Why This Matters
Being a tradie is rewarding, but the job comes with plenty of risks. You’re on the tools, on the move, and often working in unpredictable spaces. Amid tight deadlines and demanding job sites, there’s one critical thing many tradies overlook — what happens if something goes wrong?
If someone gets injured or if property is damaged due to your work, the financial consequences can be devastating. That’s where public liability insurance becomes essential. Unfortunately, too many tradies are still operating without the protection they need.
Let’s break down the real cost of going uninsured and how the right insurance cover can safeguard your livelihood.
What Is Public Liability Insurance for Tradies?
Public liability insurance for tradies protects your business if your work causes injury or property damage to a third party — such as a client, a passer-by, or even a subcontractor. If a claim is made, this type of liability policy helps cover:
- Legal defence costs
- Compensation payouts for injury or damage
- Settlement negotiation and investigation fees
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Whether you’re a plumber, electrician, carpenter, landscaper, or other tradesperson, having the right liability insurance helps protect your business and reputation when the unexpected happens.
When Things Go Wrong: Real Claim Scenarios
Even the most careful tradies can experience accidents on-site. For example:
- A client trips over your power cord and breaks their arm.
- Your apprentice accidentally spills paint on expensive furniture.
- You drill through a pipe and flood a customer’s kitchen.
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Without insurance, you’re not just fixing the problem. You’re also paying for it, often in the tens of thousands.
The Financial Fallout of Being Uninsured
Legal Costs Add Up Quickly
Legal fees for defending a claim can range between $300 and $600 per hour. A full legal defence could cost upwards of $20,000, even before any settlement is discussed.
Compensation Payouts Are Significant
Claims for property damage or injury may lead to compensation bills like:
- $15,000 to repair water-damaged flooring
- $80,000 for a bodily injury claim
Over $100,000 if ongoing care is needed
You Could Lose Jobs
Not having liability insurance may prevent you from working on commercial or government sites. Many contracts require a valid certificate of currency for insurance before work begins. If you can’t provide one, you’re out of the job.
Is Liability Insurance Mandatory for Tradies?
In many cases, yes. Even when it’s not legally required, it’s often expected by clients and site managers.
Here are two state-specific examples:
- Victorian plumbers must hold a Consumer Protection insurance endorsement to maintain their licence.
🔗 Victorian Building Authority – Plumbing Insurance Requirements - Queensland electricians must maintain public and products liability insurance of at least $5 million and $50,000 in consumer protection cover to obtain or renew their licence.
🔗 Electrical Safety Office QLD – Insurance Requirements
Contractual obligations and site access rules often require tradies to carry insurance. Failing to have cover could mean losing contracts, breaching agreements, or being unable to legally perform licensed work.
How Much Does It Cost?
Public liability insurance is more affordable than most tradies expect — and far cheaper than dealing with an uncovered claim. The total premium depends on several key factors.
Your trade type plays a major role. Higher-risk trades such as roofing tend to have higher premiums compared to less risky roles like painting or tiling.
Your business turnover also affects the cost. More income generally means more jobs and therefore higher exposure to risk.
If you employ staff, your number of employees can increase your premium, as the potential for incidents rises with every additional person on-site.
Your claims history is also considered. A clean record may reduce your premium, while past claims could increase it.
Finally, the amount of cover selected will influence the cost. While $5 million is often the minimum amount of public liability insurance required, some sites and contracts demand higher limits.
On average, Australian tradies pay between $400 and $1,500 per year. To determine the right fit for you, speak with an experienced insurance broker from Atlantic Insurance who can match your needs with your budget.
What Happens If You Need to Make a Claim?
When something goes wrong, an experienced Insurance Broker like the experienced Client Managers at Atlantic and your insurer work together to manage the process efficiently. Here’s what happens:
- You notify your broker about the incident or demand.
- The broker helps gather documentation and notifies the insurer.
- The insurer investigates the claim and determines liability.
- If approved, they handle the legal fees and payout (minus your excess).
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At Atlantic Insurance, a dedicated Client Manager supports you from the first call to final settlement. That way, you can stay focused on your work while we handle the paperwork.
Can You Bundle Liability with Other Insurance?
Yes — and it’s often the smartest move. Many tradies choose to bundle their policies which can save money and simplify management.
A tailored package might include:
- Public liability cover
- Tool insurance for stolen or damaged equipment
- Income protection insurance
- Vehicle insurance for your ute or van
- Works insurance for ongoing construction projects
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You can also tailor your protection to include specific extensions such as:
- Tools of trade and specialist equipment kept on-site
- Goods in care, custody or control, covering client property
If your work includes offering advice, design, or planning services, adding professional indemnity insurance may also be necessary. This is especially relevant for electricians, cabinet makers, and HVAC specialists who provide customised installations or layouts.
A complete insurance solution ensures you’re not underinsured or paying for unnecessary extras — only what your business truly needs.
Why Tradies Trust Atlantic Insurance
With over 40 years of experience in trade-specific risk management, Atlantic Insurance helps tradies secure comprehensive and cost-effective insurance options.
Here’s why tradies across Australia trust us:
- We tailor cover to your business activities and insurance needs
- We help ensure your compliance with licensing and contract requirements
- We offer access to multiple general insurance products from leading providers
- We guide you through forms of insurance that protect your tools, vehicles and income
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👉 Speak with a Client Manager today
👉 Get covered with a free quote
Final Word: Don’t Leave It to Chance
You lock up your tools every night. So why leave your business unprotected?
Whether you’re working solo or running a growing team, the right public liability insurance for tradies protects more than your balance sheet — it protects your future.
Let’s make sure you’re covered before the unexpected happens.
Any information contained on this page of the website is general advice only and has been prepared without taking into account your objectives, financial situation or needs. You should consider these, having regard to the appropriateness of this advice and the relevant Product Disclosure Statement (‘PDS’), Target Market Determination (‘TMD’) and Financial Services Guide (‘FSG’), which will be provided following any formal recommendation to you.