Trades Insurance in Australia: A Complete Guide for Tradies & Sole Traders

Whether you're a carpenter, electrician, plumber, or general contractor, having the right insurance is essential to protect your livelihood. In this guide, we’ll explain everything about trades insurance in Australia — what’s covered, how much it costs, and what types of insurance tradespeople and sole traders actually need.

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What is Trades Insurance in Australia?

Trades insurance Australia-wide refers to a combination of policies designed to protect tradespeople and contractors from financial risks associated with their work. It often includes public liability, tool cover, personal accident, and more — bundled into a trades package insurance plan.

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What Does Trades Insurance Cover?

Each tradesperson has different needs depending on their trade, whether they’re working solo or hiring others, and the state they operate in. Here are common cover types included in a standard trades package insurance:

Trades Public Liability Insurance

This covers you if your work causes injury or damage to a third party. It's often mandatory for worksites or contracts.

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Tools, Plant & Equipment Insurance for Tradies

Also known as tool of trade insurance, this covers stolen, lost, or damaged tools — vital if you rely on expensive gear.

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Trades Personal Accident Insurance

If you’re injured and unable to work, this insurance can provide income protection while you recover.

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Motor Commercial Insurance Insurance

If your trade involves driving to and from work, you should have in place some sort of motor vehicle or commercial motor vehicle insurance to ensure that you have protection in case you cause, or get into an accident. Commercial motor vehicle policies can provide some additional benefits such as small amount of tools coverage if your vehicle is broken into –so be sure to check your policy wording or us ask for assistance to check for you.

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What is Trade Indemnity Insurance?

This provides protection against claims of negligence, professional error, or breach of duty if your trade includes advisory or design work.

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What Insurance Do Tradespeople and Sole Traders Need?

If you're wondering what insurance do trades need or what insurance should a tradesman have, here’s a breakdown:

Essential Insurance for Tradies

- Trades public liability insurance

- Tool and equipment cover

- Personal accident cover

- Optional: indemnity, vehicle, or workers compensation if employing staff

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Sole Trader Insurance in Australia

If you're a sole operator, you may be asking what insurance do I need as a sole trader or what insurance do sole traders need. You typically need:

- Public liability insurance

- Sole trader personal accident insurance

- Tool or vehicle cover

Sole trader insurance cost can range from$500 to $2,000+ annually, depending on your coverage needs and businessactivities.

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State-Specific Insurance Tips: VIC, NSW, QLD

- Victoria: Worksafe Victoria may requireinsurance if you hire employees.

- NSW: Some government contracts require aspecific level of trades public liability insurance.

- Queensland: QBCC may require evidence ofinsurance to license certain trades.

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Frequently Asked Questions About Tradesman Insurance

What insurance do trades need in Australia?

Public liability, tool cover, and personalaccident insurance are the core policies most trades require.

How to get trade insurance?

Simply go to our quote page and select thetradesman box and we help get this set up.

What is covered in general liabilityinsurance?

It typically covers third-party injury,property damage, and associated legal fees resulting from your work if theevent is triggered as such.

Do I need insurance as a sole trader?

Typically yes this would be highlyrecommended, sole traders still face risks like injuries, tool theft, andaccidental damage. Having insurance is essential.

What is all trade insurance?

Often considered that it is a bundled policy that includes several covers — public liability, tools, and other options available — ideal for simplifying your protection all in one.

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Need Help with Trades Insurance?

Choosing the right insurance package can be overwhelming with so many options. Whether you're a seasoned contractor or a new sole trader, I can help you navigate your trades insurance requirements and find a plan that fits your business and budget.

At Grid Insurance, I specialize in construction and tradesman insurance across Victoria, NSW, Queensland, South Australia, Tasmania, Northern Territory and Western Australia. Let me simplify your cover, compare options, and save you time and money.

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Contact me directly for tailored advice and quotes — obligation free. Let’s protect your tools, your time, and your trade.

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