How much does Public Liability insurance cost for tradespeople?
Public Liability insurance can be a valuable asset in your insurance toolkit. It can help protect you financially if you hurt another person or damage their property on the job by saving you from forking out loads of money in legal costs and compensation.
If something does go wrong on the job, Public Liability insurance may be your best defence. But how much does it cost?
Cost all comes down to a number of key factors, including:
- The type and nature of your business, for example, gas fitters usually pay more than other types of trades.
- Business turnover and size.
- The amount of insurance cover required.
- The location of your business.
- What is included and excluded from the policy.
- The insurance provider you end up choosing.
We’ve conducted some research into the cost of Public Liability insurance for tradies by analysing data from BizCover policies sold during the 2021/22 financial year. Our sample includes more than 18,000 policy holders in NSW, which have 10 or fewer employees.
These occupations include:
- Carpenter/Carpentry Services
- Electrician/Electrical Services
- Plumber/Plumbing Services
- Builder – House Construction Alteration or Renovation
- Lawn Mowing Service
While we have provided information below on what your Public Liability could cost you as a tradesperson, the most accurate way to find out the cost for your business is to simply get an instant online quote.
What is the average premium for Public Liability insurance?
On average, tradies can expect to pay around $60 per month for Public Liability insurance.
Does the number of people I employ affect the premium?
After looking at the nature of your trade, one important factor that insurers use to determine the cost of your Public Liability insurance is the number of employees your business has. The more employees you have, the riskier your insurer perceives you to be, hence you’ll likely pay a higher premium.
Looking at our data, around 70% of tradesmen insured through BizCover are sole traders and are paying around $50 per month for their PL premium. However, if you have 4 employees, the premium increases to around $119 per month.
*Data based on NSW BizCover customers.
How does revenue affect the premium?
Another way insurers price the cost of Public Liability insurance is by looking at the amount of revenue you turnover. This is another indication that you operate a larger scale business, either working on a higher number of jobs, or jobs of higher value. And the more work you do, the more likelihood of an incident occurring.
Does the level of cover affect the premium?
It’s fair to say that the more of something you buy, the more it will generally cost. However, increasing the cost of your Public Liability insurance won’t increase the premium by too much.
The most popular level of Public Liability cover taken out by BizCover tradesmen customers is $10 million, with an average monthly premium of $55. Yet, if you double your cover to $20 million the premium only rises to around $84 per month on average.
Average monthly cost of Public Liability Insurance by level of cover
| Coverage level | Average monthly premium |
| $5 Million | $44 |
| $10 Million | $55 |
| $20 Million | $84 |
*Data based on NSW BizCover customers
Deciding what level of cover to take out can be influenced by a number of things like:
- The type of risks your business is exposed to
- Any work contracts you take on.
- Industry-based requirements. E.g., most states make it mandatory for those with an electrical contractor’s licence to hold a minimum amount of Public Liability insurance.
