Tradie Insurance Guide Australia — Complete 2026 Coverage Guide

Insurance isn't optional — it's contract-mandatory. Most builders and developers require $20M public liability before you step on site. Here's exactly what you need, what it costs, and what happens if you don't have it.

1. Public Liability Insurance — Non-Negotiable

Covers you if your work causes injury or property damage. Every builder, developer, and strata manager will ask for your Certificate of Currency before you start.

• $10M cover: $60–$80/month (minimum recommended)
• $20M cover: $80–$120/month (required by most builders)
• Excess: Usually $500–$1,000
• Shopfitters & high-risk trades pay 15–25% more

2. Tool Insurance — Protect Your Livelihood

Covers theft, loss & accidental damage. Most tradies carry $5,000–$20,000+ in tools. A single break-in can wipe you out.

• $5,000 cover: $20–$30/month
• $10,000 cover: $30–$45/month
• $20,000 cover: $50–$70/month
• Check: is cover "new for old" or "market value"? New for old costs more but replaces your 5-year-old Makita with a brand new one

3. Income Protection

Pays up to 75% of your income if you can't work due to injury or illness. For tradies, this is the most important insurance after PL — because your body IS your business.

• Waiting period: 14, 30, or 90 days (longer wait = cheaper premiums)
• Benefit period: 2 years, 5 years, or to age 65
• Monthly cost: $50–$150 depending on age, trade, and benefit level
• Tax deductible: Yes — premiums are fully deductible

4. Workers Compensation — Mandatory for Employees

Required by law in every state if you have employees. Covers their medical costs and lost wages if injured at work. You can't opt out.

5. Professional Indemnity

Covers you for advice, design work, or professional negligence. Less common for hands-on tradies but important if you do consulting.