Allowing merchants to offer their trade customers tool insurance protection at the point of purchase, Loxa has recently gained additional funding to enable it to boost its offer to stockists.
With UK tool theft reportedly hitting one incident every 12 minutes, Loxa states that it has raised £2.7m in Seed funding to “place accidental damage and theft protection at the exact point tradespeople buy their tools.”
The FCA-authorised embedded Insurtech notes that UK tradespeople face a theft epidemic with some 44,514 tool thefts recorded by police in 2023, and the stolen value estimated at £98 million annually. And even when tools aren’t stolen, they can still break on the job — the average professional toolkit is said to be worth £4,300, and a damaged tool means income stops immediately.
Jamie Hamer, Loxa Co-Founder & CEO, commented: “For a tradesperson, tools are how income is earned, not optional equipment (but) a livelihood. When something breaks on a job, the cost isn’t just the repair — it’s every hour offline, every job delayed, every customer let down.
“The industry has accepted that as an unavoidable risk for too long. (However) Loxa puts protection at the exact moment a tradesperson buys their tools, so that when something goes wrong, the only thing they need to focus on is getting back to work.”
Since launching in 2023, Loxa states that it has already “grown to more than 45 live retail partners” across a variety of categories to offer its clients potential new revenue streams. And now “hundreds of further conversations are ongoing with merchants who recognise the value of offering their customers comprehensive product protection at the point of purchase.”
The recent fundraise is also said to mark a step-change in what the provider can offer, including the ability to “build and launch insurance schemes tailored specifically to the needs of retail partners and their products, rather than only suggesting off-the-shelf solutions.”
The business joined NMBS as a Supplier Member last year. In a recent post on LinkedIn, Chris Hayward – the former NMBS CEO who is currently working with the organisation as an Advisor — commented: “Spend any time with tradespeople, and the same worry comes up. Not a difficult client, not a delayed delivery. What happens on the day my tools are stolen?
“The average incident costs over £2,000 in stolen equipment and lost earnings combined. For a long time, the tools industry has had no credible answer at the point of sale. Manufacturer warranties cover defects. Not a stolen kit. Not an accidental drop on site. The need was obvious. The product didn’t exist.”
Chris continued that Loxa’s ‘protection at the point of purchase’ makes it “simple for merchants to integrate, and an easy sell to tradespeople.” He added: “Confidence at checkout drives conversion, whether at the Trade Counter or online. Peace of mind after the sale drives down returns.
“Both show up in the numbers with a Loxa tools retailer, one month in, already claiming an 10% increase in conversion and 35% fewer returns.”
For more information on Loxa, visit www.loxacover.com
