Insurance for Trades & Contractors
Cover options for tradies and contractors working on client sites, from liability and tools to work vehicles.
Industry overview
Tradies spend most of their working day on someone else's property. A small slip with a grinder, a leaking fitting or a ladder left in a walkway can lead to a claim against the business.
Many contractors also need to show certificates of currency before they can start on a job. A broker can help you understand what a contract asks for and which policies may respond to the risks of your trade.
Common business risks
Damage to client property
Work on homes and commercial sites can lead to accidental damage, such as water from a plumbing job or scorch marks from hot work. The client may seek compensation from your business.
Injury to members of the public
Leads, tools and open trenches can create trip hazards for occupants and passers-by. A third party injury claim can be costly to defend.
Theft of tools and equipment
Tools left in utes, vans or on unsecured sites are a common target for theft. Replacing them can stop work until new gear arrives.
Work vehicle accidents
Your ute or van is often both transport and storage. An accident can damage the vehicle and the equipment inside it at the same time.
Contract and certificate requirements
Head contractors and property managers often set minimum insurance requirements. Missing or outdated cover can delay payment or mean losing the job.
Defective workmanship allegations
A client may claim that work was done poorly and caused later damage. Policies treat the cost of fixing your own work differently from resulting damage, so the wording matters.
Insurance commonly considered
Businesses in this sector often look at the following types of cover. What suits you depends on your operations, contracts and assets.
- Trades InsuranceTrades packages may bring together liability and tools cover in a single policy, subject to its terms.
- Public & Product Liability InsuranceContractors working on client premises often need public liability to meet contract and site entry requirements.
- Commercial Motor InsuranceUtes, vans and light trucks used for work may need cover that reflects business use and the equipment carried.
- Plant & Machinery InsuranceTradies who own mini excavators, trailers or larger plant may look at cover for damage and breakdown.
- Business Interruption InsuranceSome trades consider this cover where a fire or similar insured event at their workshop could stop them trading for a period.
Risk management considerations
- 1Keep a current certificate of currency on hand and check it matches each contract's stated requirements.
- 2Store tools in locked vehicles or site boxes and keep an up-to-date list with serial numbers and photos.
- 3Record job details, including site photos before and after work, to help if a dispute arises.
- 4Use written quotes and contracts that set out the scope of work and who is responsible for what.
- 5Follow work health and safety duties on site, including barriers, signage and safe storage of leads and materials.
- 6Tell your broker when you take on a new type of work, as some policies limit cover to declared activities.
Why broker support helps
Trade contracts can include indemnity clauses and insurance requirements that are easy to miss. A broker can read through them with you and explain how they relate to your current policies.
When a claim happens, having someone to help gather information and liaise with the insurer can save you time off the tools. A broker can also review your cover as your business grows or changes.
Frequently asked questions
Do I need public liability insurance to work as a tradie?
Public liability is not required by law for every trade, but many head contractors, builders and property managers ask for it before you start. Some state licensing bodies also have their own insurance requirements for certain trades. A broker can explain the general options so you can check what applies to your work.
Are my tools covered when they are in my ute overnight?
It depends on the policy. Some tools cover includes theft from a locked vehicle, while other policies have conditions about visible signs of forced entry or time of day. Reading the policy wording or asking a broker can help you understand the conditions.
What is a certificate of currency?
A certificate of currency is a document from the insurer confirming that a policy is in force on a given date. It usually shows the type of cover and the limit. Contractors are often asked for one before starting work on a site.
Does trades insurance include workers compensation?
Workers compensation is arranged separately through each state or territory's scheme or authorised insurers. It is not part of a standard trades package. If you employ staff, you may need to check your obligations with the relevant state authority.
Talk to us about insurance for your business.
Tell us how your business operates and we'll discuss the types of cover that may be relevant.