How much is Tradies insurance, and how is it decided?

Key takeaways

• There’s no fixed price for trade insurance—it depends on your work, business size and the cover you choose.
• Public liability insurance is the most common policy, and many jobs require at least $5–$20 million in coverage.
• Insurers consider factors like your trade, turnover, business premises, claims history, and how your policy is set up.
• Premiums can rise over time due to business growth, inflation and changes in the market.
• Using a broker who understands tradies can help you find the right cover and avoid paying for what you don’t need.

The real insurance cost question

It’s the first thing most tradies ask: “Yeah, but how much will insurance cover cost me?” Fair enough. No one wants to fork out more than they need to for insurance.

The answer? It can range from just a few dollars a day to several thousand a year. The total cost depends on the type of work you do, the size of your business and how much cover you need.

In this guide, we’ll explain how an insurance company calculates your premium, what factors can push the price up or down, and how to keep your trades insurance costs manageable as your business grows.

Why one straight dollar figure doesn’t exist

There’s no one-size-fits-all price when it comes to business insurance for tradies—and that’s a good thing. Your policy is there to back you and the work you do, not some generic template.

A solo handyman doing small jobs around town doesn’t face the same risks as a builder running a crew across multiple sites. Bigger jobs, more people, higher risk—means higher cover.

That’s why the cost can vary so much. What really matters are the things that shape your premium: the type of work you do, your business size, claims history, and a few other big-ticket factors. Let’s break them down.

Core cover types & typical price ranges*

What you’ll pay depends on how much cover you need, what gear you’re using and the type of work you’re doing. But to give you a ballpark, here’s a look at the most common types of cover and what they usually cost:

• Public Liability cover: The big one. Most tradies ask about this first. You’re looking at anywhere from $500 to $2,000 a year for $5 million to $20 million in coverage.
• Portable Tools: Depends on what you’re carrying. Expect $150 to $800 a year, based on the total value.
• Commercial Motor: Got a work ute or trailer? This can be added to your auto policy. Add around $200 to $1,500 a year.
• Personal Accident & Illness: Covers your income if you’re out of action. Usually $400 to $1,200 a year, depending on age and cover length.
• Plant & Machinery: For heavy-duty gear, the cover can reach $5,000+ a year.
• Cyber Cover: More common these days, with basic protection starting from around $300 a year.

These are ballpark figures to give you a starting point, but every business differs. The right cover (and the right price) comes down to your setup, your risks and how you operate day to day.

Have a chat with an insurance broker at Tradesure. We’ll walk you through the options and help you find cover that makes sense for the way you work.

The seven main pricing factors every tradie should know

So, what actually affects how much you pay? Here are the main things insurers look at when working out your premium:

1. Trade & risk profile

Some trades carry more risk than others. Roofers, sparkies and demolition crews tend to pay more than painters or handymen.

2. Turnover & payroll

The more revenue you bring in—or the more people you’ve got on the books—the higher the exposure. Insurers use this to gauge the size of your business.

3. Location & jurisdiction

Where you work matters. Jobs in cyclone zones (like parts of QLD) or areas with high theft rates (like some Sydney suburbs) can drive up premiums.

4. Claims history

A clean track record works in your favour. If you’ve had a few claims in recent years, expect higher premiums or extra conditions.

5. Sum insured / limit chosen

The more coverage you ask for, the more it costs. Councils and builders often want you to carry $20 million in public liability—that can bump up your price.

6. Safety & risk management

Insurers like to see that you’ve got your house in order. SWMS, proper site inductions and even GPS trackers on tools can help keep your costs down.

7. Policy structure & excess

Choosing a higher excess can lower your premium. Bundling your covers together—like with a Tradesure package—can also help you save.

Beyond year 1: What drives long-term premium increases?

Even if your cover starts off cheap, it can creep up over time, and not always because you’ve stuffed anything up. Sometimes it’s just the way things go. Insurers cop higher costs from storms, materials get pricier, labour goes up, and suddenly your tools are worth more to replace than they were last year.

If your business has grown a bit—more jobs, more gear, maybe an apprentice or two—that can push things up too. And if you’ve had a big claim, that’ll hang around for a while and might cost you more down the track.

Then there’s the stuff you can’t control. Councils or commercial jobs might want higher cover, which means bumping up your policy to match.

Quick tip: Chuck insurance on your EOFY to-do list. A yearly check-in can help keep your cover spot-on without paying more than you need to.

5 practical ways to keep your premiums sharp

Premiums don’t have to keep creeping up. Here’s how to keep yours in check:

• Bundle your cover: Holding a comprehensive business insurance pack with the same broker can unlock multi-policy discounts.
• Review your limits: No point paying to cover tools you don’t even own anymore. Give your gear list a clean-up now and then.
• Use theft-prevention tech: Lockboxes, GPS trackers, dashcams—stuff like this shows you’re serious about keeping your gear safe, and insurers love that.
• Keep your safety paperwork clean: Well-documented policies, compliance, and safety induction documents help prove you’re low-risk.
• Shop smart at renewal: It’s worth comparing prices, but don’t just go for the cheapest. A good broker who understands tradies can save you more in the long run.

The right insurance for tradies starts with Tradesure

Running a trade business means backing yourself, and that includes having the right business insurance policy. We’ll help you understand your options, keep it simple, and ensure you’re only paying for what you need.