In the fast-paced world of construction and trades, subcontractors play a huge role in getting the job done. But when it comes to insurance, many subcontractors assume they’re covered under the builder or main contractor’s policy.
Spoiler alert: That’s often not the case.
So, if you’re a subcontractor working in Australia — whether you’re a plumber, sparkie, tiler or chippy — here’s what you really need to know about being protected on site.
Are Subcontractors Automatically Covered by the Builder's Insurance?
Short answer: No.
While builders and head contractors should carry public liability insurance, it usually only covers their business, not yours.
If you’re engaged as an independent subcontractor (which most tradies are), you’re considered your own business — meaning you’re responsible for:
Your own Public Liability Insurance
Covering your own tools
Potentially, your own income protection
So if something goes wrong and you’re not insured, the bill could land squarely in your lap.
What Insurance Do Subcontractors Need?
Let’s break it down:
✅ 1. Public Liability Insurance
This is the big one. If you accidentally:
Damage the client’s property
Cause injury to a third party
Leave tools or materials that cause someone to trip…
…you’re the one who can be held legally and financially responsible.
Cover range: $5 million, $10 million, or $20 million — depending on the site requirements.
🧰 2. Tools Insurance
Tools get stolen a lot. From the back of utes, job sites, or even on the way to smoko.
Tool insurance can cover:
Theft
Fire
Accidental damage
Make sure you check conditions around storage — for example, some policies won’t cover tools left in a vehicle overnight.
🚧 Real-Life Scenario:
Mark, a self-employed tiler in Melbourne, accidentally left a bucket of adhesive in a hallway. A client tripped, fractured their wrist, and made a claim. Mark didn’t have public liability insurance. He ended up paying over $12,000 out of pocket.
📝 How Do You Know if You’re Covered?
Ask yourself:
Am I getting paid through my own ABN?
Am I providing my own tools?
Am I working unsupervised or under my own direction?
If yes — you’re likely considered a subcontractor, and you need your own insurance.
How ProTrades Helps
We specialise in tradie insurance — no fluff, no unnecessary extras, just what you need to stay covered and get on with the job.
You can get:
Public Liability
Tool Cover
Fast Quotes
Certificates of Currency delivered same day
Ready to Get Covered?
Don’t assume someone else has your back — make sure you’re insured properly.
👉 Get a quote now and protect your trade the smart way.