Tradesman Insurance: What You Actually Need

A plain guide to the insurance cover that actually matters for tradespeople. Public liability, tool cover, vehicle, and more, without the jargon.

Insurance is one of those topics every tradesperson knows they should understand properly and most don't. The jargon is confusing, the quotes vary wildly, and most advice online is really a sales pitch for a specific broker.

This guide cuts through that. It covers the insurance cover that actually matters for a working tradie, roughly what each one costs, and when you really need it. It's a general guide, not advice for your specific situation. Insurance rules, requirements, and premiums vary hugely by country and trade, so always get specific quotes for your country and situation.

Public liability insurance

Public liability is the core insurance for tradies. It covers you if your work causes damage to a client's property, or if someone is injured because of something you did. If you drop a pipe through a ceiling, flood a kitchen, or a client trips over your toolbox, public liability pays for the repairs or claims.

Most trade clients, especially commercial ones, will ask for proof of public liability before they let you start work. Cover of £1 million to £5 million is standard in the UK, R5 million to R20 million in South Africa, AUD 5 million to AUD 20 million in Australia, and $1 million to $2 million in the US. Annual premiums typically run from a few hundred to a couple of thousand depending on trade and turnover.

If you do any work on other people's property, this is non-negotiable. Operating without it is a single bad day away from losing your house.

Professional indemnity

Professional indemnity covers you if your advice or design work causes a client a financial loss. For most hands-on trades, it's less important than public liability. For trades that advise, design, or certify, like electricians signing COCs, engineers, surveyors, or anyone designing systems, it's essential.

If you only do installation and repair work to someone else's design, public liability usually covers you. If you're the one making decisions that affect how something should be built, get professional indemnity too.

Tool insurance

Your tools are often worth more than your van. A full set of pro-grade tools can easily run to R50,000, £5,000, or more. Tool insurance covers theft (usually from a locked van or premises), loss, and sometimes accidental damage.

Read the small print. Most policies only pay out if tools were stolen from a locked vehicle between specified hours, or from a locked premises. Leaving tools in an unlocked van overnight is a common reason for claims being denied. Specialist tool-only policies are often cheaper and more comprehensive than tacking tool cover onto a vehicle policy.

Vehicle insurance for work use

If you use a vehicle for work, standard personal car insurance will not cover you. You need commercial vehicle insurance or, at minimum, business use added to a personal policy. Driving to and from client sites counts as business use. Carrying tools and materials counts as business use. Hoping nobody notices until there's a claim is not a strategy.

Commercial vehicle policies typically cost 20 to 50 percent more than personal ones, but they're a fraction of what you'd pay out of pocket after an accident on a policy that wasn't valid. Declare business use honestly from the start.

Employer's liability

The moment you take on your first employee, apprentice, or sometimes even a regular sub-contractor, you need employer's liability insurance. It covers you if a worker is injured or becomes ill because of their work for you.

In the UK, employer's liability is legally compulsory and fines for not having it are severe. Similar requirements exist in most other countries. If you have staff, get this cover before their first day on the tools, not after. This includes family members you employ, even casually.

Income protection and personal accident

These cover your personal income if you get injured or ill and can't work. They're not legally required, but they matter more for tradespeople than for office workers because your income is entirely dependent on your physical ability to do the job. A broken wrist can mean three months with zero income.

Income protection pays a percentage of your income while you're unable to work. Personal accident is a lump sum for specific injuries. Pick one, or a combination, based on how long you could realistically last without income. Most tradies can't afford a month off. Two to three weeks of savings plus a policy is a sensible minimum.

What you probably don't need

Cyber insurance, business interruption for a single-operator trade, key person cover if you're the only person: these are the kind of add-ons brokers love to bundle but most sole tradies don't need. Don't pay for policies you won't use. Focus on the big four: public liability, vehicle, tools, and employer's liability if you have staff.

Typical total cost

• Sole trader plumber or electrician, no employees: roughly R1,500 to R4,000 / £500 to £1,500 / $800 to $2,500 / AUD 1,500 to AUD 4,000 per year combined
• Small team of 2 to 5 with employer's liability: significantly higher, depending on payroll and trade
• Specialist trades (gas, roofing, height work): higher premiums due to risk

How to actually buy it

Get quotes from at least three brokers. Specialist trade brokers often beat generalist ones because they understand the risks and won't overprice. Be honest about what you do, including any higher-risk work. Under-declaring to save on premiums is the fastest way to have a claim denied when you actually need it.

Review your cover every year. As your turnover grows, your public liability cover should grow with it. As your tool collection grows, so should your tool cover. Insurance is one of those things that quietly falls behind your actual business if you don't check it.

This guide is general information only. Insurance requirements and costs vary by country, region, and trade. Always get specific advice from a licensed broker for your situation. Once your cover is in place, save your insurance and registration details into one of the free quote templates so they appear on every quote, which is increasingly something commercial clients look for.

Pricing each job in a free quote calculator and sending a branded quote rounds out the professional picture. QuoteGenio gives you 5 free quotes a month, no card required.