So, you’ve finally taken on your first apprentice. Good on you. It’s a big step—one that says you’re not just busy, you’re building something that’ll last. Maybe you’ve got a young bloke or woman starting next Monday, keen to learn the ropes. But a mate of mine, a sparky in Parramatta, called me last week in a panic. He’d hired his first apprentice, and two days in, the kid backed the ute into a customer’s brick fence. No damage to the ute, but the fence was cactus. My mate thought his existing policy would cover it. It didn’t. He ended up paying $4,500 out of pocket because he hadn’t updated his insurance.

Don’t let that be you. Hiring your first apprentice changes more than your workload and your tax situation. It changes your risk profile—and your insurance needs. Here’s what you need to know, straight from someone who’s been in the game for over 20 years and has seen blokes lose sleep over stuff that a simple phone call could have fixed.

Why Your Existing Policy Probably Isn’t Enough

Most tradies start out with a basic business insurance package: public liability, maybe some tool cover, and if you’re smart, income protection. But when you add an apprentice, the game changes. You’re no longer just responsible for your own mistakes. You’re responsible for theirs, too.

The “Vicarious Liability” Trap

Under Australian law, you’re legally liable for what your apprentice does on the job—even if you weren’t there. This is called vicarious liability. If your apprentice drops a hammer off a scaffold and it lands on a client’s car, you’re on the hook. Your public liability policy might cover that, but only if it’s set up for employees. Some basic policies exclude workers or only cover subcontractors. You need to check.

In 2026, the average public liability claim involving an apprentice in construction trades runs between $15,000 and $80,000, depending on the injury or damage. Without the right cover, you’re personally exposed. A standard public liability policy for a sole trader might cost $600–$1,200 a year. Once you add an apprentice, expect that to jump to $1,200–$2,800, depending on your trade and turnover. It’s not cheap, but it’s a hell of a lot cheaper than a claim.

Workers’ Compensation: It’s Not Optional

This is the big one. In every Australian state and territory, if you hire an apprentice—even a part-time one—you are legally required to hold a valid workers’ compensation insurance policy. This covers medical expenses, lost wages, and rehabilitation if your apprentice gets hurt on the job.

  • NSW: Managed by icare. Premiums are based on your industry classification and wages. For a first-year apprentice in a low-risk trade (say, painting), expect around $1,500–$2,500 per year. For high-risk trades like roofing or demolition, it can be $4,000–$8,000.
  • Victoria: WorkSafe Victoria sets the rates. In 2026, the average premium for a small building business is about 1.8%–3.5% of payroll. For a first-year apprentice on $30,000, that’s roughly $540–$1,050 per year.
  • Queensland: WorkCover Queensland. Premiums are calculated on your wages and industry risk. A plumber in Brisbane might pay 1.5%–2.5% of payroll. So for that same $30,000 apprentice, you’re looking at $450–$750.
  • Western Australia: WorkCover WA. Rates vary, but expect around 2%–4% of payroll for most trades.
  • South Australia: ReturnToWorkSA. Similar structure, roughly 1.5%–3% of wages.
  • Tasmania, ACT, NT: Each has its own scheme, but the principle is the same. You must have it before the apprentice starts work.

Don’t try to skip this. The penalties are steep—fines up to $100,000 in some states, and you can be personally sued if an uninsured worker gets hurt. I’ve seen blokes lose their house over this.

Updating Your Public Liability and Tool Cover

Once you’ve sorted workers’ comp, the next thing is your public liability and tool insurance. Your apprentice will be using your tools and working on your sites. That means your policies need to reflect the extra set of hands.

Public Liability: Covering Their Mistakes

As I mentioned, your public liability policy needs to specifically cover employees and apprentices. Most insurers will add this as a standard extension, but some budget policies exclude it. Ask your insurer: “Does my policy cover my apprentice’s actions?” If they hesitate, get a new policy.

In 2026, the minimum public liability cover most tradies carry is $10 million. If you’re working on commercial sites or for government contracts, you might need $20 million. Adding an apprentice doesn’t usually change the limit you need, but it does increase the risk. Expect a premium increase of 20%–40% when you add a worker.

Tool Insurance: The Apprentice Factor

Your apprentice will likely use your tools—or they might bring their own. Either way, you need to clarify who’s responsible. If your apprentice loses your $2,000 angle grinder, your tool insurance should cover it, but only if the policy covers tools used by employees. Some policies only cover tools in your personal possession.

If your apprentice brings their own tools, those aren’t covered under your policy. They need their own insurance, or you need a policy that covers tools on site regardless of ownership. This is less common, so check the fine print.

