The ABCs of business insurance for tradies: What you actually need

Running a trade business comes with risks, whether it’s a slip on-site, stolen tools, or a vehicle accident. But knowing exactly which types of insurance you actually need can be confusing. From public liability to tools and vehicles, getting insured properly protects your business and gives you peace of mind.

Public Liability Insurance

• Covers injuries to others or property damage caused during work.

• Essential for any tradie visiting client sites.

• Real-world example: A dropped ladder causes minor damage, your policy covers the costs.

Tools and Equipment Insurance

• Protects the gear you can’t afford to replace out of pocket.

• It can cover theft, loss, or accidental damage.

• Tip: Make a detailed inventory and update it regularly for accurate coverage.

Vehicle Insurance

• Your van or ute isn’t just transport, it’s often a mobile workspace.

• Comprehensive insurance protects both your vehicle and tools inside it.

• Tip: Check if your insurer covers work-related trips, including site-to-site travel.

Workers’ Compensation Insurance

• Mandatory if you employ staff.

• Covers medical costs and lost wages if an employee gets injured on the job.

• Avoid fines and protect your team’s wellbeing.

Optional Extras

• Business interruption: covers lost income if your operations are halted.

• Professional indemnity: protects against claims of negligence or advice errors.

Insurance doesn’t have to be complicated. Start with the essentials, add extras as your business grows, and regularly review your policies. The right coverage keeps your trade business protected, compliant, and ready for anything.

Ready to protect your business? Join our Bookkeeping Series to see what you need and what you can skip.