Trades Insurance

Trades Insurance

Trades insurance is not a single policy — it is a program of cover designed around the specific risks of a trade business: liability on job sites, tools and equipment, vehicles, and the ability to keep operating after an insured event. The right program depends on what trade you work in, how your business is structured, where you work and what contracts you hold. Ipswich Insurance Brokers is a Steadfast and CBN member broker — we compare options across a panel of insurers and structure cover to match your actual exposure.

What is trades insurance?

Trades insurance is a general term for a suite of insurance products designed for contractors and trade-based businesses. It typically combines public and products liability cover with protection for tools, portable equipment and commercial vehicles — and may extend to business interruption, workers compensation (a separate statutory product), professional indemnity for trades that provide advice, and specialist sections depending on the nature of the work.

Common trades that use this type of insurance include carpenters, electricians, plumbers, painters, plasterers, tilers, landscapers, concreters, steel fabricators, mechanics, refrigeration technicians, air conditioning and HVAC contractors, pool builders, fencing contractors, and similar hands-on operators. The risk profile differs significantly between trades — and between a sole trader on the tools and a business with multiple crews, vehicles and subcontractors.

As a broker, Ipswich Insurance Brokers does not sell insurance products directly. We act on your behalf, approaching a panel of insurers and comparing policy wordings, conditions and terms before presenting options suited to your trade and business structure.

What trades insurance may include

The cover sections relevant to a trade business depend on the trade, business size and operating arrangements. A program may be structured to include some or all of the following, subject to insurer appetite and underwriting acceptance:

• Public and products liability: Cover for claims alleging bodily injury or property damage to third parties arising from your business operations or products and materials you supply. This is the most commonly required trade insurance section — principals, clients and head contractors typically require it. Limits, exclusions and industry-specific conditions apply.
• Tools and equipment: Portable tools and equipment taken to job sites, subject to scheduling, limits and security conditions. Unattended vehicle exclusions are common — understanding these before a claim is important.
• Commercial motor: Vehicles used in the business — utes, vans, trailers and larger vehicles where applicable. Operating use, driver profiles and payload declarations affect underwriting.
• Business property: Workshop, storage premises, fixed equipment and stock where relevant to the trade.
• Business interruption: Lost income following a significant insured event that prevents or reduces trading. More relevant for trades with a fixed workshop or significant equipment dependency.
• Contract works (construction): Cover for the works being constructed while in progress — relevant for builders, concreting contractors and others who carry risk on work in progress. Separate from property and liability.
• Personal accident and illness: Income replacement for sole traders who cannot work due to injury or illness. This is a separate product from workers compensation and applies where there is no employer-employee relationship.
• Professional indemnity: For trades that provide a design, specification or professional service component — kitchen designers, draftspeople, engineers working in a trade context. Advice-related liability is typically excluded from standard public liability policies.

Common gaps and issues we see

• Liability exclusions for specific work types: Some trades face exclusions in standard liability policies — work at heights, excavation, demolition, asbestos removal, and work on certain premises types. Knowing what is excluded before you take on a contract matters.
• Tools left in vehicles: Most tools policies include an unattended vehicle condition — if tools are stolen from a locked vehicle and there is no forced entry, or if the vehicle is left overnight at a site, claims can be declined. Understanding these conditions in advance helps manage risk.
• Subcontractor management: Using subbies without verifying their own insurance creates liability exposure. If a subcontractor causes a loss and has no valid insurance, the principal contractor may face the claim.
• Contract works gaps: Building work in progress is frequently not covered under standard property policies. If a partially completed project is damaged before handover, the loss can fall on the contractor. Contract works cover addresses this specifically.
• Contractual liability: Some contracts include liability clauses that extend beyond what is covered under standard public liability. Reviewing contracts before signing — and understanding what the insurance can and cannot cover — prevents misaligned expectations.
• Workers compensation: This is a statutory product in Queensland governed by WorkCover. It is separate from general trades insurance. If you employ staff, including working directors in some circumstances, workers compensation is a legal requirement. We can refer to a specialist for this requirement.
• Income protection for sole traders: Many sole traders have no income if they are injured or ill and cannot work. Standard public liability does not address this. A personal accident or income protection product (separate from general insurance) may be appropriate — we can discuss referral to a financial adviser where relevant.

