What Rising Construction Liability Costs Mean for Tradies

The latest review, based on data to December 2024, suggests that average written public liability premiums for general construction businesses underwritten by APRA-regulated insurers rose from about $3,000 in 2018 to more than $9,000 in 2024. Over the same period, the number of risks written fell from around 22,500 to 17,500. For tradies, that combination matters. It points not only to higher pricing, but also to tighter insurer appetite in parts of the construction sector.

This does not mean every carpenter, plumber, electrician, concreter or subcontractor will see the same outcome at renewal. Premiums are influenced by the type of work performed, turnover, claims history, use of subcontractors, height exposure, excavation, hot works, high-risk locations and the limits required under contracts. However, the broader trend reinforces why liability cover should not be treated as a set-and-forget business cost.

For self-employed tradies and small trade businesses, public liability insurance is often required before stepping onto a commercial site, joining a builder’s panel, or tendering for larger jobs. When premiums rise or cover becomes harder to place, the effect can flow directly into quoting, cash flow and job selection. A policy that was suitable two years ago may also no longer match the business if work has shifted into larger projects, higher-value sites or more complex subcontracting arrangements.

This is also an extension of the wider commercial insurance story we have been following: softer conditions in some areas do not automatically translate to easier renewals for construction trades. The market is uneven, and construction remains one of the sectors where affordability pressure is still visible.

The practical step for tradies is to prepare early. Before renewal, you may wish to check that your declared activities are accurate, gather details on risk controls, keep subcontractor records organised, and review whether your insured limits still meet contractual requirements. If your business has changed, explain how you manage safety and supervision rather than leaving insurers to make assumptions.

In a changing liability market, comparing suitable cover and speaking with experienced brokers can help tradies understand their options before renewal pressure arrives.