Common questions

Buying direct generally means considering the products offered by one insurer. A broker may have access to products from multiple insurers and can help arrange cover, depending on their insurer panel and authorisations.

Check that the activities listed on your policy match the work you're doing now, that the limits meet what your clients and sites ask for, and whether anything has changed since you took it out, such as new staff, equipment, vehicles or a new type of contract. Insurance that fitted last year's jobs might not fit the job you just won.

No. Fahrenheit is not an insurance company and doesn't issue policies. We publish general information about business insurance and take quote requests. Submitting a quote request does not arrange insurance.

Limits of $10 million and $20 million are the most common in construction. The amount is usually set by the head contract, principal or site rather than chosen freely, and larger or higher-risk projects can ask for more. The insurance clause in the contract will state the figure.

Generally no. Public liability is designed for injury to other people and damage to their property. Damage to the project you are building, or to your own materials, is usually a contract works matter, and your own tools are usually covered under tools and equipment insurance.

It depends on how the policy is set up. Some policies cover your liability for work you subcontract, while insurers often expect subcontractors to hold their own public liability. Many head contractors collect a certificate of currency from each subcontractor before they start.

Generally you tell your insurer or broker as soon as possible, record what happened with photos and notes, avoid admitting fault, and keep receipts for any urgent repairs. The insurer will assess what happened against your policy terms, including your cover, exclusions and excess. Our claims guide walks through the steps in more detail.

Simple cover such as public liability for a common trade can often be quoted the same day once the insurer has the information it needs. Once a policy is in place, a certificate of currency is usually available quickly. More complicated work, like specialist sites or large contracts, can take longer because insurers ask more questions.

Usually your ABN and business name, what work you do, your postcode, roughly how many people work in the business, your annual turnover, any claims in the last five years, and details of any current insurance. If the quote is for a specific contract, have the insurance section of the contract handy.

In Australia brokers are usually paid a commission by the insurer, built into the premium. Some brokers also charge a broker fee, which must be disclosed to you before you buy. You can always ask how a broker is paid before going ahead.

A certificate of currency is a short document from an insurer or broker confirming a policy is active. It shows the insured business, the type of cover, the limit and the policy period. Builders, councils and commercial sites usually ask for one before you start work.

There is no single national law that makes public liability compulsory for every business. In practice many clients, builders, councils and sites require it, and some state licensing arrangements reference it. Check your licensing body and any contracts you sign.

It depends on the state and the licence class. Some building licensing schemes ask for evidence of liability insurance when you apply or renew, and others do not. Check the requirements with the building regulator in your state, and note that clients and principals commonly require cover regardless.

Workers compensation is compulsory once you employ workers, and the rules about who counts as a worker vary by state. Sole traders are generally not covered by workers compensation for their own injuries, which is why many look at personal accident and illness insurance.

Usually when the work changes: bigger or commercial jobs, contracts with specific insurance clauses, specialist sites such as mines or hospitals, subcontractors, more vehicles or plant, or work some insurers avoid. Those are the times to check that cover still matches the job.

Fahrenheit publishes plain-English information about business insurance for Australian trades, construction, transport and security businesses, and takes quote requests. It is operated by HEY WHAT'S NEXT PTY LTD (ABN 34 693 275 786) and is not an insurance company. We provide general information, not insurance advice. Submitting a quote request does not arrange insurance.