Operator Guide · Updated 18 May 2026
Tradie insurance, explained
The eight policies an Australian tradie typically needs, public liability, workers compensation, tools of trade, commercial vehicle, professional indemnity, home warranty, contract works, and personal accident. Coverage levels, premium ranges, and how to read a Certificate of Currency.
Section 1, The Policy Stack
Eight policies, ranked by must-have
A typical tradie business carries 4 to 6 of these policies at any given time. Public liability and workers comp are non-optional the moment you put a tool to a job or hire your first apprentice. The remainder are conditional on what kind of work you do and who you contract for.
Public Liability
$10M to $20M cover · $600 to $2,000 / year
Covers third-party property damage and bodily injury caused by your work. The headline figure ($20M) is the maximum payout per claim. Commercial sites usually demand $20M; residential is fine at $10M. PL premium scales with revenue, trade risk profile (roofing > carpentry), and claims history. Almost every head contractor and council job site requires sighting your current Certificate of Currency before site induction.
When a claim is typically triggered
- Hot-water pipe burst floods downstairs neighbour's unit
- Dropped ladder cracks client's tiled floor
- Spark from grinder ignites client's roof underlay
- Roof tile dislodged in wind drops onto parked car
Workers Compensation
State-specific scheme · 4 to 8% of payroll for construction
State-run scheme (icare NSW, WorkSafe VIC, WorkCover QLD, ReturnToWorkSA SA, WorkCover WA, WorkSafe TAS, WorkSafe ACT, NT WorkSafe). Compulsory for any employer of any tradie, including apprentices and casuals on one-off shifts. Construction-trade premium rates are 2 to 3x retail because of injury frequency. Failure to insure is a strict-liability offence, fines + personal liability for any injury.
When a claim is typically triggered
- Apprentice falls from ladder, breaks wrist
- Tradie cuts hand on circular saw
- Back strain from lifting heavy materials
- Hearing loss claim 5 years after employment ended
Tools of Trade
Insured value · $300 to $800 / year per $20k cover
Covers theft, loss, and damage to your tools, power tools, hand tools, ladders, generators, compressors, welders. Critical once your kit exceeds $10k. Sole-trader tradies routinely carry $30k+ in tools. Many policies bundle with vehicle and contents under a 'Trade Pack'. Check whether your policy covers tools left in a locked ute or trailer overnight, the most common claim.
When a claim is typically triggered
- Ute broken into overnight, power tools stolen
- Trailer stolen from job site with full kit inside
- Compressor or generator damaged in transit
- Fire on site destroys gear left overnight
Commercial Vehicle
Commercial use · $2,000 to $5,000 / year
Commercial vehicle insurance, different from a personal policy. Premium reflects the higher use, heavier loading, and commercial liability exposure. Failing to declare commercial use voids claims at the worst possible moment. Branded signage on the ute is fine, but failing to disclose tool-carrying / sub-letting / multiple drivers is the most common refused-claim cause.
When a claim is typically triggered
- At-fault accident driving to a job
- Theft of ute with signed-on company branding
- Hail damage at home overnight
- Sub-driver collision (must be listed)
Professional Indemnity
$1M to $5M cover · $800 to $2,500 / year
Covers claims arising from professional advice, design errors, or certification mistakes. Required for tradies who design as well as build (drafted plans, structural advice), and for any tradie issuing Certificates of Compliance, energy ratings, or completion certificates. Distinct from PL, PI covers the advice; PL covers the workmanship.
When a claim is typically triggered
- Wrongly issued electrical CoC, later fault
- Design mistake on built work causes structural defect
- Energy-rating error breaches BASIX requirement
- Advice on scope leads to client cost overrun
Home Warranty Insurance
Project-by-project · 0.5 to 1.5% of contract value
Required for residential building work over a state-specific threshold (typically $12k to $20k). Covers the homeowner against non-completion (builder dies, disappears, or becomes insolvent) and major defects. Issued via NSW HBCF (icare), VIC Domestic Building Insurance (VMIA), QLD Home Warranty Scheme (QBCC). Without HWI, the contract is unenforceable and you can't take a deposit.
When a claim is typically triggered
- Builder dies mid-project, homeowner claims completion
- Builder insolvent, incomplete work covered
- Major structural defect discovered 4 years post-completion
- Non-completion due to abandoned project
Contract Works (CWI)
Per project · 0.1 to 0.5% of contract value
Construction All Risks insurance, covers the works under construction against fire, storm, theft, vandalism, and malicious damage during the build. Different from PL: CWI insures your half-built work; PL insures third parties for what your finished work does. Often required as a separate line item in head-contractor pre-qualification.
