Key Takeaways:
- Carpenters face real risks, on-site, in transit, and with every job.
- Public Liability is essential for site access and protecting client property.
- Workers Compensation is a legal requirement if you have employees.
- Personal Accident & Illness cover keeps your income flowing if you’re injured or sick.
- Tools insurance helps you replace stolen or damaged gear quickly.
- Professional Indemnity offers protection if advice or planning leads to disputes.
- Optional extras like Commercial Vehicle, and Cyber insurance add smart layers of cover, depending on how you work.
- All Trades Cover helps carpenters sort the right insurance without the runaround; from quotes to claims, we make it simple.
- Not every carpenter needs every policy, but the right mix of cover keeps your business moving, your gear protected, and your income secure.
Carpentry is one of the most hands-on, high-risk trades. You’re working on job sites, handling expensive tools, navigating client expectations, and relying on your body to get the job done. One wrong move, or one freak accident, and you could be left footing the bill for property damage, injury, or stolen gear.
So, what insurance does a carpenter need to stay protected, stay legal, and keep the business running strong? Let’s break it down with no fluff, just straight-up advice tailored for Aussie chippies, whether you’re a sole trader, subcontractor, or running a small crew.
Why insurance matters for carpenters
Cutting frames on a new build, fitting out kitchens, or tackling renovations all come with risks. Damaging a client’s property, getting injured on-site, having your tools stolen, or facing legal claims for work gone wrong; these are real issues that can hit your bottom line. Carpenter’s insurance exists to help you recover, keep the work flowing, and protect your livelihood when things go sideways.
The must-have covers (and why they matter)
When it comes to carpenter’s insurance, having the right protection in place can be the difference between a minor hiccup and a major financial hit. From site accidents to tool theft and unexpected downtime, these are the core types of insurance that help keep your work, your income, and your business on track.
Public Liability insurance
If you only get one insurance policy, make it this one. Public Liability insurance covers you if your work causes damage to someone else’s property or if someone is injured because of what you’ve done (or failed to do).
Say, for example, you’re installing skirting boards and your nail gun misfires into a client’s glass door. This cover can save you thousands in repairs and legal headaches.
It’s also required on most work sites. If you don’t have it, you may be shown the door before you even start.
Workers Compensation insurance
If you employ anyone, apprentices, labourers, or admin staff, you’re legally required to have Workers’ Compensation. It covers wages, medical bills, and rehab if someone on your team gets hurt at work.
In WA, it’s managed by WorkCover WA. Not having a cover in place can lead to fines or stop-work notices, even if it’s an honest mistake. It’s also worth knowing that contractors, casuals, and even directors may count as workers depending on how your business is set up.
Personal Accident & Illness insurance
Carpentry is physically demanding work. From hauling timber to installing cabinetry overhead, one wrong move can put you out of action. Personal Accident & Illness insurance is designed to help sole traders and small business owners stay financially afloat when they’re off the tools.
It typically includes:
- Weekly income replacement (often up to 85%)
- Lump sum payouts for permanent disability or accidental death
- Minor broken bone benefits, depending on the policy
- Optional extras like illness cover, hospital stays or business expenses
- 24/7 cover; on-site or off the job
- For policies under $1,500 per week, most insurers don’t require financials. Over that amount, documentation is usually needed.
If you don’t have Workers’ Comp and the job stops with you, this kind of cover keeps your income steady and your business moving, even when you can’t.
Tools insurance
Tools are essential to your work, and losing them can put your entire business on hold. Tools insurance covers the cost of replacing stolen, lost, or damaged tools, whether they’re on-site, in your ute, or in the shed.
Top Tip: Keep receipts and take photos of your gear. It speeds up claims and keeps insurers honest. That includes cordless drills, nail guns, levels, saws, and other essential carpentry gear, locked in your ute or stored safely on site.
Professional Indemnity insurance
This one’s often overlooked but important if you offer any advice, design, or project oversight.
If a client follows your plan and something goes wrong (like structural issues or code violations), you could be liable. Professional Indemnity insurance covers legal costs and damages.
You might need this cover if you:
- Draw or approve build plans
- Advise on materials, finishes, or site setup
- Act as project lead or site supervisor
- Sign off on reports or compliance checks
Optional covers worth considering
Optional extras can offer added peace of mind depending on how your business runs:
- Commercial Vehicle insurance: Covers not just the ute or van itself, but often the custom fit-outs and mounted gear inside. Commercial Vehicle cover is especially useful if your tools are stored in the vehicle overnight or if you rely on it for daily site travel.
- Cyber insurance: If you store client details, send digital quotes, or take online payments, Cyber cover can protect you from hacks, data breaches, or system downtime. It’s becoming increasingly relevant even for small trade businesses.
- Contract Works insurance: Handy if you’re working on fit-outs, decks, or larger renovations where the work isn’t yet handed over. Contract Works insurance protects the materials, tools, and structure while the job is in progress, which is especially useful for fixed-price or staged contracts.
At a glance: what insurance does a carpenter need?
Here’s the core cover most carpenters should have in place:
- Public Liability: A must-have for job site access and client protection
- Workers Compensation: Legally required if you’ve got anyone on the books
- Personal Accident & Illness: Keeps the income coming if you’re off the tools
- Tools Insurance: Gets your gear sorted if it’s stolen, lost, or damaged
- Professional Indemnity: Worth it if you give advice, draw plans, or manage projects
Optional extras like Commercial Vehicle and Cyber insurance can add smart protection based on how your business runs.
Get the right cover without the runaround
You know carpentry inside and out. We know trade insurance just as well. At All Trades Cover, we specialise in insurance for tradies like you with clear answers, direct access to people who’ve worked with you, and advice that actually makes sense for your business.Still wondering what insurance does a carpenter need to keep their business secure? Give us a call or get a fast, obligation-free quote online. We’ll keep the insurers honest, and you covered.
Frequently Asked Questions
- What insurance does a self-employed carpenter need?
If you’re working for yourself, the most important covers are:
- Public Liability: for site access and damage protection
- Tools insurance: to replace stolen or damaged gear
- Personal Accident & Illness: to support your income if you’re injured or sick.
- If you provide any design advice or site supervision, Professional Indemnity would be a good idea as well.
- Is Public Liability Insurance mandatory for carpenters?
Public Liability Insurance isn’t technically required by law, but it’s strongly recommended, and in most cases, expected. Builders, contractors and commercial clients will often ask for proof of cover before letting you on site. Without it, you could lose jobs or face major costs if something goes wrong.
- Can I bundle my carpenters’ insurance into one policy?
Yes, Business Package insurance can combine Public Liability, Tools, Property, and more into one tailored policy. It’s a good option if you’re running a small team, using a workshop, or want to keep things streamlined.
- Do I need insurance if I subcontract to a builder?
Yes. Even if the builder has their own insurance, you’re usually still responsible for your own Public Liability and tools. Some sites will ask for your certificate of currency before you start.
- Can I get insurance if I’ve had a previous claim?
Yes. A past claim won’t necessarily stop you from getting cover, but it may affect your premium or what’s included. Be upfront during quoting; insurers prefer honest details, and so do we when helping you get the right fit.