Sole traders vs businesses with staff

The structure of a trade business significantly affects what insurance is needed and how it is arranged.

• Sole trader on the tools: Priority sections are usually liability, tools, and commercial motor. Workers compensation does not apply to self-employed sole traders under the standard Queensland scheme — but income protection may be relevant.
• Business with employees: Workers compensation becomes a legal requirement. Multiple vehicles, a larger tools schedule and potentially a business property section become relevant. Subcontractor management also becomes a greater consideration.
• Business with subcontractors: Principal contractor liability exposure is an important consideration. The extent to which you are responsible for subbies’ actions — and whether their own insurance is adequate — needs to be addressed in the placement conversation.

How we work with you

1. Trade and business profile: We discuss your trade, business structure, work types, site types, vehicle fleet, tools schedule and any subcontractor arrangements.
2. Contract review: Where you hold principal contracts with insurance requirements, we review these to ensure your program meets contractual obligations.
3. Market approach: We approach insurers with appetite for your specific trade and compare policy terms — not just headline figures.
4. Placement and documentation: We arrange binding and issue certificates of currency for any contractors or clients who require them.
5. Renewal review: We review your program at renewal and contact you if changes — new vehicles, additional staff, new work types or new premises — affect your program during the year.

Making a claim

For liability claims, prompt notification to the insurer — even if a formal claim has not yet been received — is important. Do not admit liability or make settlement offers without insurer involvement. For tools and equipment claims, a police report, photographs and a list of stolen or damaged items supports the process. We assist with claim notification, follow up with assessors and escalate where needed. Claim outcomes are determined by the insurer under policy terms — we cannot guarantee results, but we ensure your position is clearly represented.

Frequently asked questions

Do I need public liability insurance to get work?
Most principals, builders and councils require contractors to hold current public liability insurance before commencing work. Many also specify minimum limits — commonly $10 million or $20 million. We can advise on what is typically required for your trade and issue certificates of currency as needed.

Are my tools covered if stolen from a locked ute overnight?
Possibly, but conditions apply. Most policies require evidence of forced entry for vehicle theft claims. Some also restrict cover for tools left in vehicles overnight or on site after hours. We discuss these conditions specifically during placement so you understand what is and is not covered.

Do my subbies need their own insurance?
Yes. Relying on your own liability policy to cover subcontractors’ work creates risk. We recommend verifying that subcontractors hold current public liability insurance and can provide certificates of currency before they commence work for you.

Is contract works the same as public liability?
No. Public liability covers claims from third parties for injury or property damage. Contract works covers the physical work being constructed — damage to the works in progress before handover. Both may be needed depending on the type of work you do.

Related pages

Licencing, registration and insurance for trades in Queensland

Many trades in Queensland are required to hold a current contractor’s licence issued by the Queensland Building and Construction Commission (QBCC) or the relevant licensing authority for the trade. Some of these licensing requirements include mandatory insurance — for example, QBCC licensees are required to hold home warranty insurance for regulated building work. Understanding what insurance is legally required for your licence category is important, and separate from the commercial insurance program we arrange.

We can discuss what commercial insurance is typically required alongside regulatory requirements — but we are not the source of advice on licensing obligations. If you are unsure what your licence requires, the relevant licensing body is the primary reference point.

Contract works insurance — who needs it?

Contract works insurance (also known as construction all risks or contractors all risks) covers physical damage to works in progress — the project being built, before it is handed over to the owner. It is relevant for building contractors, concreting contractors, cabinet makers installing on-site, and other trades that carry a risk of loss on work in progress between commencement and handover.

Contract works cover is a distinct product from public liability. It covers damage to the works themselves — fire, storm, theft, vandalism and accidental damage during construction. The level of cover needed depends on the contract value, the duration of projects, the site type and whether the principal provides principal-arranged covers. We assess these requirements specifically when placing cover for construction-related trades.