When a claim is typically triggered
- Half-built extension destroyed by storm
- Vandalism / theft on site overnight
- Fire during fit-out damages installed work
- Materials damaged on site before installation
Personal Accident & Illness
Income replacement · $1,200 to $3,500 / year
Sole-trader tradies aren't covered by their own workers compensation (workers comp doesn't cover the business owner). A PA policy replaces income if you're injured or ill and can't work. Premium scales with chosen benefit (e.g. 75% of income), waiting period (14, 30, 90 days), and benefit period (2 years, 5 years, to age 65).
When a claim is typically triggered
- Sole-trader breaks leg playing weekend sport
- Cancer diagnosis stops work for 6 months
- Mental-health condition causes extended absence
- Heart attack, return-to-work staggered over months
Section 2, Reading a Certificate of Currency
Six things to check on every Certificate of Currency
Most refused claims come down to a mismatch between what the policy says and what the job actually involved. Six minutes of checking each year saves the policy when it matters.
Confirm the named insured matches your trading name
If you trade as 'JD Plumbing Pty Ltd' but the policy says 'John Doe', a claim under the Pty Ltd's contract may be refused. Match the policy exactly, trust name, company name, or sole-trader name as it appears on your ABN registration.
Check the policy period is current
Certificates of Currency are stale fast. Head contractors typically refuse a COC older than 30 days. Set a calendar reminder 60 days before renewal, most claim disputes happen because the cover lapsed before the incident.
Read the trade-activity description carefully
Insurers underwrite to specific trade activities. A 'plumbing' policy may exclude gasfitting; a 'carpentry' policy may exclude structural framing; a 'painter' policy may exclude rope-access work. Anything outside the listed activities is not covered.
Note the excess on each section
PL excess of $1,000 is standard. Tools-of-trade excess often runs $500 to $1,000. A high-excess policy can be cheaper to write but expensive when you claim. Match the excess to your cash-flow tolerance.
Confirm subcontractors are covered
If you sub-let work to other licensed tradies, your PL may exclude their work unless they're explicitly listed. Either insist each subbie has their own PL (and sight the COC), or add them as 'principals' on your policy.
Watch for height and depth exclusions
Working above 7.5m or below 3m (deep excavation) is excluded from many off-the-shelf policies. Roofers, antenna installers, and excavator operators usually need an endorsement or a specialised policy.
Section 3, Trade-specific risk profiles
How premium varies across trades
Insurers price by the claim history of the trade. Roofing and electrical sit at the high end because of fall and fire-loss risk; painting and tiling sit lower.
| Trade | Risk band | Typical PL premium |
|---|---|---|
| Painter | Low | $600 to $900 / yr |
| Tiler | Low | $700 to $1,000 / yr |
| Landscaper | Low to Med | $800 to $1,100 / yr |
| Carpenter / Joiner | Medium | $900 to $1,400 / yr |
| Plumber | Medium | $1,000 to $1,500 / yr |
| Electrician | Med to High | $1,200 to $1,800 / yr |
| HVAC / Refrigeration | Med to High | $1,200 to $1,800 / yr |
| Roofer | High | $1,500 to $2,500 / yr |
| Demolition / Excavation | High | $2,000 to $4,000 / yr |
Premium ranges assume $20M PL cover, $1m to $3m revenue, and a clean 5-year claims history. Quotes from underwriters such as CGU, Allianz, Vero, and trade-specialist brokers will vary.
Practical tips on the insurance stack
Print COC details on every quote
A client asking for proof of insurance shouldn't catch you scrambling. Print your PL insurer, policy number, sum insured, and expiry date as small print on every quote and invoice. Triples your credibility on residential jobs and kills the back-and-forth on commercial pre-qualification.
Re-rate every two years
Premiums creep up at renewal, even with no claims. Get broker quotes every 2 years to keep the underwriter honest. Switching insurers is administratively trivial; your tax deduction and head-contractor compliance is unchanged.
The PI / PL boundary
If you draft plans, recommend products, or issue completion certificates, you're giving professional advice, and PL doesn't cover advice claims. The cheapest insurance mistake in trades is the absence of PI for an electrician who signs CoCs or a plumber who certifies backflow installs.
