Many people find their way to our website via Google each month by asking certain questions.

One of the most common questions asked is ‘what is trade insurance?’

In this article we will try to answer that very question for you.


There is no single form of insurance known as ‘trade insurance’. Instead it is a range of insurance types which are designed to protect tradies from certain risks.

Some of the most common forms of trade insurance are as follows:

  • Public Liability
  • Income Protection
  • Tool Insurance

Each of these types of insurance cover different risks faced by tradesmen both on the job and at home.

There are other forms of cover for tradesmen such as life, TPD and trauma insurance, but for now we will stick to the three main forms of cover.

Public Liability

This is the most common form of trade insurance, and is designed to protect tradies from the financial consequences of causing property damage or personal injury to others.


Public liability is not only popular with tradies because it’s a great form of protection. In many cases the cover is actually mandatory depending on which worksites you work on and which licenses you require.

You can learn more about this form of cover on the public liability insurance section of our website.

Income Protection

Income protection is a close second when it comes to the most common forms of trade insurance.

This form of cover can protect up to 75% of your income for a period of time if you are unable to work due to an illness or injury.

Income protection is mandatory on some worksites for all subcontractors due to the fact that they are not covered by sick leave or worker’s compensation.

You can learn more about this form of cover on the income protection section of our website.

Tool Insurance

The last of the ‘big three’ forms of trade cover is tool insurance.

Tool insurance can protect your tools against theft and a range of other risks. Instead of having to fork out your own money for replacement tools you can rely on the insurance company to look after you.

The coverage offered by tool insurance can differ greatly from one insurer to the next, so it’s important to read the policy wording to see what is and isn’t covered by each different policy.

You can learn more about this form of cover on the tool insurance section of our website.

More Information

On the surface trade insurance is fairly straightforward, but there are also plenty of complexities once you start digging deeper.

It is entirely possible to take out these types of insurance yourself direct from an insurance company, however a better idea may be to use the services of an expert broker.

By using a specialist trade insurance broker you can rely on their knowledge and expertise to get you the right cover at the right price without any nasty surprises at claim time.

You don’t have to use a broker for your trade insurance, but it’s certainly worth considering.


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