What Does Tradesman Insurance Cover?

You're a tradesman. You know how to use tools and fix things, but do you know what it takes to keep yourself protected on the job? If not, read on to learn how tradesman insurance can protect your business and personal assets from unexpected losses or damages that may occur while you are working.

Public liability

Public liability insurance can cover claims from other people if your work injures them or damages their property, up to the limit in the policy. Read what public liability insurance covers.

Common limits are $5 million, $10 million and $20 million. If a head contractor or council has asked for a limit, choose at least that. See how much public liability insurance do I need and public liability insurance for tradies.

Contract works

Contract works insurance, often called contractors all risk, can cover loss of or damage to the works you're building and the materials on site, usually until handover, up to the policy limits. Some contractors all risk policies also include a public liability section. Head contractors and clients often ask for it in the contract. Read what contract works insurance covers, or see contract works insurance.

Ute and van insurance

If you use a ute or van for work, a commercial motor policy can cover damage to your own vehicle, damage to other people's vehicles and property, and theft, depending on the policy. Injury to other people in a crash is a matter for the compulsory third party (CTP) insurance linked to your vehicle's registration. In WA that's motor injury insurance, which covers injury and death caused to others by the driver, but not damage to vehicles or property (Department of Transport and Major Infrastructure). Tools in the vehicle usually need their own cover. Read more about commercial vehicle insurance.

Tools and equipment insurance

Tool insurance can pay to repair or replace tools that are stolen or damaged, up to the limits in your policy. Breakdown and wear and tear are usually left out unless the policy includes them. Read more about tool insurance.

Evaluate your tools and equipment regularly. When purchasing tools and equipment insurance for tradesmen and construction workers, it's important to understand how much coverage is needed based on your specific business needs.

Workers compensation

Under Australian law, employers must have insurance to cover their workers if they get sick or injured because of work (Safe Work Australia). Depending on your state's scheme, it can pay for lost wages, medical costs and rehabilitation. Read more about workers compensation insurance.

Personal accident and illness insurance

Personal accident and illness cover can pay a weekly benefit if an injury or illness stops you working. How much, and for how long, depends on the policy. Read more about personal accident insurance for tradies.

What a policy covers depends on its wording, limits, excesses and exclusions, and the insurer decides whether a claim is paid, so read the PDS (product disclosure statement) or policy wording before you decide.

Contact us for more information on policies that can cover you and your business

Want to talk through cover for your trade? Get in touch. Tell us about your work and we'll get you quotes for the cover you ask for. Starting out on your own? Read about tradies insurance.