Builders insurance can vary widely in price depending on the type of work you do, the size of your projects, and the risks you face on-site. Because no two building businesses are the same, understanding the typical cost ranges and the factors that influence them is essential before choosing the right policy.

Below, we break down the average costs, what affects your premium, and how Morgan Insurance Brokers helps builders secure competitive, tailored insurance for builders.

What Types of Insurance Do Builders Usually Need?

Builders generally require several core types of insurance, each priced differently:

• Public Liability Insurance

Protects against third-party injuries or property damage caused by your work.

• Contract Works Insurance

Covers accidental damage to the building project during construction.

• Tools & Equipment Insurance

Protects your tools and gear from theft or damage.

• Plant & Machinery Insurance

Covers machinery such as excavators, bobcats, trailers and other heavy equipment.

• Commercial Vehicle or Ute Insurance

Covers vehicles used for work.

Depending on your business, you may also need Professional Indemnity, business insurance, or builders warranty (depending on location and project type).

How Much Does Builders Insurance Cost?

While prices vary, here are general cost indicators for builders in Australia:

Public Liability Insurance

Public Liability Insurance can cost from around $700 to $2,500 per year, depending on your turnover, project types, and required limit ($5M, $10M, or $20M).

Contract Works Insurance

Pricing varies significantly because it depends on project value.
Typical contract works insurance ranges from $1,000 to over $10,000, depending on whether you insure single projects or take out annual cover.

Tools & Equipment Insurance

Usually $300 to $900 per year, depending on tool value and security measures.

Plant & Machinery Insurance

Pricing depends on the machinery value.
Small items: from $400 annually
Larger equipment: can range into the thousands.

Commercial Vehicle Insurance

Typically $900 to $2,500 per vehicle, based on usage, location and vehicle type.

What Affects the Cost of Builders Insurance?

Several factors influence your premium:

• Type of building work you perform

High-risk trades or structural work generally cost more.

• Annual turnover

Higher turnover usually means higher exposure.

• Project size and contract values

Larger or more complex builds have higher risks.

• Location of work

Certain areas may have higher theft, weather or liability risks.

• Claims history

A clean history often results in better pricing.

• Required cover limits

Higher liability limits (e.g., $20M) increase premiums.

Because every building business is different, personalised quotes are essential for accurate pricing.

How Morgan Insurance Brokers Helps Builders Save Money

Morgan Insurance Brokers specialises in helping builders understand their risks and secure policies that suit their business needs and budget. By assessing the type of projects you work on, the equipment you use, and the risks you face, we ensure your insurance is correctly structured without unnecessary extras.

We handle the entire process, from reviewing your current cover, identifying gaps, explaining what you actually need (in plain language), and securing competitive premiums. If something goes wrong, we also assist with claims, helping you get the best possible outcome quickly and stress-free.

Why Builders Shouldn’t Choose Insurance Based on Price Alone

Cheapest doesn’t always mean best. Builders rely on insurance to protect:

• The property under construction
• Their tools and machinery
• Their business reputation
• Their legal liability
• Their ability to keep working

Inadequate cover can end up costing far more than the premium saved.

Morgan Insurance Brokers are construction insurance specialists and will ensure your policy actually protects you where it matters.

Get a Builders Insurance Quote

If you’re a builder in Australia looking for competitive, tailored insurance, Morgan Insurance Brokers can help.

Get a fast builders insurance quote today and protect your next project with confidence.