Insurance for Tradies

What is Tradies insurance?

When you’re bouncing between job sites, hauling a load of tools on your ute, interacting with clients and tinkering with equipment, sometimes things can go awry. Your equipment could damage someone’s property, your tools could get stolen, or an accident could occur on your worksite. 

Without insurance, you might face some hefty costs – like a new toolkit or medical bills – which can put a major financial strain on your business. And if you’re a sole trader, you may not have anyone else to pick up the slack while you’re off work.  

This is where Tradies insurance comes in. It’s effectively a collective term for the many different types of insurance that could financially protect you and your business if something happens. 

Tradies insurance can apply to many kinds of trades, including: 

What types of insurance should tradies consider? 

There are several business insurance options for tradies that could offer a financial cushion for different situations. 

Public Liability Insurance 

This type of cover can provide financial protection if a third party is injured or has their property damaged and your business is at fault. 

For example, if you’re working on a residential reno and your client gets injured on a misplaced tool, they might file a public liability suit – which could potentially result in a substantial payout from your wallet. Public Liability insurance could help with that sudden cost.  

Professional Indemnity Insurance 

When you’re providing tradie services or dishing out advice – like an electrician telling a client to upgrade their wiring – Professional Indemnity insurance can offer protection if your services or advice lead to negligence or a breach of duty claim. 

For instance, your wiring advice could result in an electrical fault, potentially leading to a legal claim against your business. 

Portable Equipment Insurance 

Depending on what you do, your toolkit can be your lifeblood as a tradie. Without it, you can’t really do the job you were hired for.  

This is why Portable Equipment insurance can be incredibly valuable. It may cover costs if your tools get lost, damaged or stolen – perhaps from your truck or a job site. 

Personal Accident & Illness Insurance 

If you’re a sole trader, Personal Accident & Illness insurance protects you if you’re injured in or outside the job, or get sick and are unable to work. It can provide financial support to cover your living expenses until you can get back on the tools. 

Is Business Insurance compulsory for tradies in Australia? 

There are a couple of must-haves when it comes to insurance: 

• Workers’ Compensation*. A necessity if your business hires anyone, including apprentices and subcontractors.
• Compulsory Third-Party Personal Injury Insurance (CTP)*: If you have a ute, truck, van or another vehicle, you’ll need CTP to cover injuries to other people if you have an accident.

Other types of insurance depend on your industry and where you live. In Queensland and Tassie, for example, sparkies must have Public Liability insurance up to a certain value. The same goes for plumbers in Victoria. 

If you’re in the construction industry, you’ll likely require suitable insurance coverage to obtain a license. This could include Public Liability insurance, Professional Indemnity insurance and Domestic Building insurance. But this can vary between states, so check with your local building administration to make sure. 

*BizCover currently does not offer Workers Compensation insurance and Compulsory Third-Party Personal Injury Insurance. 

How much does Tradies insurance cost?

The cost can vary pretty widely because numerous things influence how much you pay for Business Insurance as a tradie – not least the particular trade you’re in. 

Some of the factors that affect your premiums include: 

• Your business size. Bigger businesses with more employees typically pay more, simply because there’s a higher chance of an accident happening. In some cases, premiums are also affected by business turnover and how long you’ve been operating
• Your equipment. It probably goes without saying that if you own pricey equipment and machinery, like cranes or power tools, you’re probably going to pay more to cover them
• Your location. If you work in an area with a big claims history or if your location is high risk for some other reason (like frequent natural disasters or thefts), it can affect your insurance costs
• The risks of your trade. Different trades have their own levels of risk, which also impacts premiums – like roofers who work at heights
• The policy you go for. There are different coverage limits, excess amounts, add-ons and exclusions that can vary between policies and insurance providers 

How much cover do tradies need? 

Ask yourself these questions to get an idea of how much coverage you might need: 

What’s your trade?

Electricians, handymen, carpenters, plumbers and brickies might all have differing insurance requirements. 

Do you employ other people?

If you’re a sole trader, you may not need as much coverage as someone who has several employees on the books.

How big are your projects?

Small residential jobs and major commercial projects could be worlds apart in terms of insurance needs.

How expensive is your equipment?

Estimate how much it would cost to replace them if they got lost, damaged or stolen.

Are you legally required to have insurance?

There could be legal requirements for your trade in your state and local governments for the jobs you undertake.

What are the potential risks and hazards associated with your trade?

You might have specific risks like electricity, heavy machinery or hazardous materials.

What’s the potential financial impact if something happens?

Think about how much of your income you’d lose if you got sick or seriously injured, or if your gear got stolen.

Where can I find and compare business insurance? 

In partnership with BizCover, compare policies between several leading providers before settling on the right insurance for your tradie business.