Public Liability Insurance for Tradies

Public Liability Insurance is business insurance that can help cover legal costs and compensation payments if your business is found legally responsible for third-party injury or damage to someone else’s property. It is commonly used by tradies, contractors, subcontractors and SMEs working on-site, at client premises or around the public.

Public Liability Insurance can help cover third-party personal injury, third-party property damage, Products Liability where included, legal defence costs and compensation payments where covered by the policy. Cover depends on the policy wording, the incident, the evidence and insurer acceptance.

Public Liability Insurance does not usually cover employee injuries, your own tools, your own vehicles, your own plant, professional advice errors, deliberate acts, illegal conduct, known defects or the cost to fix defective workmanship itself. Other policies may be required for these risks.

Public Liability Insurance is not mandatory for every trade business in Australia. However, it is often required for licensing, contracts, tenders, commercial work, government work, council work and site access. Requirements vary by state, trade, licence type and contract.

Common Public Liability Insurance limits are $5 million, $10 million and $20 million. Smaller residential jobs may accept lower limits, while commercial, civil, mining, government and industrial work often requests higher limits. The required amount depends on your trade, client, contract and site access rules.

Yes. Sole traders commonly hold Public Liability Insurance, especially when working directly with clients, builders, property managers, councils or commercial clients. If you operate under your own ABN or need a Certificate of Currency, a separate policy is often requested.

It depends on the subcontractor arrangement, policy wording and insurer requirements. Independent subcontractors operating under their own ABN often need their own Public Liability Insurance. Labour-only subcontractors may need to be declared to the insurer. Subcontractor use should be reviewed before work starts.

No. Employee injuries are generally handled under Workers Compensation Insurance, not Public Liability Insurance. Workers compensation rules vary by state and territory. All Trades Cover can only offer Workers Compensation Insurance in WA due to licensing restrictions.

No. Public Liability Insurance does not usually cover your own tools or equipment. Tools and Equipment Insurance, also called General Property or Portable Equipment Insurance, may help cover tools if they are stolen, lost or damaged, subject to policy terms and exclusions.

No. Public Liability Insurance does not usually cover registered vehicles, utes, vans, trucks or trailers. Business vehicles usually require Commercial Vehicle Insurance. Plant and machinery may need Plant and Equipment Insurance.

Products Liability Insurance may cover claims arising from products your business supplies, installs, repairs, distributes, manufactures or imports. It is often included within Public Liability Insurance, but the limit and wording should be checked before relying on it.

Property in care, custody or control refers to third-party property temporarily under your control while you perform work. Some Public Liability Insurance policies include limited cover for this, but it is often subject to sub-limits and exclusions.

A Certificate of Currency is a document showing that an insurance policy is current at the date of issue. Builders, councils, clients, regulators and principal contractors often request a Certificate of Currency before allowing work to start.

A Certificate of Currency can often be issued quickly once cover is accepted and payment or cover instructions are finalised. Same-day documents may be available depending on the insurer, policy type and information required.

Yes. All Trades Cover can review insurance schedules and help explain clauses such as Principal’s Indemnity, Cross Liability, Waiver of Subrogation, Hold Harmless and Contractual Liability. Not every clause can be added, and changes remain subject to insurer acceptance.

Principal’s Indemnity is a policy extension that may provide certain cover to the principal for liability arising from the insured contractor’s work. It is often requested in construction, civil, council, government and mining contracts. Availability depends on the insurer and policy wording.

Cross Liability generally means the policy may respond as though each insured party is separately insured, subject to the policy wording. It is often requested where contracts involve principals, head contractors, subcontractors or related entities.

Waiver of Subrogation is a clause where an insurer may agree not to recover costs from a specified party after paying a claim. Builders, principals and government clients may request this wording, but insurer acceptance is not automatic.

Contractual Liability refers to liability your business accepts under a contract. Public Liability Insurance may not cover liability you assume under a contract unless the policy allows for it. Contract clauses should be reviewed before signing.

Public Liability Insurance does not usually cover the cost to fix or redo defective work. It may cover resulting third-party property damage or injury caused by defective work, depending on the policy wording and insurer assessment.

Public Liability Insurance may respond to underground services damage where covered by the policy. Many policies apply strict conditions, such as checking service plans, using BYDA records and following site procedures. The wording should be reviewed before excavation or trenching work starts.

You may need Professional Indemnity Insurance if your business provides advice, design, certification, inspection, consulting, reporting or professional services. Public Liability Insurance responds to physical injury and property damage claims. Professional Indemnity Insurance may respond to financial loss caused by professional service errors, where covered.

You may need Contract Works Insurance if your business is responsible for works in progress, materials, construction activity or project works. Public Liability Insurance does not usually cover the project works themselves.

All Trades Cover may be able to help structure insurance for related entities, trading names or business divisions, depending on the insurer and policy type. Each legal entity, trading name and business activity should be correctly disclosed.

Monthly payment options may be available depending on the insurer, premium funding arrangement and policy type. Costs, fees and terms should be reviewed before choosing monthly payments.

You will usually need to provide your trade, business structure, ABN, turnover, number of employees, subcontractor use, work type, state or territory, claims history, required limit and any contract wording or Certificate of Currency requirements.