

Our Claims Handler for the scheme is ClaimSorted Ltd, a UK subsidiary of ClaimSorted Inc, which is registered in England under Companies House number 15848796.

Contact our team 

References

  1. PYMTS ‘Retail Product Insurance’ study (Jan-2020)

  2. Extend ‘BlendJet’ case study (2021)

  3. Cover Genius ‘The Retail Protection Report’ (Jan-2024)

  4. Circular. ‘Making the case for reuse’ (Nov-2022)