Operator Guide · Updated 18 May 2026
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
A typical tradie business carries 4–6 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.
$10M–$20M cover · $600–$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
State-specific scheme · 4–8% 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 2–3x 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
Insured value · $300–$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
Commercial use · $2,000–$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
$1M–$5M cover · $800–$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
Project-by-project · 0.5–1.5% of contract value
Required for residential building work over a state-specific threshold (typically $12k–$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
Per project · 0.1–0.5% 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
Income replacement · $1,200–$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
Section 2 — Reading a 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.
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.
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.
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.
PL excess of $1,000 is standard. Tools-of-trade excess often runs $500–$1,000. A high-excess policy can be cheaper to write but expensive when you claim. Match the excess to your cash-flow tolerance.
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.
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
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–$900 / yr |
| Tiler | Low | $700–$1,000 / yr |
| Landscaper | Low–Med | $800–$1,100 / yr |
| Carpenter / Joiner | Medium | $900–$1,400 / yr |
| Plumber | Medium | $1,000–$1,500 / yr |
| Electrician | Med–High | $1,200–$1,800 / yr |
| HVAC / Refrigeration | Med–High | $1,200–$1,800 / yr |
| Roofer | High | $1,500–$2,500 / yr |
| Demolition / Excavation | High | $2,000–$4,000 / yr |
Premium ranges assume $20M PL cover, $1m–$3m revenue, and a clean 5-year claims history. Quotes from underwriters such as CGU, Allianz, Vero, and trade-specialist brokers will vary.
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.
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.
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.
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.
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.
$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.
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.
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.
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).
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.
OneBookPlus stores your insurance details and prints them on every quote and invoice — with renewal reminders before a COC lapses. Built for Australian tradies.
Last reviewed and updated: by Bishal Shrestha
About the author
Founder & CEO, OneBookPlus
Bishal has over a decade of experience in digital marketing, web development, and small business consulting across Australia. Bishal has reviewed public liability, tools of trade and home warranty policies with Australian tradie operators to keep their Certificates of Currency contract-ready.
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