There are a lot of factors to consider when it comes to calculating a Public Liability insurance premium for handyman businesses, with no two businesses the same. Every handyman business is unique, taking on a variety of jobs exposed to different risks. Let’s dive deeper and start by looking at what factors affect the pricing of a Public Liability insurance policy.


What are some of the factors that affect policy pricing?

When purchasing an insurance policy there are some key questions the insurance provider will ask to get a better understanding of the nature of the business and the type of risks it may be exposed to. The top three areas that insurers will need to know about include, the size of your business, the level of cover you select and the type of industry/occupation your business operates in. These questions help to determine the cost of the policy.


Size of your business

You may be a one-man band or a hoard with hammers, the size of your business and the amount of revenue your business makes can affect the price of your policy.

Did you know the more employees you have, the higher the chance for things to go wrong? It heightens the potential for someone to cause an accident like bodily injury to a client or member of the public or even damage to their property.

Insurers will focus on the numbers of employees a trades or service-based business has compared to office-based business where revenue has a larger impact on the pricing of a policy.

If you’re a sole trader, you will be happy to know that you are considered a lower risk compared to businesses with more employees. Sole traders typically pay around $67 per month for their Public Liability policy according to our data for business owners in the trades and services industry.

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Level of cover

As many of us experience in life, the more you purchase of a product or service, the more it ends up costing. Fortunately, when it comes to Public Liability insurance this isn’t the case, where double the cover doesn’t mean double the premium.

Within our trades and services industry customer database, the most common level of cover is $10 million, with options to purchase a policy for $5million and even as high as $20 million in cover. For a Public Liability policy with a $10 million level of cover, customers are approximately paying $68 per month.

When considering which level of cover you need for your handyman business, look at the circumstances like the type of risks your business is exposed to, the minimum level of cover required on certain contracts or any other industry requirements your handyman business may have.


Type of business

The trades and services industry is full of different categories and occupations, each having their own levels of risk. The nature of your occupation has a significant influence on your premium, with the riskier the nature of your business, the higher premium, and vice versa.

Not every insurance provider assesses risks the same, while one insurer might consider a particular profession as high risk, another may not consider it as risky. The common reason for this is due to the number of claims each insurance provider receives for that particular occupation.

Let’s take a look at the average monthly premium by category within the trades and services industry:

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The average costs of Public Liability insurance for trades and services businesses

Now that we have looked at the specific factors that are assessed when calculating a Public Liability insurance policy, let’s look at the breakdown of industry-specific average premium prices within the trades and services industry.

How much does Public Liability cost as an average monthly premium?

Trades and services business owners typically pay around $71.70 per month for Public Liability insurance. Our analysis shows that 27.1% of handymen pay less than $55 per month and 58% pay between $56-85 per month for their Public Liability insurance.

The average cost by state/territory

The location of your business within Australia can also have an effect on the pricing of your premium. Below is an overview of the average premium cost by state/territory.

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Getting cover

The best way to get an accurate price of your Public Liability insurance policy is to receive a quote based on your business’ unique factors. In a few clicks or a phone call, one of our insurance specialists can provide multiple quotes from Australia’s top insurers for you to select from.
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