What insurance do tradies need in Australia?

Many tradies start with public and products liability insurance, because builders, clients and site managers may ask to see it before work starts. Other cover depends on your tools, your ute, whether you employ workers and how you would manage if you couldn't work.

Public liability insurance is designed to cover claims that someone was injured or their property was damaged in connection with your business. Products liability insurance is designed to cover claims that a product you made, sold or supplied caused injury or damage after it left your hands.

The two are usually arranged together as public and products liability insurance. Public and products liability cover may include legal defence costs, compensation and any settlement you are legally liable to pay, subject to the policy terms.

Cover depends on the policy and insurer you choose. Check the policy wording and its terms and conditions for what is and isn't included.

What insurance do tradies need for each risk?

Each cover is subject to the policy terms, conditions and exclusions.

Is insurance compulsory for tradies in Australia?

Tradesperson can be required to hold insurance by law, by a trade licence or by the people they work for.

What insurance is required by law?

• Workers' compensation, if you employ workers. Safe Work Australia says "Under Australian law, employers must have insurance to cover their workers in case they get sick or injured because of work" (Safe Work Australia). Each state and territory runs its own scheme, and the laws vary between them (business.gov.au).
• Third party personal injury insurance, if you use a vehicle. It is often part of the vehicle registration fee (business.gov.au). It is commonly called compulsory third party (CTP) insurance, and some states use another name, such as the TAC charge in Victoria (TAC).

When do tradies need public liability insurance?

For tradesperson, the requirement to hold public liability insurance usually comes from a licence, contract, site or council permit (business.gov.au). Some trade licences set a minimum:

Contracts, sites, permits and leases can also set a requirement:

• Contracts and sites. Builders, head contractors and clients may ask you to hold your own cover and show a certificate of currency before you start.
• Permits and leases. Councils and landlords can set their own insurance conditions.

We checked these examples in September 2026. Rules differ between states and trades, and your licensing body or the other party to your contract can confirm what applies to you. Our guides to public liability insurance in Queensland and Victoria explain those states' rules.

Does ute insurance cover the tools inside?

Commercial motor insurance is designed to cover a vehicle used for business. Tools of trade insurance is designed to cover the tools and equipment you use for work. Whether a motor policy includes any cover for tools varies between policy wordings, so always check with your insurance broker or the team at upcover.

A personal car policy may not respond if the vehicle is used regularly for business, deliveries or carrying tools.

For theft from a vehicle, upcover's tools of trade page says tradie tools insurance "may apply when tools are stolen after forcible entry into your securely locked vehicle, with visible damage showing entry and the item within your limits." This is known as the securely locked vehicle requirement. Our guide to tools of trade insurance for tradies explains more.

What do tradie insurance claims look like?

The claims examples below come from upcover's trades and construction page. The first three are claims made against the business. Tool Theft is a claim on the tradie's own tools of trade policy.

Important: These claims are examples only. Cover is subject to policy terms, conditions and exclusions. Policy wordings vary between insurers. Always refer to the policy wording and its terms and conditions for details. If you have questions about a particular possible claim or would like assistance about whether a certain claim might be covered it is always best to speak to an upcover team member or your insurance broker.

If you're concerned about a particular customer service or experience, you can always consider telling your insurer as soon as you become aware of an incident, complaint or circumstance that could lead to a claim. You don't need to wait for a formal demand. Also keep in mind that notifying of a claim late may affect your claim.

You can start a claim through the make a claim page. Admitting liability, incurring costs or agreeing to a settlement before you notify your insurer may affect your claim. Starting a claim does not confirm that your claim is covered; your insurer assesses it under the policy terms, conditions, exclusions and limits.

How does cover change if you work alone, subcontract or employ staff?

Working alone

If you work alone, there may be no one to keep jobs going while you recover from an injury or illness. Personal accident and sickness insurance is designed to help protect your income if injury or illness stops you working.

Benefits and waiting periods vary between policies. Our guide to personal accident and sickness insurance explains how it works.

Working as a subcontractor

A head contractor's policy is generally arranged for the head contractor's own business. Head contractors may ask you to hold your own public liability insurance and show a certificate of currency before you start. You may need to consider obtaining your own insurance even if you work on someone else's site.

If you pass work to your own subcontractors, whether your policy covers that work varies between policy wordings, so always check with your insurance broker or the team at upcover.

Employing staff

Employers must have workers' compensation insurance (see above). Who counts as a worker, and any exemptions, depend on your state or territory scheme. A worker with an ABN can still be your employee. The ATO says "Having an ABN makes no difference to whether a worker is an employee or independent contractor for a job" (ATO).

How much public liability cover do tradies need?

