Does making a claim really push your premium up? What every tradie should know.

Introduction

If you run a trade business in Australia, insurance isn't optional, it's part of how you protect your livelihood, your tools, and your reputation. But here's something a lot of tradies don't think about until renewal time: making a claim can change what you pay.

Understanding how a claim affects your premium isn't about scaring you away from using your cover. It's about making smart, informed decisions that keep your costs manageable over the long term.

In this article, we'll break down how insurers calculate premiums, what actually happens when you lodge a claim, and — most importantly — how to minimise premium increases so you're not hit with a nasty surprise at renewal.

At Tradesure, we're tradie insurance specialists. We know the industry inside out, and we're here to help you navigate insurance without the jargon.

Before we talk about claims, it helps to understand how your insurance premium is calculated in the first place. Insurers don't just pick a number, they use a process called underwriting, which is essentially a risk assessment of you, your trade, and your business operations.

Key factors that go into your premium include:

• Your occupation and the nature of the work (a solo handyman carries different risk to a builder managing a crew of subcontractors)
• The value of your tools, equipment, and any vehicles used for work
• Your claims history — both frequency and the type of claims you've made
• Where you work — metro areas versus regional centres can affect risk profiles
• The level of cover you choose, including optional extras or higher excess settings.

To put it plainly: a carpenter who has never made a claim and works on small residential jobs will generally pay less than a commercial builder with multiple claims in the previous year. Your risk profile is essentially your track record — and insurers price accordingly.

What happens when you make an insurance claim

So you've had an incident on-site, your tools have been stolen, or there's been a third-party property damage issue. Here's what the insurance claims process typically looks like >

That last point matters more than most people realise. Every claim you make — whether it's a tools claim after a theft, a minor accident involving a work vehicle, or a public liability incident — is logged. Insurers reference this history when you renew or switch providers.

One important distinction: there's a meaningful difference between at-fault claims (where you or your business caused the loss) and not-at-fault claims (where the fault lies with another party or circumstances outside your control). More on that shortly.

At Tradesure, we make the claims process as straightforward as possible. Giving you real support when you actually need it, not just when you're signing up.

How Claims Affect Your Premium

This is what most tradies are curious about — and for good reason. When you make a claim, it signals to your insurer that you're a higher risk than someone who hasn't. Even one claim can nudge your premium upward at renewal, though the extent varies significantly depending on several factors >

• Type of claim - A single tools theft claim is treated differently from a public liability incident involving injury or significant third-party property damage.
• Claim size - Claims costs matter. A small payout for minor repairs is less likely to significantly increase premiums than a large settlement.
• Frequency - One claim in five years is very different from three claims in 12 months. Multiple claims in a short period is a major red flag for insurers.
• Fault - At-fault claims generally carry more weight in premium calculations than not-at-fault claims. Consider this example: a subcontractor makes one tools claim over a three-year period. At renewal, their premium might increase modestly — or not at all, depending on their insurer's approach. Now compare that to a small construction business with three claims over two years — one for damage to a company vehicle, one for a faulty workmanship dispute and one for public liability. Their premium will likely increase considerably, and some insurers may even decline to renew.

What about not-at-fault claims?

You might be thinking: "If it wasn't my fault, surely my premium won't go up?" It's a fair assumption — but unfortunately that's not always how it works in Australia.

Not-at-fault claims can lead to premium increases in some circumstances. Why? Because insurers look at your overall claims history as a risk indicator, not just whether you were the at-fault driver or party. If you've had multiple not-at-fault incidents, it can still signal to an insurer that your circumstances lead to more claims costs than average — even if none of them were your doing.

Industry costs also play a role. When claims costs rise across the market — due to increased repair costs, labour shortages, or broader economic factors — policyholders in affected categories may see higher premiums across the board, regardless of individual fault.

If you believe a premium increase is unfair or unjustified, you have options. Try to resolve the issue with the insurer first. If you are not happy with their response, the Australian Financial Complaints Authority (AFCA) provides a free dispute resolution service for consumers. At Tradesure, we'll advocate on your behalf and help you understand your options - you're not alone in navigating these outcomes.

Tips to minimise the impact of claims on your premium

The good news is that there are real, practical steps you can take to protect your risk profile and keep premium increases to a minimum. Here's what we recommend:

• Invest in site security - Alarms, secure lockboxes for tools, and tracking devices on vehicles and equipment all signal lower risk to insurers — and they can reduce the likelihood of a claim in the first place.
• Keep thorough records - Document your tools, equipment values, and any incidents — even minor ones — as they happen. Good record-keeping speeds up the claims process and reduces disputes.
• Think before you claim - This one's important: not every incident is worth claiming. If the loss is minor and close to your excess amount, paying out of pocket may be cheaper than the potential premium increase over the next few years. Weigh up whether it's worth claiming before you lodge.
• Install a dashcam - Dashcam footage can be invaluable in demonstrating fault (or lack thereof) in vehicle-related incidents — helping protect your claims history.
• Review your policy terms annually - Make sure your cover reflects your current situation. Being over-insured or under-insured both cost you money in different ways.
• Talk to Tradesure before you claim - Seriously, give us a call first. We can help you work through whether a claim is the right move, or whether there's a smarter way to handle it. One of our clients — a Brisbane electrician — had a minor tool theft and called us before lodging a claim. After running through the numbers together, he decided to cover the loss himself rather than risk a premium increase. Two years later, his premium has stayed flat. That conversation saved him money.

What to do if your premium goes up

If you open your renewal notice and see a higher premium, don't just accept it without question. Here's a practical checklist >

Key takeaways & next steps

Claims do affect your premium, but the impact isn't inevitable or unmanageable. Understanding how a claim affects your premium means you can make smarter decisions: when to claim, when not to, and how to protect your risk profile over time.

At Tradesure, our commitment is simple. We're here to help you get the best cover, the best value, with no surprises. Whether you're due for a renewal review, weighing up a potential claim, or just want a second opinion on your current policy, get in touch with our team today.