For NZ trade businesses choosing what insurance to explore, this guide helps you compare common cover types with your work and contracts. Start at the insurance decision centre to choose a topic, then read the public liability guide for more detail.
This guide is general information for NZ trade businesses, not financial or insurance advice. Cover, limits and exclusions vary between insurers - always read the policy wording and consider talking to a licensed insurance broker or financial adviser before you buy.
Do tradies legally need insurance in NZ?
Insurance requirements vary by activity, contract and applicable rules. Two practical points to check are:
- ACC and business insurance are separate. ACC provides injury-related cover under New Zealand's no-fault scheme. A business may separately review cover for property, tools or work in progress and check the relevant policy wording.
- Contracts may set insurance requirements. Some clients or contracts may ask for evidence of public liability cover, and building contracts may address work in progress. Requirements and limits vary, so check the contract before accepting a job.
You also have duties under the Health and Safety at Work Act 2015. Insurance does not replace safety practices. WorkSafe explains that insurance cannot pay fines or infringement fees imposed under HSWA. Some policies may cover defence costs depending on policy wording; check the terms.
The main types of tradie insurance
| Cover | What it may cover | When it may be relevant |
|---|---|---|
| Public liability | Certain third-party injury or property-damage claims, subject to terms | A common cover to compare across trades |
| Contract works | Work in progress, subject to policy terms | Builders or renovators reviewing responsibility under their contracts |
| Tools of trade | Listed tools and gear, subject to limits and exclusions | Businesses with valuable tools or equipment |
| Commercial vehicle | A work vehicle, subject to the policy | Businesses using a vehicle for work |
| Statutory liability | May cover some legal defence costs, depending on policy wording; cannot pay HSWA fines or infringement fees | Businesses reviewing their activities and policy terms |
| Income protection | Income support after illness or injury, subject to eligibility and terms | Sole traders reviewing how they would manage an interruption |
| Professional indemnity | Certain claims linked to professional services, subject to wording | Trades providing design, advice or certification |
Where to start
- Public liability is a common starting point to compare because some clients ask for it and it may respond to certain claims, subject to wording. See our public liability insurance NZ guide.
- Contract works may be relevant when building or renovating; check who is responsible for work in progress and what the policy wording includes. See contract works insurance NZ.
- Tools of trade may respond to theft or damage to listed gear, subject to limits and exclusions. See tool insurance NZ.
- Builders may want to compare a combination of covers - see builders insurance NZ.
Insurance by trade
Risks and contracts differ by trade, so the cover questions to explore may differ. These guides discuss common considerations:
- Electrician insurance NZ - including questions about liability and faulty-workmanship wording
- Plumber insurance NZ - questions plumbers and gasfitters may want to consider
- Painter insurance NZ - overspray, surface damage and the policies that cover them
Working solo? See public liability insurance for sole traders, and if you design, certify or give advice, professional indemnity insurance NZ for another type of cover to research; compare policy wording.
How much does tradie insurance cost?
It depends on your trade, turnover, cover limits and claims history, so treat any figure as indicative. As a rough guide, a sole-trader public liability policy often runs from a few hundred dollars a year, while a full package with contract works and higher limits costs more. Price alone does not show how a policy may respond; compare wording, limits, exclusions and excesses.
How to get the right cover (and a fair price)
Insurance is easy to over- or under-buy. A few practical steps:
- Get two or three quotes. Premiums and exclusions vary a lot between insurers for the same trade. Compare like-for-like cover, not just price.
- Use a broker for anything complex. A licensed insurance broker can match cover to your trade and contracts - useful once you're running jobs with contract works or higher liability limits. A broker may be paid by an insurer; ask how their services are remunerated.
- Read the exclusions and the excess. Exclusions, limits and the excess affect how a policy may respond. Check the excess (what you pay per claim) and any per-item limits.
- Match cover to your contracts. If a client or contract specifies a limit, check that any policy you consider meets it before work starts.
Sorting cover is one half of protecting your cashflow; getting paid on time is the other. See managing cashflow as a tradie for the income side of the equation.
Frequently asked questions
Is public liability insurance compulsory for tradies in NZ?
Public liability is not a universal legal requirement for trades. Some clients and contracts require it before work starts, so check the terms for each job.
Does ACC mean I don't need business insurance?
ACC and business insurance address different risks. Consider separately whether your work, property, tools or vehicle need cover, and check the relevant terms.
What insurance does a self-employed tradie actually need?
The covers to compare depend on the work, contracts, tools and vehicles involved. Some self-employed tradies also review how they would manage an interruption to income.
Can I get one policy that covers everything?
Some insurers offer packages that combine covers such as public liability, tools or contract works. Compare their limits, exclusions and total cost with separate policies against the business needs.
Is there a tradie insurance pack, or do I buy each cover separately?
Some NZ insurers offer business packages combining covers such as public liability, tools or contract works. Compare the limits, exclusions and total cost with separate policies to see what fits the business. 'Trades insurance' and 'insurance for tradesmen' refer to the same thing.
Sources
- business.govt.nz - business insurance
- Insurance Council of New Zealand (ICNZ)
- Consumer NZ - insurance
- WorkSafe NZ - Health and Safety at Work Act 2015
- WorkSafe NZ - HSWA s 29
- ACC - cover for businesses
Update log
- 24 June 2026 - Published. General information reviewed against New Zealand industry and government sources (see Sources above).
Last reviewed: 24 June 2026.