Trades & Construction Insurance
Tailored insurance solutions for builders, electricians, plumbers, and construction professionals.
Why Construction Insurance Is Critical
Construction has the highest work-related injury rate in Australia. Comprehensive insurance protects against the unique risks facing trades and construction businesses.
188
Worker fatalities in Australia (2024)
45
Construction fatalities in 2023 (36% above 5-year average)
16,088
Serious workers' compensation claims in construction
Construction has the highest work-related injury rate at 59 per 1,000 people. There were 146,700 serious workers' compensation claims in 2023-24, translating to more than 400 serious claims per day across Australia.
Falls from heights caused 30% of construction fatalities, with 45% of all fall-from-height worker deaths occurring within the construction industry. Body stress accounts for 37% of workplace claims, while traumatic joint, ligament, muscle, and tendon injuries make up 40% of claims by nature of injury.
IMPORTANT NSW UPDATE: Mandatory Professional Indemnity from July 1, 2026
From July 1, 2026, under the Design and Building Practitioners Act 2021, it will be mandatory for all registered building practitioners in NSW to hold adequate Professional Indemnity insurance.
The NSW Government announced a 12-month extension on June 25, 2025, recognizing the challenges builders face in obtaining Professional Indemnity insurance. This makes the final cut-off date July 1, 2026.
Mandatory Coverage Requirements for Construction
Many contracts you enter into will have a requirement for public liability insurance, with minimum amounts ranging from $5 million to $20 million. If you hire employees, workers' compensation insurance is compulsory under Australian law.
Essential Coverage Types
Public & Products Liability Insurance
Public liability insurance is non-negotiable for construction businesses. This coverage protects against third-party injury or property damage claims, which can otherwise devastate a small business's finances.
Recommended Coverage Levels:
- $10 million or $20 million for most builders (minimum $5 million not recommended)
- Coverage for on-site and off-site incidents
- Protection against third-party property damage
- Personal injury claim coverage
Mandatory Requirement: Whether working as an electrician, plumber, or handyman, you are often required to have public liability insurance, and in the case of some licensed trades, it's mandatory.
Contract Works Insurance
Contract works insurance (also called builders risk insurance) protects your projects during construction. This coverage is particularly crucial for Australia's volatile weather conditions.
- Materials and labour protection
- Site security coverage
- Weather damage protection
- Active project coverage
Professional Indemnity Insurance
Protects you from claims of negligence, design errors, or breach of duty in your professional services. Essential for builders who provide advice, designs, or plans.
- Negligence claim protection
- Design error coverage
- Legal cost protection
- Breach of duty coverage
Tools & Equipment Insurance
Your tools and equipment represent a significant investment. Specialized tools insurance ensures you can quickly replace essential equipment if it's damaged or stolen.
Theft Protection
Coverage for stolen tools and equipment
Damage Coverage
Protection for damaged equipment
Quick Replacement
Fast claims for business continuity
Additional Coverage Requirements
Home Warranty Insurance
Home Warranty insurance is the one type of cover that you as a builder are required to take out, but it actually provides cover for homeowners. This is mandatory for residential building work.
What it covers: Ensures homeowners aren't left with a half-finished house if you or a subcontractor unexpectedly:
- • Pass away
- • Disappear
- • Become insolvent
- • Fail to respond to a rectification order within 30 days
Workers' Compensation
If you hire employees, workers' compensation insurance is compulsory under Australian law. It's a state-based insurance scheme providing protection to employees who get hurt or sick at work.
- Medical expenses coverage
- Lost wages for injured employees
- Covers working directors
- Legally mandator if you have employees
2025 Cost Insights
Affordable Coverage for Contractors
For smaller contractors, cover is available for most trades from around $600 per year for a basic $5 million public liability policy for residential building work.
Cost vs. Risk: While a $600 annual premium may seem like an expense, compare that to the average claim of $84,000 or potential settlements exceeding $100,000. Insurance is an investment in your business's survival.
State-Specific Requirements
Important Compliance Information
Understanding state-specific insurance requirements is crucial for compliance and protection. Each Australian state has unique mandates that affect small construction businesses differently. Ensure you're meeting your local regulatory requirements.
Our Underwriting Partners
We work with Australia's leading construction and trades insurance underwriters:
Allianz Commercial
Tailored engineering and construction insurance solutions for contractors, developers, and businesses
ProRisk
Underwrites all public liability products for builders with coverage up to $50 million
Trade Risk
Managing insurance for over 10,000 trade businesses across Australia
iBuild Insurance
30+ years exclusive focus on building, construction, and trades industries
IMAR Insurance
35+ years providing specialized tradies and builders insurance nationwide
Ausure
Nationwide coverage for construction businesses in all states and territories
Specific Products Available
Public Liability Insurance
Protection against third-party injury and property damage claims during construction activities
Coverage from $5 million to $50 million per occurrence available
Contractors All Risks (CAR)
Comprehensive protection during construction phase including materials, works, and temporary structures
Also known as Contract Works Insurance
Professional Indemnity
Coverage for design professionals and advisory services including architects and engineers
Essential for design and build practitioners
Tools & Equipment Cover
Protection for portable tools, machinery, and contractor's plant and equipment
Covers theft, loss, and damage to essential work equipment
Emerging Risks in 2025
Cyber Liability for Construction
With 2,834 reported cyber incidents in the construction sector last year, cyber liability insurance has become essential for modern construction businesses.
Construction businesses increasingly use digital project management, cloud storage, and electronic invoicing systems—all of which are vulnerable to cyber attacks and data breaches.
Protect Your Construction Business Today
Don't risk devastating financial losses. Get comprehensive trades and construction insurance tailored to your business needs.