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Damage Protection & Claims

ToolShed is not an insurer. This is a limited damage guarantee, not insurance.

How It Works

When you list a tool, you set its replacement value: what it would cost to buy the same tool again today. If the tool is damaged during a rental, you file a claim and ToolShed reimburses you up to that value, capped at $500 per rental. ToolShed funds eligible claims and is backed by the renter's refundable security deposit.

Deposits by Renter Tier

The deposit hold and the amount ToolShed backs both scale with the renter's trust tier at the time of booking:

  • New renters: 100% deposit hold, $0 backed by ToolShed
  • Verified renters: 50% deposit hold, up to $250 backed by ToolShed
  • Trusted renters: no deposit hold, up to $500 backed by ToolShed

Coverage and the deposit do not stack against the same damage event.

What Is Covered

Accidental physical damage that happens during the rental period and stops the tool from being rented again until it is repaired or replaced.

What Is Not Covered

  • Theft or loss (file a police report and dispute the rental)
  • Normal wear and tear
  • Intentional damage by the renter
  • Pre-existing damage present at pickup (the condition photos document the starting state)

Filing a Claim

  1. Open the booking in the app once it shows as completed
  2. Tap Report damage and upload clear photos within 72 hours of return
  3. Describe what happened and enter the repair or replacement cost
  4. Our team reviews the claim and pays approved amounts to your connected Stripe account

If the damage exceeds $500, you can pursue the renter directly for the difference.