Insurance for Tradies

Some types of insurance may be compulsory for tradies to become licensed, work, or meet the terms of a contract.

For example, Public Liability insurance is usually required for tradespeople, sole traders, and subcontractors to enter worksites. A policy may also be required to lease commercial space for your business (such as an office, workshop, or warehouse). Public Liability insurance is also required to receive and maintain an electrical contractor license in most states and territories. Plumbers in Tasmania and Victoria must have a Public Liability policy to become licensed.

Professional Indemnity insurance is required for certain types of building practitioners in Northern Territory, Queensland, Victoria, and Western Australia. Starting in July 2026, it will also be mandatory for registered building practitioners in New South Wales. Always check the laws and regulations in your state or territory to understand your insurance obligations.

Personal Accident & Illness is not mandatory for tradies, but it can provide important protections for you and your business.

Sole traders and subcontractors are typically not covered by workers’ comp schemes. If you are injured or fall seriously ill, you may miss out on weeks or months of income while you recover. A Personal Accident & Illness policy may provide a weekly income benefit or lump sum payment to cover lost income, permanent disability, or accidental death (subject to policy wording and limits).

Sole trader and self-employed tradies may need Public Liability insurance to receive a trades license, work as a contractor or subcontractor, or enter job sites.

Even if a Public Liability policy is not required for your work, it can still help protect your business. Public Liability insurance could help you manage the cost of third-party injury and property damage claims. These are some of the most common claims that small businesses face and can be expensive to pay out of pocket.

Every tradie business is unique. BizCover offers Public Liability cover levels of $5 million, $10 million, $15 million, and $20 million (cover amounts may vary by occupation).

When choosing your cover amounts, you may want to consider:

• The size of the jobs that you are working on – The higher the value, the higher risk. You may want to increase your Public Liability insurance accordingly.
• Your business contracts – Is there a minimum amount of cover stipulated in your contract? Meeting contractual obligations is essential.

Some tradespeople may be required to have Professional Indemnity insurance to work in some states and territories. For example, plumbers in Victoria must have minimum levels of Professional Indemnity cover to become licensed. Professional Indemnity insurance is also a common requirement for different types of building practitioners.

Always check with your state or territory licensing body to understand the insurance requirements for your trade and location.

BizCover can help tradespeople cover different work activities. We make it easy for a ‘jack of all trades’ to protect themselves from common business risks.