Running a trade business in Australia comes with a range of risks. Whether you’re a carpenter, electrician, plumber or concreter, Trades Insurance (sometimes called Tradies Insurance) can help protect you when things go wrong. But what does a typical package include?
Public Liability Insurance
Most Trades Insurance packages typically include Public Liability Insurance. This may cover you if your work causes injury to a third party or damage to their property, depending on the policy terms. For example, if a client trips over your tools or a wall is damaged during work, this cover could help with associated costs.
Tools and Equipment Cover
Tools are essential for any tradie. Tool Insurance may cover theft, loss, or accidental damage to your equipment, whether on site, in your vehicle, or at a workshop. Policy limits and conditions usually apply.
Vehicle and Trailer Insurance
Many tradies use utes, vans, or trailers to transport gear and materials. A Trades Insurance package may include cover for commercial vehicles and trailers, subject to the insurer’s terms and conditions.
Personal Accident and Illness Cover
Some policies may provide Personal Accident and Illness cover, which could offer income replacement if you’re unable to work due to injury or illness.
Other Covers
Depending on your trade, policies might also include Contract Works Insurance or Professional Indemnity Insurance.
Why it matters: Every trade has different risks, and no two policies are the same. Speaking with a broker can help ensure your Trades Insurance policy aligns with your circumstances and provides the level of cover you need.
FAQ's
• Do I need Public Liability Insurance as a sole trader?
While it isn’t legally required for all tradies, Public Liability Insurance may provide important protection if your work causes injury or property damage. Many contracts or licensing bodies require it.
• Is Tools Insurance worth it for tradies?
Tools are often at risk of theft or accidental damage. Tool Insurance could help reduce financial stress if something happens, depending on the policy limits and conditions.
• Can I bundle different types of Trades Insurance?
Yes. Many insurers offer packages that can include Public Liability, Tools, Vehicle Cover, and Personal Accident. Bundling may provide convenience, but terms and pricing vary by insurer.
• Does Trades Insurance cover subcontractors?
Not always. Some policies exclude subcontractors unless specifically declared. It’s important to check policy wording and discuss with your broker if you use subcontractors.
• Is Trades Insurance compulsory in Australia?
Some covers, such as Workers' Compensation, are mandatory if you employ staff. Other covers, like Public Liability, are not legally required in every case but are strongly recommended and often contractually required.
For further information, contact the team at CPC Insurance Services