In 2026, tool insurance for a sole trader with $10,000–$20,000 in gear runs about $300–$600 per year. Adding an apprentice might bump that to $400–$800, depending on the value of tools they’ll use.

Income Protection and Accident Cover: Don’t Forget Yourself

When you hire an apprentice, your own income becomes more vulnerable. If you get injured and can’t work, you still have to pay your apprentice’s wages. Workers’ comp covers them, not you. So your own income protection insurance becomes even more critical.

What Happens If You’re Off the Tools?

If you’re a sole trader and you break your arm, you stop earning. But your apprentice still needs to be paid. If you’ve got income protection, it can cover your lost income while you recover. Some policies also include a “business expenses” benefit that covers ongoing costs like wages.

In 2026, income protection for a tradie earning $80,000–$120,000 per year typically costs $1,500–$3,500 annually, depending on the waiting period and benefit period. Adding an apprentice doesn’t directly increase this premium, but it makes the cover more important.

Personal Accident Cover for Your Apprentice

Workers’ comp covers your apprentice for work-related injuries, but what about injuries outside work? Some tradies offer personal accident cover as a benefit to attract good apprentices. This is optional, but it can be a selling point. It covers your apprentice if they’re injured playing footy or in a car accident and can’t work. Premiums are usually small—$200–$500 per year per apprentice.

Motor Vehicle and Plant Insurance: The Apprentice Driver

If your apprentice will drive your work ute or operate heavy plant, you need to update your motor vehicle and plant insurance. Let me tell you, apprentices and vehicles are a risky combination. I’ve seen more dings, scrapes, and reversed-into-drains than I can count.

Adding a Young Driver to Your Policy

If your apprentice is under 25, expect a significant premium increase. Young drivers are statistically more likely to have accidents. In 2026, adding a 19-year-old apprentice to a tradie’s commercial vehicle policy can increase the premium by 30%–60%. For a policy that costs $1,200 per year, that’s an extra $360–$720.

Some insurers will only cover drivers over 21 or 25. Check your policy. If your apprentice is under 21, you might need a specialist insurer or a policy that covers “any driver” with restrictions.

Plant and Equipment Cover

If your apprentice will operate machinery like an excavator, skid steer, or even a concrete saw, your plant insurance needs to cover them. Again, some policies exclude operators under a certain age or without specific tickets. In 2026, expect a 15%–25% increase on your plant premium when you add an apprentice operator.

State-Specific Rules You Need to Know

Each state has its own quirks when it comes to hiring an apprentice. Here’s a quick rundown of what’s different.

New South Wales

NSW has a mandatory apprenticeship training program. You must register your apprentice with Training Services NSW. For insurance, icare workers’ comp is non-negotiable. Also, if you’re in the building industry, you need to check if your public liability covers work on residential sites—some policies exclude it.

Victoria

Victoria’s apprentices are covered by WorkSafe. The state also has a “Construction Induction Card” requirement (the white card). Your apprentice needs one before they set foot on a site. If they don’t have one, and they get injured, your insurance might not cover them.

Queensland

Queensland has a strong focus on safety. Your apprentice needs a white card, and if they’re in construction, they need to complete a general safety induction. WorkCover Queensland premiums are based on your industry’s risk rating. For a first-year apprentice, the premium is usually lower than for a qualified worker because their wages are lower.

Western Australia

WA has a separate system for apprentices. You need to register with the Apprenticeship Office. Workers’ comp is through WorkCover WA. One quirk: WA’s workers’ comp premiums are calculated on a “declared wages” basis, so you need to estimate your apprentice’s wages for the year.

South Australia

SA uses ReturnToWorkSA. Premiums are based on your industry and wages. The state also has a “GTO” (Group Training Organisation) system that can help you share the risk. If you hire through a GTO, they handle the insurance, but you pay a fee.

Tasmania, ACT, NT

These territories follow similar rules. In Tasmania, WorkCover Tasmania sets the rates. In the ACT, it’s through the ACT Insurance Authority. In the NT, it’s Territory Insurance. All require workers’ comp. The premiums are generally lower because wages are lower, but don’t let that fool you—the risk is the same.

How to Shop for Insurance with an Apprentice

So, how do you actually get the right cover without getting ripped off? Here’s a step-by-step approach I’ve used for years.

  1. Start with your current insurer. Call them and say, “I’m hiring my first apprentice. What do I need to change?” They’ll usually give you a quote for the updated policies. This is the easiest route, but not always the cheapest.

