What Is Public Liability Insurance?
Public liability insurance protects tradespeople and their business against claims for compensation when their work causes injury to a person or damage to someone else’s property. For example, if a plumber accidentally floods a neighbour’s property, or a painter’s ladder falls and injures a passer-by, public liability insurance covers the legal costs and any compensation payable.
Why It Matters for Homeowners
If a tradesperson working on your property causes damage or injury and does not have public liability insurance, you could be drawn into costly legal disputes. While public liability insurance is not always a legal requirement for tradespeople, it is considered an industry standard and most reputable tradies carry cover of at least $5 million to $20 million.
Key things to check:
- Certificate of currency — ask your tradie for a current certificate before work begins
- Coverage amount — $10 million to $20 million is standard for most trades
- Scope of cover — ensure the policy covers the type of work being performed on your property
- Expiry date — confirm the policy is current and will remain in force for the duration of the project
When It Is Required
| Scenario | Typically Required? |
|---|---|
| Licensed builder (residential) | Yes — often a licensing condition |
| Subcontractor on a building site | Yes — head contractor usually requires it |
| Sole trader doing small jobs | Not legally required in most states, but strongly recommended |
| Government or commercial contracts | Always required |
How It Relates to Licence Verification
While TradieVerify verifies licence status rather than insurance directly, a valid licence is a strong indicator that a tradesperson meets the minimum requirements of their registering body — which often includes holding public liability insurance. Verifying a licence is your first step; asking for a certificate of currency is the second.