Why These Covers Matter for Tradies
If you work as a tradie in Australia, insurance isn’t just a “nice-to-have” — it’s often essential for compliance, contracts, and peace of mind.
Two of the most important policies are:
Public Liability Insurance – Covers you if your work causes injury to another person or damage to their property.
Professional Indemnity Insurance – Covers you if a client claims your advice, design, or professional service caused them financial loss.
For many trades, having the right cover is required by law, licensing bodies, or contracts. In this guide, we break down requirements by trade, so you know exactly what’s needed in your industry.
What is Public Liability Insurance?
Public liability insurance helps cover legal costs and compensation if a third party — such as a customer, passer-by, or another contractor — claims your work caused them injury or property damage.
Example:
You’re a plumber and a leaking pipe you installed floods a client’s property.
You’re a carpenter and your ladder falls, damaging a customer’s car.
Professional indemnity insurance covers claims for financial loss caused by your professional advice, designs, or services. While often associated with consultants, it’s increasingly relevant for trades that:
Provide design-and-construct services
Offer specialist technical advice
Sign off on compliance certificates or inspections
Example:
An electrician designs a wiring layout that later fails an inspection, causing project delays and extra costs.
A roofer recommends a specific installation method that leads to leaks and costly repairs.
Why Requirements Vary by Trade
Not all trades carry the same risk. High-risk work like roofing may require larger public liability cover, while trades offering design or certification might also need professional indemnity.
Insurance Requirements by Trade
(Always confirm with your state licensing authority, industry body, or major contractors for current requirements.)
Public Liability: Minimum $5 million in most states; commercial sites may require $10 million+.
Professional Indemnity: May be required if you offer design, inspection, or compliance services.
Licensing:
QLD & VIC: Mandatory public liability, often bundled with consumer protection insurance.
NSW: Not always a licence requirement but essential for most jobs.
Risks: Electrical fires, faulty design advice, injury to others.
Public Liability: Usually $5 million minimum, with additional cover for defects or plumbing work warranties.
Professional Indemnity: May be required for compliance sign-offs or specialist plumbing design.
Licensing:
VIC & SA: Public liability mandatory for licensing.
WA: May require defects insurance.
Risks: Water damage, gas leaks, design flaws in systems.
Public Liability: Generally $5 million; larger commercial contracts may need $10 million.
Professional Indemnity: Rare but relevant if you do structural designs or provide building consultancy.
Licensing: Usually contractual, not legal.
Risks: Property damage, faulty advice on materials or methods.
Public Liability: $10–$20 million due to high-risk work at heights.
Professional Indemnity: Important if you provide roof design or inspection reports.
Licensing: Often a contractual requirement.
Risks: Falling objects, faulty roof design causing leaks.
Public Liability: $5–$10 million depending on project scale.
Professional Indemnity: Rare, but could apply for colour consulting or specialist surface preparation advice.
Licensing: Sometimes required by state bodies for larger jobs.
Risks: Overspray damage, incorrect surface treatment recommendations.
Tilers
Public Liability: Usually $5 million minimum.
Professional Indemnity: Relevant if advising on waterproofing systems or compliance.
Licensing: May be part of general building licence conditions.
Risks: Slips/falls on site, faulty waterproofing advice.
How Much Cover Do You Need?
When it comes to insurance, it’s almost always better to have more cover than the bare minimum — especially if you want to win bigger contracts and protect your business from unexpected claims.
Public Liability:
For most tradies, $10 million is the sensible starting point — even “low-risk” trades can face large claims.
High-risk trades or those working on commercial/government projects should consider $20 million to meet site requirements and future-proof their cover.
Professional Indemnity:
We recommend starting from $1 million — smaller limits like $250k can be exhausted quickly in complex disputes.
Trades offering design, inspection, or compliance sign-off should look at $2–$5 million for full peace of mind.
Remember: Bigger claims are rare, but when they happen, they can be devastating. A slightly higher premium now is far cheaper than paying the gap on a multi-million-dollar claim later.
What Happens If You Don’t Have the Required Cover?
Licence suspension or refusal
Loss of contracts and site access
Personal financial liability for claims
Get the Right Cover for Your Trade
At ProTrades Insurance, we arrange public liability and professional indemnity packages tailored to your trade and state requirements. We’ll make sure you’re fully compliant and protected from both physical and financial loss claims.
📞 Call 1300 118 637 or Get a Fast Online Quote today.
Frequently Asked Questions
Do tradies need public liability insurance?
Yes. Most tradies need public liability insurance to access job sites, meet contractor requirements and protect against third-party injury or property damage claims. Many commercial builders and councils make it a condition of engagement.
Do tradies need professional indemnity insurance?
You should consider professional indemnity if you provide advice, designs, inspections, certifications or sign-offs. It covers financial loss arising from alleged errors or omissions in your professional services.
How much public liability insurance do I need?
For most tradies in Australia, $10 million is a practical starting point. High-risk trades or anyone working on commercial/government projects should consider $20 million to meet site requirements and reduce exposure to large claims.
How much professional indemnity cover should I choose?
Start at $1 million. If you offer design-and-construct, inspections or compliance sign-off, consider $2–$5 million because legal and expert costs can escalate quickly in complex disputes.
Is public liability insurance mandatory for licensing or site access?
Requirements vary by state and trade, but many licences and principal contractors require proof of public liability (often $5–10m+). Without it you may be refused site access or contracts.
What’s the difference between public liability and professional indemnity?
Public liability covers third-party injury or property damage caused by your work. Professional indemnity covers financial loss caused by your advice, design or professional services. Many tradies need both.
I’m a sole trader—do I still need these covers?
Yes. Being a sole trader does not limit your liability. Public liability protects you on site; professional indemnity protects you if clients rely on your advice or designs.
Do subcontractors need their own policies?
Usually yes. Many head contractors require subcontractors to hold their own public liability (and sometimes professional indemnity) and to provide a valid Certificate of Currency.
How quickly can I get a Certificate of Currency?
In most cases ProTrades Insurance can issue a Certificate of Currency on the same day once cover is arranged—often within hours for standard risks.
What affects the cost of public liability or professional indemnity?
Trade type and risk, turnover, staff numbers, subcontractor usage, work locations (e.g., commercial sites, heights), claims history and the limits/excess you choose all influence premium.
Are these policies valid Australia-wide?
Yes—most policies cover work anywhere in Australia, subject to the policy terms. Tell us if you work interstate or take on government or principal-contractor jobs with higher limits.
Can I bundle public liability and professional indemnity?
Often yes. Bundling can simplify administration and may reduce overall premium. Ask ProTrades Insurance about combined packages tailored to your trade.