When most tradies think about insurance, public liability is the first thing that comes to mind. It covers you if someone is injured or property is damaged because of your work. But what about professional indemnity (PI) insurance — do tradies really need it?

The answer depends on the type of work you do, how you run your business, and whether you give advice or design as part of your service.

1. Tradies Who Do Design Work

If you create or modify designs, drawings, or specifications, you’re providing a professional service — and that brings a risk of professional negligence claims.

For example:

• Electricians who design wiring layouts.
• Plumbers who draft hydraulic designs.
• Builders or carpenters who provide structural drawings or custom design advice.

If an error in your design causes financial loss or a safety issue, you could be sued for negligence — even if the physical work was done correctly. That’s where Professional Indemnity insurance protects you.

2. Tradies Who Subcontract Design Work

Even if you outsource the design to an engineer, architect, or draftsperson, you may still be vicariously liable for their work.

That means if your subcontractor makes a mistake and your client suffers a loss, the claim could still land on your desk, especially if you’re the principal contractor or project manager.

In this case, having your own PI policy — or a Design & Construct (D&C) policy — ensures you’re covered for both your advice and any subcontracted design work.

3. Tradies Who Don’t Do Design or Advice Work

If you purely follow plans and don’t give design input or professional advice, you may not need a full professional indemnity policy.

However, you should still think about:

• Whether you review or interpret designs for clients (which could count as advice).
• Whether you sign off or approve work designed by others.
• Whether you recommend materials or methods that could later cause a loss.

Even small advisory elements can expose you to liability so it’s worth checking with your broker.

4. Standard PI vs Design & Construct Policies

There’s a key difference between standard professional indemnity and design & construct (D&C) policies:

Policy Type	Covers	Best For
Standard PI	Professional advice, consultancy, or design work (without physical construction).	Consultants, engineers, architects.
Design & Construct PI	Design, advice, and physical construction — including subcontracted design work.	Builders, electricians, plumbers, and tradies involved in both design and build.

If you manage or coordinate both design and construction, a D&C PI policy offers broader protection.

5. Other Times Tradies Might Need PI Cover

You may also need Professional Indemnity insurance if you:

• Provide technical advice or recommendations to clients.
• Work on government or commercial contracts that require it.
• Operate as a licensed builder or project manager responsible for overall design compliance.
• Use AI-driven tools or digital design software, errors in automated designs could still trigger liability.

6. The Core Insurances Every Tradie Should Definitely Have

Even if you don’t do design work, there are several essential insurances every tradie in Australia should have to protect themselves, their tools, and their livelihood:

Public Liability Insurance

Public Liability Insurance Protects you if your work causes injury or property damage to others. This is the most common and often required by law or contract before stepping on site.

Tools and Equipment Insurance

Covers theft, loss, or damage to your tools — whether they’re in your ute, at home, or on-site. Essential for keeping your business running after an unexpected loss.

Commercial Vehicle Insurance

Covers your work vehicles for accidents, theft, or damage and can also include cover for tools and equipment kept inside.

Personal Accident & Illness Insurance

If you’re self-employed, you don’t get sick leave. This policy provides income protection if you’re injured or too sick to work.

Workers Compensation Insurance

A legal requirement if you employ staff. It covers medical expenses and wages if a worker is injured on the job.

Contract Works Insurance

Covers damage to works in progress, materials, and temporary structures during construction. Ideal for builders, carpenters, and subcontractors.

Final Thoughts

Professional Indemnity insurance isn’t just for white-collar consultants, it’s an important layer of protection for modern tradies who offer design, advice, or project oversight.

Even if you think “it’s not my design,” liability can still follow the person holding the contract.

So, before your next project, speak with Morgan Insurance Brokers about whether a Design & Construct PI policy is right for your trade.