Reviewed by licensed advisers at Smiths Insurance & KiwiSaver (FSP712931) · Updated 11 November 2026

Tradie Insurance NZ: The Covers You Need Before Your First Job

Most New Zealand tradies need public liability, insurance for tools and the work vehicle, and a certificate of currency to show clients. Builders add contract works cover, and anyone with staff should talk to an adviser about statutory liability. ACC covers accidents, not illness, so income protection is the personal piece of the package.

In short

No contract yet? Start with three: public liability, tools, and the work vehicle. Add contract works or statutory liability when the job needs them.
Clients and main contractors often ask for a certificate of currency before you start, so sort public liability first.
The covers that protect your income sit outside the business policies: ACC, and private income protection for what ACC does not pay.

The package, cover by cover

Think of it as five questions about the business, then a sixth about you. Each cover answers one.

Cover	The question it answers	Who usually needs it
Public liability	Who pays if my work damages a client's property or injures a member of the public?	Almost every trade
Tools and equipment	What if the van is broken into and the tools are gone?	Anyone carrying tools between sites
Business vehicle	What if the ute or van is written off?	Anyone using a vehicle for work
Contract works	Who pays if the build is damaged before handover?	Builders and carpenters, and some larger fit-outs
Statutory liability	Who covers defence costs if a regulator investigates?	Businesses with staff or subcontractors
Income protection	How do the bills get paid if I cannot work?	Every sole trader

Starting solo with no big contract yet, you need three things in place first: public liability, cover for the tools in the van, and business cover on the van itself. The rest depends on the jobs you take.

The first commercial client changes things. A property manager or main contractor will ask for proof of public liability before you get a purchase order. Ask what limit they want before you quote, and arrange cover before the quote goes out, not after.

Price depends on your trade, turnover, tool value and claims history (see what business insurance costs), so an adviser needs a short call first. There is no instant online price.

Which covers, by trade

The mix shifts with the work. This is a guide to what is common, not a prescription. An adviser checks it against your contracts.

Trade	Commonly needed	Why
Electrical (electrician guide)	Public liability, tools, vehicle	Work inside walls and ceilings is hidden, and a fault can surface months later as damage to a client's property
Plumbing and gas (plumber guide)	Public liability, tools, vehicle	A failed joint or a leak behind a wall can damage a building long after you have left
Building and carpentry (builders, carpenters)	Public liability, contract works, tools, vehicle	The build is exposed to weather, theft and accidents before handover, and contracts often set minimum limits
Painting (painter guide)	Public liability, tools, vehicle	Drips, overspray and accidental damage to floors and fittings are everyday risks
Landscaping (landscaper guide)	Public liability, tools and plant, vehicle	Digging near services, heavy machinery and expensive mowers and trailers
Roofing (roofer guide)	Public liability, tools, vehicle	Work at height, hot work and water getting in after you leave are the usual claim and exclusion questions
Mechanics and workshops (mechanic guide)	Liability, customer vehicles in your care, tools	Other people's cars are in your bays, and many liability wordings treat them separately

Two things apply to every row. First, if you employ anyone or use subcontractors, read the statutory liability page. Second, if you give design or specification advice, such as an electrician specifying a lighting system, ask about professional indemnity.

Public liability and the certificate

Public liability pays when your work causes injury to someone else or damage to their property. A plumber's leak that ruins a client's flooring is the textbook claim.

In NZ the claims skew towards property damage. The Accident Compensation Act 2001, s 317 bars most claims for compensatory damages for personal injury, because ACC pays instead. Legal costs and some exemplary damages can still arise.

Limits are set by contract, not by the law. A sparky might be asked by a main contractor for a $5m certificate on a commercial site, when his policy carried $2m. Read the contract's insurance clause before you quote, because the limit asked for changes what you can bid for.

Your insurer or adviser issues a certificate of currency, a one-page proof that the policy is in force, the limit, and the dates. Clients usually ask for it at tender, again at site induction, and again every renewal. Keep it in your phone. For the contract wording main contractors lean on, see NZS 3910 insurance requirements.

Tools and vehicle

Tools are your income. Theft from vans and utes is the usual loss, and many policies set conditions on how tools are stored when the vehicle is unattended, so read them. A tool policy can be a separate cover or an add-on, and a limit for tools in transit differs from tools on a site. See tool insurance.

The vehicle needs business vehicle cover, not a private car policy. If the van is signwritten, carries ladders or racking, or you drive it to site every day, say so when you arrange cover. Many policies treat work use differently from private use.

Contract works, if you build

Contract works covers the project itself while it is being built: storm damage to a half-framed house, theft of materials, or a fire before handover. It matters most when you are the party carrying the risk under the contract. Contract works insurance explains who normally arranges it.

Staff, subcontractors and statutory liability

Once you take on an apprentice or a labourer, the business becomes an employer, with duties under the Health and Safety at Work Act 2015. Statutory liability can pay defence costs when a regulator prosecutes under some Acts.

It cannot pay a health and safety fine. Section 29 of the Act makes any cover for fines under that Act of no effect. Nobody can sell you that cover, and be wary of anyone who says they can.

The personal side: ACC and income protection

ACC covers injury, not illness. A self-employed tradie on standard cover is paid up to 80% of income on an accident claim, after a seven-day waiting period, and it is calculated from past earnings. For a newly self-employed plumber, that history may be thin.

CoverPlus Extra lets you agree an amount in advance, which suits new or seasonal earners. Our page on ACC for contractors sets out how it works. Illness, a bad back that is not an accident, or a heart condition, is not covered by ACC at all. That gap is what income protection for tradies is for.

If you run the business with a partner, or the business depends on one skilled person, the life-insurance side lives on our business protection page. For the wider picture, see the business insurance hub and insurance for contractors.

Licensing and insurance are separate

Licensing decides who may do the work. Insurance decides who pays when it goes wrong. The Plumbers, Gasfitters and Drainlayers Board administers licensing for plumbers, gasfitters and drainlayers, and publishes cases of people fined for doing the work unlicensed. A standard licence carries no insurance condition, but a self-certification endorsement does. Electricians and building practitioners are covered by separate regimes. Insurers may ask about your licence at application, so keep the details to hand.

How we help

A Smiths adviser will phone you to talk through which covers to look at. Some business covers we refer to another licensed Financial Advice Provider, and we will tell you who, and how they are paid, before your details go to that firm. There is no instant online quote. There is no cost to talk it through. Smiths Insurance & KiwiSaver may receive a commission or referral payment if you buy. Cover and price depend on insurer underwriting and the policy wording. Financial advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931).

For one trade in detail, see the guides for electricians, plumbers, painters, landscapers.

Frequently Asked Questions

Is tradie insurance compulsory in NZ?

Public liability is not required by law. In practice clients and main contractors often require it in the contract. ACC levies are compulsory for self-employed people under the Accident Compensation Act 2001, and they are not insurance in the private sense.

Does public liability cover my own tools?

No. Public liability covers harm to other people and their property. Your tools need their own cover.

Do I need insurance if I work for one main contractor?

Often yes. Many contractors require subcontractors to hold public liability and show a certificate of currency before starting. Check your subcontract.

Does my private car policy cover the work van?

Usually not for business use. Tell the adviser how the vehicle is used so the cover matches.

Can I insure against a WorkSafe fine?

No. Fines under the Health and Safety at Work Act 2015 cannot be insured. Statutory liability can respond to defence costs.

References

Read the full insurance guides

Tell us how the business trades and a Smiths adviser will phone you to talk through which covers to look at. Check what cover you need. No cost to talk it through.