Damage Protection

When you list a tool, you set its replacement value: what it would cost you to buy the same tool again today. That number is the basis for everything below.

1. A renter books your tool. Based on their trust tier, ToolShed authorizes a refundable security deposit on their card (see the table below).
2. If your tool is damaged during the rental, you file a claim. ToolShed reimburses you up to your replacement value, capped at $500 per rental.
3. ToolShed funds eligible claims and is backed by the renter's deposit. The deposit is released to the renter on a clean return.

For a tool with a $400 replacement value rented by a trusted renter, an eligible claim is reimbursed up to $400. That same tool with a new renter is backed by a $400 deposit hold instead.

The deposit hold and the amount ToolShed backs both scale with the renter's trust tier at the time of booking. More trust on the platform means less risk, so trusted renters need no deposit while ToolShed backs the full $500.

Coverage and the deposit do not stack against the same damage event. ToolShed reimburses whichever applies, up to your replacement value and never more than $500 per rental.

Accidental physical damage to your tool that happens during the rental period (pickup to return) and that prevents the tool from being rented again until it is repaired or replaced.

• Theft or loss. File a police report and dispute the rental; this guarantee does not reimburse stolen or lost tools.
• Normal wear and tear consistent with the tool's ordinary use.
• Pre-existing damage present at pickup. Use the condition photos to document the starting state.
• Intentional damage by the renter, which is handled as a separate dispute.
• Consumables (blades, bits, fluids) used up during the rental.
• Damage where you were not the lender of record on a confirmed booking.

File within 72 hours of the booking transitioning to completed. Outside that window the claim is refused. The window keeps disputes fresh while the renter is still reachable and the evidence is clear.

1. Open the booking in the ToolShed mobile app once the tool is returned and the booking shows as completed.
2. Tap Report damage.
3. Upload clear photos of the damage. The pickup and return condition photos from the rental stay on the booking for reference.
4. Describe what happened and enter the repair or replacement cost, up to your replacement value and the cap for the renter's tier.
5. Submit. You receive a decision within three to five business days.

When a claim is approved, ToolShed transfers the approved amount to your connected Stripe account. Funds typically arrive in the same payout window as your other ToolShed earnings.

Reimbursement is capped at $500 per rental. If the repair or replacement cost is higher, you can pursue the renter directly for the difference. ToolShed can share the relevant booking and condition records to support your case.

If a claim is denied or you disagree with the approved amount, reply to the decision email within 14 days with additional evidence. Our team reviews appeals manually and will respond as quickly as we can, usually within a few business days.