The short answer
business.gov.au says public liability insurance covers you if someone dies, gets injured or has property damaged because of your negligence. The NSW Government warns that if a builder or tradesperson does not have it, the homeowner could be liable because they own the property, so customers often ask to see your certificate.
General information read in full from government pages on 12 November 2026, not insurance advice. Ask a broker about the cover and limits you need.
What it covers
business.gov.au says it covers you if someone dies, gets injured or has property damaged because of your negligence, and it can also extend to emotional distress or another business losing expected revenue because of your negligence.
Why customers ask
The NSW Government tells homeowners that if the builder or tradesperson does not have this type of insurance, you could be liable because you own the property. That is why more customers ask for a certificate before they let anyone start.
Sole traders and workers compensation
business.gov.au says that if you are a sole trader, workers compensation insurance does not cover you, and it advises sole traders to get their own personal death, illness and disability insurance. This is a different product from public liability.
Make it easy to show
Keep a PDF of your certificate ready to send, and put your insurer and policy period on quotes.
Common questions
Do tradies need public liability insurance?
Some states require it for certain occupations, and customers often expect it. Check your state regulator and ask a broker.
Does workers compensation cover a sole trader?
business.gov.au says it does not. Ask about personal injury cover.
Sources
- business.gov.au: types of business insurance, checked 12 November 2026
- NSW Government: insurance requirements for contractors, checked 12 November 2026