Tradie Insurance FAQs

Public liability insurance is not legally mandatory, but it is practically required. Most councils require proof of public liability before issuing building consents, and most contracts require valid insurance. Without it, you cannot realistically work as a professional tradie.

Costs vary significantly by trade, business size, and location. Typical range: sole traders NZ$60–150/month, small businesses NZ$150–300/month, larger businesses NZ$300–500+/month. Get quotes from multiple providers to compare costs for your specific situation.

Public liability covers third-party injury and property damage caused by your work. Tools insurance covers damage to or theft of your own tools and equipment. Most tradies need both.

ACC covers accidental injuries but not illness. If you get seriously ill, ACC won't pay anything. Income protection insurance covers both illness and injury, filling the gap ACC leaves.

No. Personal car insurance explicitly excludes commercial use. If you use your car for work and have an accident, your insurer can refuse to pay. You need commercial vehicle insurance for work use.

Typically hand tools, power tools, specialist equipment, ladders, and safety equipment. High-value items like drain cameras or test equipment should be specifically listed. Confirm your tools are covered before relying on the policy.

Minimum NZ$1 million for residential work, NZ$2–5 million for commercial work. Most councils require minimum NZ$1 million; commercial clients often require NZ$5 million or higher. Assess your risk exposure and choose appropriate limits.

You become personally liable for all costs—medical expenses, lost income, pain and suffering damages, legal fees. A single serious incident could bankrupt you. Insurance is essential protection.

Many online providers provide instant quotes (5–10 minutes). Phone quotes may take a few hours to a day. Broker quotes may take 2–3 days. Discuss timelines when requesting quotes.

Yes. Increase your excess (higher out-of-pocket cost, lower premium), bundle multiple policies, demonstrate good safety practices, maintain a claims-free history, and shop around every 2–3 years. You might find significant savings.

NZ$5m is the maximum your insurer will pay for any single claim or period. A small incident might be covered fully under NZ$1m, but a major injury or significant property damage could exceed NZ$1m. Commercial work typically requires NZ$5m.

Yes. Being a sole trader doesn't reduce your liability risk. You're still personally responsible for incidents, and a single claim could destroy your business. Insurance is essential regardless of business size.

Statutory liability covers WorkSafe fines and penalties for health and safety breaches. If WorkSafe investigates an incident and fines you, statutory liability covers the cost of fines and legal defence. Essential if you work on building sites or with employees.

At least annually. As your business grows, risks change, and coverage may become inadequate. Review coverage annually and shop around every 2–3 years to ensure competitive pricing.

Income protection replaces income if you can't work due to illness or injury. Essential for self-employed tradies without sick pay. If you can't work for months due to illness, income protection covers living and business expenses while you recover.