Is public liability insurance legally required for tradespeople in Australia?

Not universally by law for every trade, though many licensing schemes require it as a condition of licence, and most commercial and strata work requires it contractually. In practice, an established business will have it and producing the certificate is routine.

What is home warranty insurance and who takes it out?

It protects you if the builder dies, disappears or becomes insolvent before completing, and in some circumstances covers defects afterwards. The builder takes it out in your name before work starts. It is generally mandatory above a contract value set by each state — confirm the current threshold with your state regulator.

What if a tradesperson refuses to show their insurance?

Treat it as an answer. A business with current cover produces the certificate without friction because it is asked constantly. Reluctance usually means the policy has lapsed, and that is exactly the situation the question exists to detect.

Does your tradie need insurance?

Short answer

Public liability covers damage the tradesperson causes to your property or injury to other people. Workers compensation covers their own workers. Home warranty or domestic building insurance protects you if a builder dies, disappears or becomes insolvent before finishing, and is usually mandatory above a state-set contract value. Ask for the certificate of currency — an insurer will confirm a policy is current if you ring them.

Insurance is the question people skip because it feels intrusive. It is the one that matters most when something goes badly wrong, and asking is entirely normal.

The three that matter, and what each actually covers

Cover	Who it protects	When it matters
Public liability	You and third parties	They flood your bathroom, drop something through a window, or injure a visitor
Workers compensation	Their workers	Someone working on your property is injured — without it, exposure can reach you
Home warranty / domestic building	You	The builder dies, disappears or becomes insolvent before finishing

Home warranty insurance is the one with a legal threshold

Most states require domestic building work above a set contract value to carry home warranty or domestic building insurance, taken out by the builder in your name before work starts. The threshold and the scheme name vary by state. Confirm the current figure with your state regulator — and confirm the policy exists before you pay a deposit, because it is precisely the situation where the builder has stopped answering that it is designed for.

How to actually verify a policy

Ask for a certificate of currency. It names the insurer, the policy number, the cover amount and the expiry date.
Check the expiry date. An expired certificate is the most common thing this check turns up.
Check the insured entity matches the entity on your quote. A policy in the name of a related company does not necessarily cover the one you contracted with.
Check the cover amount is sensible for the job. Cover well below the value of what could go wrong is cover in name only.
If it matters, ring the insurer and confirm the policy is current. They will tell you.

For smaller jobs

Nobody is suggesting a certificate of currency for a leaking tap. The proportionate rule: if the worst realistic outcome is expensive — anything involving water, gas, electricity, heights or structure — ask. If the worst realistic outcome is a wasted afternoon, do not bother.

Common questions

Is public liability insurance legally required for tradespeople in Australia?: Not universally by law for every trade, though many licensing schemes require it as a condition of licence, and most commercial and strata work requires it contractually. In practice, an established business will have it and producing the certificate is routine.
What is home warranty insurance and who takes it out?: It protects you if the builder dies, disappears or becomes insolvent before completing, and in some circumstances covers defects afterwards. The builder takes it out in your name before work starts. It is generally mandatory above a contract value set by each state — confirm the current threshold with your state regulator.
What if a tradesperson refuses to show their insurance?: Treat it as an answer. A business with current cover produces the certificate without friction because it is asked constantly. Reluctance usually means the policy has lapsed, and that is exactly the situation the question exists to detect.

Does your tradesperson need insurance, and how do you check?