What insurance does a tradie need?

Key takeaways

Every tradie needs public and product liability insurance. It protects you if your work causes injury or property damage, and is often required for licences and permits.
Your tools are your income. Tool and portable equipment insurance covers theft, damage or loss on site, in the van or at home.
Commercial motor, trailer and plant insurance keeps your work vehicles and heavy gear protected. You can even cover hire costs if something breaks down.
If you’re a sole trader, workers’ comp may not cover you. Personal accident and income protection keep the bills paid if you can’t work due to injury or illness.
Extras like Contract Works, Cyber Liability, Tax Audit and Professional Indemnity fill the gaps. They’re especially useful as your job or business grows.

“Every job’s a risk when you're on the tools. One wrong move, one missing policy—suddenly, it’s your livelihood on the line. This guide breaks it down so you can focus on the work, knowing you’re properly covered.”

Why getting covered is a smart business move

Getting hurt on a job site doesn’t just ruin your week; it can cost you big time. The average on-site injury sets tradies back over $9,000, and that’s before you count time off work. Having the right insurance isn’t just about ticking a box, it’s about protecting your income so you can keep cash flowing, pay your crew, upgrade your gear and even give back to the causes you care about.

In this guide, we break it all down in plain English, what you absolutely need, what’s nice to have, and how to cover your bases without going overboard. No jargon, no pressure—just solid info to help you run your business with confidence.

Core Cover #1 – Product and Public Liability Insurance

Public & Product Liability is the one policy every tradie should have. It covers you if your work causes injury to someone else, damages their property or if a completed job leads to a claim down the track.

Think: Someone trips over your tools, a client’s fence gets knocked down during a job, or a kitchen you fit starts leaking a month later.

It’s not just a safety net; it’s often a legal requirement. Most builders’ licences, council permits, and commercial contracts will ask for proof of cover before you even start.

How much public liability cover do you need?

$5 million might be enough for smaller domestic jobs.
$10 million is standard for most subcontractors and sole traders.
$20 million is usually required if you’re working in government spaces, hospitals or large commercial sites.

If you’re unsure, it’s always safer to go higher. Liability claims can be expensive, and this cover protects you from footing the bill if something goes wrong.

Core Cover #2 – Tools & Portable Equipment Insurance

Your tools aren’t just tools – they’re how you make a living. The average plumber’s kit is worth around $8,000, and that’s just what’s in the ute. Tool theft is the most common claim we see, and accidental damage or loss isn’t far behind.

This type of insurance coverage looks after your gear wherever you are – on site, in the van or at home. It’s valid across Australia and can even include things like lasers or laptops if you use them for work.

To make claiming your tool insurance easier if something goes wrong, it’s a good idea to engrave your tools, take a few photos, and hang them on your receipts. Even keeping a simple list of what you own can go a long way. A little effort now can save you a big headache down the track.

Core Cover #3 – Vehicles, Trailers & Plant/Machinery Insurance

From the ute you drive to the trailer you tow and the gear you haul—keeping it all covered makes sense.

Commercial motor insurance covers your work vehicles, including accidents, theft, and damage. You can choose between market value or agreed value, and even add cover for hire costs if your vehicle’s off the road.
Trailer insurance protects enclosed, tipper or flatbed trailers against theft and damage, whether they’re hooked up or parked at the depot.
Mobile plant and machinery cover is for gear such as excavators, bobcats or scissor lifts. If you’re a larger builder, you might also need cover for hired-in plant or dry hire liability, especially when working on big commercial construction sites.

Whether you own it, lease it or hire it, the right cover helps keep your business running—even if something breaks down along the way.

Core Cover #4 – Personal Accident & Income Protection

If you’re a sole trader or subbie, workers’ compensation often doesn’t cover you. It depends on where you live—some states, like QLD, run it through the government under WorkCover Queensland, but unless you’re classed as a worker, you’re likely not eligible.

That’s where personal injury and income protection insurance come in. It can pay you a weekly benefit if you’re injured or sick and can’t work, or offer a lump sum payout for serious injuries.

Think about everything your income goes towards: mortgage repayments, medical expenses, school fees, groceries and more. This kind of cover helps you keep the lights on and protect the future you’re building, even if you’re off the tools for a while.

It’s not about worst-case scenarios. It’s about backing yourself, your business and your family—no matter what happens.

Optional but wise add-ons: Cover the gaps before they cost you

Some policies aren’t mandatory, but they’re worth a serious look, especially if your job is growing or your work is getting more complex. Other recommended business insurance policies for tradies include:

Contract Works Insurance: Ideal for builders on jobs over $ 50,000. Covers material damage during the build and includes public liability.
Cyber Liability: Protects against cyber attacks like ransomware, phishing and data breaches. Handy if you store quotes, invoices or client details online.
Tax Audit & Legal Expenses: Helps cover accountant or legal costs if you’re audited or face a dispute with the ATO, licensing bodies or clients.

Professional Indemnity: This covers claims if you’re responsible for design, plans, or advice that causes a client financial loss or issue during the build.

How to get covered in minutes with Tradesure

Sorting out tradies’ insurance doesn’t have to be complicated. At Tradesure, you’ll chat with a real insurance broker who actually understands what you do and why it matters.

We’ll walk you through your options, answer your questions without the jargon and help you choose cover that makes sense for your work. You can even set up monthly payments to keep things easy on the cash flow. No drama, just expert advice from people who get it.

Ready to protect your income, tools and future growth?

Having the right coverage means you can keep working, earning, and planning ahead with confidence. It’s about making sure the things you rely on every day, like your gear, vehicle and finances, are protected if something goes wrong.

Need a hand? Give our team a call at our Brisbane or Sunshine Coast offices, or send an enquiry online. We’re here to help with friendly advice and cover that fits the way you work.

If this guide helped clear things up, share it with your mates. It’s a simple way to help the whole crew stay safe, keep the cash flowing and back each other for the long haul.