  2. Get multiple quotes. Don’t just accept the first quote. Platforms like BizCover let you compare quotes from multiple insurers in one go. It’s quick, and you can see the range. In 2026, I’ve seen quotes for the same tradie vary by $800–$1,500 for the same cover.

  3. Check the fine print on “employees.” Some policies define “employee” narrowly. Make sure your apprentice is explicitly covered. Look for wording like “all persons employed under a contract of service” or “employees as defined by workers’ compensation legislation.”

  4. Ask about “apprentice” discounts. Some insurers offer a small discount for first-year apprentices because their wages are lower. It’s not huge—maybe 5%–10% on workers’ comp—but it’s worth asking.

  5. Bundle your policies. If you get public liability, tool cover, and workers’ comp from the same insurer, you’ll often get a multi-policy discount. In 2026, that can save you 10%–15% overall.

  6. Review annually. Your apprentice’s wages will increase each year. Your insurance premiums should reflect that. Don’t just let it auto-renew. Check the wages you declared and adjust them.

Common Mistakes Tradies Make

I’ve seen these mistakes cost blokes thousands. Avoid them.

  • Assuming workers’ comp covers everything. It only covers injury or illness caused by work. It doesn’t cover damage to property or third-party liability. That’s what public liability is for.
  • Not updating the policy when the apprentice starts driving. If your apprentice drives your ute to the hardware store and hits a car, your motor insurance needs to cover them. If it doesn’t, you’re paying for both repairs.
  • Hiring an apprentice without a white card. In most states, this is illegal for construction work. If they get injured, your workers’ comp might be voided.
  • Forgetting about “tool theft” while the apprentice has them. If your apprentice takes your tools home and they get stolen, your tool insurance might not cover it unless you have a “away from site” clause.
  • Not telling your insurer about the apprentice at all. This is the biggest one. If you have a claim and the insurer finds out you had an uninsured worker, they can deny the whole claim. You’re left holding the bag.

FAQ: Insurance for Your First Apprentice

Do I need workers’ comp for a part-time apprentice?

Yes. In every Australian state and territory, workers’ compensation is mandatory for any employee, including part-time and casual apprentices. There is no minimum hours threshold. If you pay them wages, you need cover.

How much does workers’ comp cost for a first-year apprentice?

It varies by state and trade, but for 2026, expect to pay between $450 and $2,500 per year for a first-year apprentice earning around $30,000. High-risk trades like roofing or demolition are at the higher end. You can get exact figures from your state’s workers’ comp authority.

Will my public liability insurance automatically cover my apprentice?

Not necessarily. Some policies automatically cover employees, but others exclude them unless you add them as a named insured. Always check your policy wording. If it says “the insured” without mentioning employees, you likely need an endorsement.

What happens if my apprentice gets hurt and I don’t have workers’ comp?

You face serious penalties. In most states, you can be fined up to $100,000 and personally liable for all medical costs and lost wages. In some cases, you can even face criminal charges. Don’t risk it.

Can my apprentice be covered under my tool insurance?

It depends on the policy. Many tool insurance policies cover tools in your custody, but if your apprentice is using them, you need to check if that’s considered “custody.” Some policies exclude tools used by anyone other than you. A better option is to get a policy that explicitly covers tools used by employees.

Do I need to insure my apprentice’s own tools?

No, your insurance doesn’t cover their personal property. Your apprentice needs their own tool insurance if they bring their own gear. You can recommend they get it, but you’re not legally required to provide it.

How do I find the best insurance for my situation?

Start with your current insurer, then compare. Platforms like BizCover let you see multiple quotes side by side. Also, talk to a broker who specialises in trade insurance. They can tailor a package for your specific trade and state.

What if my apprentice is under 18? Does that change anything?

Yes, in some states, you need additional permits or parental consent. For insurance, being under 18 doesn’t change the workers’ comp requirement, but it can affect your motor vehicle policy. Most insurers won’t cover a driver under 21 without a significant premium increase. Check before they get behind the wheel.

Final Word

Hiring your first apprentice is a great move. It means your business is growing, and you’re giving someone a start in the trade. But don’t let the excitement blind you to the risks. A few phone calls and a bit of paperwork now can save you thousands—and a whole lot of stress—later.

Get your workers’ comp sorted first. Then update your public liability, tool cover, and motor insurance. Check the fine print. And if you’re ever unsure, ask. Your insurer, your state authority, or a good broker can all help. The worst question is the one you don’t ask.

Now, go teach that apprentice how to do the job right. And make sure you’re covered if they don’t.