Public Liability Insurance is the most essential tool in your kit, but simply "having a policy" isn't enough. Many tradies discover too late that a simple oversight on-site or a misunderstanding of their paperwork has left them uninsured.

At National Corporate Broking, we see where the gaps happen. Here are five common mistakes tradies make with their liability cover and how to avoid them.

When you first took out your insurance, you might have been a "Carpenter." But if you’ve recently started doing roof plumbing or minor electrical work without updating your broker, you are in a danger zone.

Insurers calculate risk based on your specific trade. If a claim arises from an activity not listed in your Business Description, the insurer may be entitled to deny the claim entirely.

The Fix: Every time you expand your services or take on a radically different type of contract, give your broker a call to ensure your policy reflects what you actually do.

This is one of the most expensive myths in the industry. Many head contractors believe that their Public Liability policy automatically covers any "subbies" they hire.

In most cases, it does not. If your sub-contractor causes property damage or injury, the victim will likely sue both the subbie and you. If that sub-contractor doesn't have their own insurance, you could be left holding the bill for their negligence.

The Fix: Always request a "Certificate of Currency" from every sub-contractor before they set foot on your site. Keep these on file and ensure they are renewed annually.

Standard Public Liability insurance is designed to cover damage to other people's property. However, most policies have a strict limit (often as low as $100,000 or $250,000) for damage to property that is currently in your Care, Custody, or Control.

If you are working on a high-end kitchen renovation in Richmond and you accidentally cause a fire that destroys the client's $50,000 custom cabinetry while you are installing it, you need to ensure your "Care, Custody, and Control" extension is high enough to cover the loss.

The Fix: Review your policy limits for "Property in your Care" to ensure they match the value of the assets you handle daily.

Before you sign that big contract for a commercial site or a government project in Sydney, look for the Indemnity Clause. Some contracts require you to "hold harmless" the principal contractor for their mistakes, not just yours.

Many standard insurance policies will not cover "Contractual Liability" if you have signed away your rights or taken on more responsibility than the law requires.

The Fix: Have your broker review the insurance requirements of a contract before you sign it. We can tell you if your current policy meets the requirements or if you need a "Contractual Liability" extension.

You might think that if no one was hurt and the damage was minor, there’s no need to tell the insurer. However, most policies require you to notify them of any incident that could lead to a claim.

If a homeowner mentions a "sore back" after tripping over your lead, but doesn't sue until six months later, the insurer may decline the claim because you didn't report the incident when it happened.

The Fix: Document every incident. Take photos, get witness details, and notify your broker immediately—even if you don't think a claim is coming.

At National Corporate Broking, we understand that you’d rather be on the tools than reading insurance fine print. We specialise in tailored insurance for plumbers, electricians, builders, and landscapers across Greater Sydney - Penrith, Hawkesbury, Parramatta, Blacktown. Campbelltown, Liverpool, North Sydney and everywhere in between.

Don't wait for a site accident to find out you're not covered. Let our expert brokers review your current policy and ensure your livelihood is protected.