Key Takeaways:
- Public liability insurance protects your business from costly accidents and legal claims.
- Many worksites and clients require you to have cover just to get in the door.
- Being insured makes you look more professional and helps win better jobs.
- Your subcontractors usually aren’t covered under your policy, which can leave you exposed.
- It’s affordable, easy to set up, and essential for keeping your business protected.
- All Trades Cover helps you get the right insurance without the runaround; tailored cover, fast quotes, and real tradie support.
If you’re just starting out in the trades or running your own small business, one of the first big questions is: do I really need public liability insurance, or can I go without it?
It might feel like just another expense on top of tools, fuel, and gear. But the truth is, public liability insurance can be the difference between keeping your business running and facing serious financial trouble after one unfortunate accident.
So, to get you up to speed, let’s take a closer look at what public liability insurance actually covers, when it’s legally required, and the key things to consider before deciding if it’s right for your trade.
What Is Public Liability Insurance?
Public liability insurance is the kind of cover you hope you never need, but you’ll be glad it’s there when things go sideways.
If your work accidentally causes injury to someone else or damages their property, this cover helps pay for the costs of fixing the mess. That can include repairs, medical bills and legal claims so you’re not left footing the whole bill yourself.
It’s a safety net for when the unexpected hits, and it keeps your business moving when the pressure’s on.
Here are some everyday examples:
- You crack a client’s window, carrying materials through the hallway.
- A passer-by trips over your gear left on the verge and ends up in the hospital.
- A sparkie accidentally drills through a water pipe hidden in the wall, flooding the client’s kitchen
- A painter spills a tin of paint that splatters across the client’s driveway and brickwork.
Do you legally need public liability insurance?
It depends on what you do, where you do it, and who you’re working for. There’s no blanket rule for every trade, but here’s where it’s usually required or expected:
- Licensing requirements: Some trades can’t get licensed without it. A lot of states ask for proof of public liability insurance before they’ll sign off your ticket.
- Worksite access: Big sites, councils and government jobs won’t let you step on-site without showing that you’re covered. No certificate? No entry.
- Contracts and quotes: Plenty of jobs won’t even let you quote unless you’ve got a current Certificate of Currency ready to go.
Even if it’s not legally required for your trade, public liability cover often becomes a must-have just to get steady work. This is especially true for sole traders who don’t have the backup of a bigger business to absorb the risk.
5 things to think about before you skip public liability cover
Even if it’s not legally required, public liability insurance is one of those things that can make or break your business when things go wrong. Here’s what to weigh up before you decide to go without it:
- Accidents happen — Even to good tradies
You can be the best on the tools and still have a job go sideways. A scaffold tips over. A pipe bursts and floods the kitchen. You crack a neighbour’s window moving gear around. One slip-up can cost you thousands — unless, of course, you’re covered.
- Clients expect it
Big builders. Councils. Commercial projects. They all expect you to be insured. Showing your Certificate of Currency ticks the box and proves you’re a professional who takes the job seriously.
- It looks after your bottom line
Public liability cover is there to help with the big costs, such as things like property damage or injury claims that could otherwise set you back. Without it, you could end up covering those expenses yourself.
Having a policy in place means you’re not left carrying the full load when something goes wrong.
- Subbies need their own cover
Here’s a common mistake: thinking your policy covers your subcontractors.
Most of the time, it doesn’t. Make sure your subbies are insured, or chat to us about options that keep your crew sorted, without leaving gaps in cover.
- The value stacks up
The price for cover is usually a drop in the ocean compared to what one claim could cost you.
It’s not just about peace of mind. It’s about keeping your business alive when the unexpected hits.
Seeing the benefits in action
Up until now, we’ve talked about how public liability insurance protects you from financial risk. But it does more than that. It can actually help you win jobs, maintain a strong reputation, and keep your projects on track when accidents happen. Here’s what that can look like in real life:
Example 1: Winning the job
Samantha runs a small plumbing business and was bidding on a big commercial project. The client made it clear: no proof of public liability insurance, no quote.
Luckily, Samantha had her policy up to date. Not only did she meet the client’s requirement, but she also came across as professional, organised and reliable. She won the contract, while other tradespeople without cover were automatically disqualified.
Having insurance here wasn’t just about risk. It directly helped her grow her business.
Example 2: Claiming without delays
Jake is a builder working on a landscaping project. One afternoon, while moving equipment, he accidentally cracked a client’s driveway. Thanks to his public liability cover, the claim was lodged and processed quickly.
The repair was done promptly, the client was happy, and Jake’s reputation stayed intact. If he didn’t have insurance, he would have had to cover the cost himself, juggle payments, and potentially face a frustrated client. Public liability insurance here saved him time, money and a whole lot of unnecessary stress.
All Trades Cover: We’ve got your back when it counts
Public liability insurance is more than red tape. It’s the difference between a quick fix and a financial nightmare. Whether it’s meeting licence rules, keeping clients happy, or bouncing back when things go wrong, having the right cover matters.
At All Trades Cover, we do much more than sell policies. We know the risks, the loopholes, and the tricks, and we make sure you’ve got the right cover that won’t let you down. We speak your language, we get how the job works, and we deal with the insurers so you don’t have to.
So if you need cover that holds up when the pressure’s on, talk to the team at All Trades Cover today. Let’s keep your business moving and the insurers honest.
Frequently asked questions
- How much public liability insurance do tradies usually need?
The right level of cover depends on the type of work you do, who you work for, and the potential risks involved. Some projects may only need $5 million cover, while government or commercial contracts often require $10 or $20 million or more, depending on the case. A reputable insurance broker can help you choose a level that meets both legal and client requirements.
- Does public liability insurance cover work done after I leave a site?
Yes, your public liability insurance can protect you if something you’ve done on the job later causes damage or injury, even after you’ve finished the work and left the site.
While it generally won’t cover the cost of fixing your own faulty work, it’s there to cover the resulting damage, which can easily run into tens of thousands of dollars, or more.
- Can public liability insurance be claimed as a tax deduction?
In most cases, yes. Because it’s a necessary business insurance expense, your premium is usually tax-deductible. However, it’s best to confirm with your accountant to make sure you’re claiming it correctly.