Track expiry dates ruthlessly
A lapsed COC during a single incident is the most common way tradies end up uninsured. Set a renewal reminder 60 days out, a second one 30 days out, and a hard block in your scheduling tool that won't let a new job start if the COC isn't current.
Frequently Asked Questions
Is public liability insurance legally required for tradies in Australia?
PL isn't legally required at the federal level, but it's effectively mandatory in practice. Every commercial site induction, council job, owner-builder contract, and home-warranty scheme will require sight of your current Certificate of Currency. Working without PL also exposes your personal assets to a claim, so the practical answer is yes.
How much public liability cover do I need as a tradie?
$10 million covers most residential work and small commercial. $20 million is standard for commercial sites, government tenders, and any work near high-value infrastructure (data centres, hospitals, schools). Some specialty trades, roofing, scaffolding, demolition, sometimes need $50M for major commercial sites.
I'm a sole trader. Do I need workers compensation?
If you have no employees and no apprentices, you don't need workers comp in any state. The moment you hire even one casual labourer for a single day, you do, and the policy must be in place from day one. Sole traders should also consider Personal Accident & Illness cover, since workers comp doesn't apply to the business owner.
What's a Certificate of Currency and how often do I need one?
A Certificate of Currency (COC) is a one-page summary of your active insurance policy, insured name, cover type, sum insured, excess, period, and renewal date. Head contractors typically request a fresh COC for each job, usually no older than 30 days. Your broker or insurer issues these on request, most have a self-service portal.
Does my home warranty insurance cover me from work-related lawsuits?
No, HWI protects the homeowner, not the builder. It pays the homeowner if you can't finish the job or if a major defect appears later. Your own protection against being sued for that defect comes from your PL (during the warranty period for sudden / unexpected damage) and your PI (if you also designed the work).
Can I get one combined policy instead of buying these separately?
Most tradie 'business packs' bundle PL + tools + vehicle + contents into one policy at a single renewal date. Workers comp is always a separate state scheme. PI and HWI are usually separate because they're often issued by different specialist insurers. The bundle saves admin time but check that each component cover is enough for your contracts.
Track COC expiry alongside every job and contract
OneBookPlus stores your insurance details and prints them on every quote and invoice, with renewal reminders before a COC lapses. Built for Australian tradies.
Rather look before you sign up? Open a live demo account with real data in it, or compare the AUD plans on the pricing page.
Reviewed by Bishal Shrestha
About the author
Bishal Shrestha
Founder & CEO, OneBookPlus
Bishal spent a decade running digital projects for Australian small businesses before founding OneBookPlus. He writes and maintains these pages, and publishes what OneBookPlus does not do alongside what it does.
Read the founder bioHow this page was researched
Every figure above is either linked to the body that published it or recomputable from the numbers shown on the page. Plan prices come from the OneBookPlus price registry, so the page and the checkout cannot disagree. Everything said about OneBookPlus describes what the product does today, and the page says so where it does not do something.
From the blog
Related reading for tradies
Practical guides and explainers from the OneBookPlus blog, grouped by topic.
The Dead Register
Australia has 20,495,750 ABN records but only about 2.8 million trading businesses. Every one of the 11,550,322 cancelled ABNs still passes the ATO checksum.
13 min readRead articleThe 91-Cent Gap
The ATO will pay you 91 cents a business kilometre in 2026-27, capped at 5,000 km. That is $4,550. One car in a typical Australian household costs $11,651 a year to run, and $13,666 in Sydney. A research report on the gap, with per-city data for 15 locations.
19 min readRead articleBest Booking Software in Australia
Two identical six-chair salons, one paying $29 a month for booking software and the other $252. Calendly, Acuity, Square, Setmore, Fresha, Timely and SimplyBook.me compared on what they actually cost an Australian business, with prices read from each vendor in August 2026.
15 min readRead articleWhat to Charge Per Hour
A qualified plumber on the award costs $31.63 an hour. Once leave, super, workers comp and the hours you cannot invoice are counted, one billable hour costs about $67 before a dollar of overhead. The full build-up, with 2026-27 figures.
13 min readRead article
More in this guide
Related resources
Start a Trade Business
8-step founder guide, ABN, GST, licence, White Card, insurance, tools, pricing, first clients.
Read Start a Trade BusinessInteractiveTradie Quote Calculator
Interactive estimator combining hourly rate, materials markup, travel, callout, and GST.
Read Tradie Quote CalculatorReferenceTrade Licence by State
State-by-state thresholds, regulators, and invoice requirements for AU trade licensing.
Read Trade Licence by State