Trades insurance and subcontractor obligations

The relationship between principal contractors and their subcontractors creates insurance obligations that need to be addressed on both sides. As a principal contractor, you may have contractual obligations to ensure subbies hold appropriate insurance — and your own liability policy may require evidence of this. As a subcontractor, you may be required to provide certificates of currency to the principal before commencing work.

We can assist with both sides of this relationship — ensuring your own cover meets principal requirements, and advising on what to look for when verifying subcontractor insurance. Issuing certificates of currency to principals and head contractors is a standard part of our service for trade clients.

Key questions to ask before finalising trades insurance

• Does my public liability policy cover the specific types of work I do — site types, materials used, any design or specification component?
• What are the conditions for tools and equipment cover — particularly regarding unattended vehicles and overnight storage on sites?
• Does my liability cover extend to the work of my subcontractors, or does each subbie need to hold their own cover?
• If I carry out building or construction work, do I have contract works cover in place for work in progress?
• Do I hold the liability limits required under my contracts — some principals require $10M or $20M as a minimum?
• Are all my commercial vehicles declared with correct operating use and driver details?
• Do I need professional indemnity cover for any design or specification work I carry out alongside the trade work?
• If I am a sole trader, do I have income protection in place if I cannot work due to injury or illness?
• Are workers compensation obligations for any employees correctly understood and separately arranged?

We work through these questions at placement and renewal. Understanding what is and is not covered — before you take on a contract or a new work type — prevents the most common and costly insurance misunderstandings for trade businesses.

Your rights as an insurance client

General insurance in Australia is regulated under the Corporations Act 2001, the Insurance Contracts Act 1984 and ASIC’s licensing framework. Insurers who are members of the Insurance Council of Australia also subscribe to the General Insurance Code of Practice, which sets standards for sales processes, claims handling, complaints resolution and communication with policyholders.

As a client of an AFSL-licensed broker, you have specific rights — including the right to receive a Financial Services Guide before advice is given, a Product Disclosure Statement before a financial product is purchased, and a Statement of Advice where personal advice is provided. You also have the right to access a complaint and dispute resolution process — including escalation to the Australian Financial Complaints Authority (AFCA) if a complaint cannot be resolved directly.

Our obligations as a broker under the Corporations Act include acting in your best interests, disclosing remuneration and conflicts of interest, providing accurate and complete information, and maintaining adequate records of advice and instructions. We take these obligations seriously — not because they are regulatory requirements, but because they are the foundation of a working professional relationship.

Our Financial Services Guide, Duty of Disclosure statement and Complaints and Dispute Resolution process are all available on this website. If you have a complaint about our service, we encourage you to contact us directly in the first instance. Details of our complaints process are on the Complaints & Dispute Resolution page.

About Ipswich Insurance Brokers

Ipswich Insurance Brokers is a general insurance broker operating under an Australian Financial Services Licence (AFSL). We are a member of the Steadfast Group — Australia’s largest insurance broker network — and also a member of CBN (Community Broker Network). These memberships provide access to a broad panel of approved insurers, exclusive policy wordings and a support network that extends throughout the claims process.

We act on your behalf — not on behalf of any insurer. Our obligation is to understand your situation accurately, approach appropriate markets, compare policy terms and conditions, and present options that suit your needs. We are remunerated through commission paid by the insurer at the time of placement. Where additional fees apply, these are disclosed upfront and in our Financial Services Guide, which is available on this site.

We do not make promises about premiums, coverage outcomes or claim results. Insurance is a financial product governed by policy wordings and terms — our role is to ensure those terms are appropriate for your situation, accurately declared, and clearly understood before you commit. Clients who understand their cover are better placed to manage risk and better prepared when they need to make a claim.

We work with clients across a range of industries and personal insurance categories. Our panel access through Steadfast and CBN means we are not restricted to a single insurer’s product range — we compare across multiple markets for each risk we place.

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