Any minimum comes from your licence, contract, site or permit. Some trade licences set $5 million, and a head contractor or client can ask for more.

Above any minimum, the limit you choose depends on your work, your sites and the people around you. An upcover team member or an insurance broker can talk through what those limits mean for a business like yours. Our guide to what level of public liability insurance you need explains the other factors.

What affects the cost of tradie insurance?

No single price applies to every tradie. Your price depends on the details you give the insurer, including:

• your trade and the work you do
• your turnover and number of staff
• your claims history
• the limit you choose (the most the insurer may pay, subject to the policy terms) and your excess (the amount you contribute to a claim)
• the value of the tools and machinery you insure

The amount you pay may also include GST, stamp duty and fees. Paying monthly may add instalment charges.

What do public liability and tools of trade policies commonly exclude?

Public liability exclusions commonly include, but are not limited to:

• liability arising from using a registered motor vehicle. Some policies include cover, with limits, for injury or damage while loading or unloading goods from a registered vehicle. Injury to other people caused by the vehicle sits with compulsory third party (CTP) insurance. Damage to other people's property may sit with commercial motor insurance, depending on the cover arranged
• dishonest, fraudulent or wilful acts by you. Dishonesty by an employee may sit under the crime or fidelity section of a management liability policy, designed to cover losses from employee dishonesty, where you arrange one
• the cost to redo, correct or improve your own work or fix defects, although the policy may respond to resulting damage to someone else's property
• claims from professional advice or services for a fee, which generally sit with professional indemnity insurance
• liability you take on only because of a contract (contractual liability exclusion)

Tools of trade exclusions commonly include, but are not limited to:

• wear and tear, or breakdown
• damage from a power surge
• theft from the open air or without forced entry, such as from an open job site (theft in open air exclusion)

Important: These lists are not exhaustive. Exclusions vary between insurers. Always refer to the policy wording and its terms and conditions for the exclusions that apply to you, and if you have questions you should speak to your insurance broker or the upcover team.

Whether a policy covers a client's property in your care, custody or control varies between policy wordings, so always check with your insurance broker or the team at upcover.

What do builders and clients check before you start?

Builders and clients may ask for a certificate of currency. It confirms a policy is in force and shows the insured name, the policy dates and the limit. Some contracts also ask for a notation, such as the head contractor noted as an interested party.

A policy is designed to respond to the activities described on your policy schedule. If a customer makes a claim about an activity your schedule leaves out, the insurer may consider declining it if they were not aware of the activity and would not have accepted it as covered under the insurance policy.

How upcover can help

upcover arranges insurance for tradies, including public and products liability, personal accident and sickness, tools of trade and commercial motor insurance. upcover works with 80+ insurance partners and can arrange quotes from a range of insurers.

• 70,000+ businesses covered across Australia
• 4.9/5 customer rating
• 80+ insurance partners

See insurance for trades and construction, or get a public liability quote.

Frequently asked questions

Do tradies with an ABN need insurance?

Having an ABN on its own doesn't set an insurance requirement. Requirements usually come from your licence, contracts, sites, permits, vehicles and any workers you employ.

Do tradies need professional indemnity insurance?

Professional indemnity insurance is designed to cover claims that your professional advice or services caused a client financial loss. It can be relevant to tradesperson who design, specify or give paid advice as well as doing the work. Public liability policies commonly exclude claims from professional advice or services for a fee. How each policy treats a design or advice claim varies between policy wordings, so always check with your insurance broker or the team at upcover.

Do small jobs need insurance too?

A customer can make a claim about a small job just as they can about a large one. Your insurer assesses any claim under the policy terms, conditions, exclusions and limits.

Does public liability insurance cover faulty work?

Fixing or redoing your own work is commonly excluded. If the faulty work damages someone else's property, the policy may respond to that damage, subject to the policy terms.

Does public liability insurance cover my own injuries?

Public liability insurance is designed for claims from other people. Personal accident and sickness insurance is designed to help protect your income if your own injury or illness stops you working. Injury to your workers typically sits with workers' compensation.

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_{Written by upcover's editorial team.}

_{This article provides general information only and does not take into account your objectives, financial situation or needs. It is not legal or tax advice. Licence conditions and contract requirements are set by regulators and the other party to the contract, and can change, so confirm what applies with the relevant body. Insurance availability and cover are subject to underwriting and the terms, conditions, limits and exclusions of the relevant policy. Read the policy wording and its terms and conditions before deciding. For commercial motor vehicle insurance, also read the Product Disclosure Statement (PDS), Target Market Determination (TMD) and Financial Services Guide (FSG). upcover arranges insurance products with selected insurers and underwriters and does not compare all general insurers or insurance products available in the market.}