So you’ve been doing this trade long enough to have a solid reputation. People know you do good work. Now the neighbour’s mate wants you to tile his bathroom on the weekend. Or the local café asks if you can knock up some shelves after hours. It’s cash in your pocket, a bit of extra work, and you’re just helping people out. No dramas, right?
Hang on. What happens if you drop a tile through their window? Or that shelf pulls out of the wall because the plaster was dodgy? Or worse, someone trips over your gear and breaks an arm? If you’re thinking your main trade insurance covers you for that Saturday job, you might be in for a rude shock. I’ve seen blokes lose their house over a side job that went wrong. Not because they were bad tradies, but because their insurance had a gap big enough to drive a ute through.
Let’s get this straight from a bloke who’s been on the tools for over 20 years: insurance for side jobs isn’t just a good idea—it’s a necessity. And it’s not the same as what you’ve got for your main gig. Here’s the real deal on what you need to know, how to get covered, and what’s going on around Australia in 2026.
Why Your Main Trade Insurance Probably Won’t Cover Side Jobs
First thing to understand: most trade insurance policies are written for your declared trade. That means the insurer knows you’re a plumber, a sparky, a chippy, or whatever it is you do day in, day out. They’ve priced your premium based on the risks of that specific trade—the tools you use, the materials you handle, the kind of work you do.
Now, when you take on a side job that’s outside your main trade, you’re stepping into unknown territory for the insurer. Say you’re a plumber by trade, but you’ve agreed to paint a mate’s house on the weekend. Your public liability policy for plumbing doesn’t cover you for painting. Why? Because the risks are completely different. A plumber’s risk is water damage or a burst pipe. A painter’s risk is spilling paint on a client’s carpet or dropping a ladder through a window.
I’ve seen blokes get stung hard. One mate—a sparky—decided to build a deck for his sister-in-law. He’s handy, right? He’s done a few decks before. But his electrical insurance didn’t cover carpentry work. The deck collapsed because he used the wrong fixings. The claim was denied. He had to pay $15,000 out of pocket to fix it. That’s a lesson you don’t want to learn the hard way.
The bottom line: if you’re doing work that’s not your declared trade, you need separate cover. No exceptions. Even if it’s just a one-off job, don’t assume you’re protected. Check your policy wording. Look for the “trade or occupation” clause. If it says something like “covers work undertaken within the insured’s stated trade,” you’re not covered for anything else.
The Real Risks of Side Jobs Without Proper Insurance
Let’s talk about what can actually go wrong. Because it’s not just about a dropped hammer or a scratched floor. Side jobs carry risks that can blow up your life if you’re not covered.
Property Damage That’s Not Your Fault
Here’s a scenario: you’re a landscaper doing a side job as a bricklayer. You’re building a retaining wall. The client’s house next door has a dodgy foundation—something you didn’t know about. Your work causes vibration that cracks their neighbour’s driveway. Now you’ve got two people coming after you. Without the right public liability insurance, you’re paying for that driveway repair yourself. In 2026, a basic driveway replacement can run $3,000 to $8,000 depending on the state and materials.
Injury to a Third Party
What if a client trips over your extension cord and breaks their hip? Or a kid runs into your ladder and knocks it over? Public liability insurance covers you for these incidents. But only if the policy is for the specific work you’re doing. If you’re a roofer doing a side job as a painter, and you drop a paint roller on a passer-by, your roofing insurer will say, “Not our problem.” Medical costs for a serious injury can easily hit $50,000 or more. You’re on the hook for that.
Defective Workmanship Claims
This is the big one. Let’s say you’re a carpenter who takes on a side job as a plasterer. You fix a ceiling, but six months later it cracks. The client says your work was dodgy and wants you to pay for repairs. Most public liability policies exclude “defective workmanship”—they cover accidents, not bad work. But if you have a policy that includes some cover for your work, it’s tied to your declared trade. So again, you’re exposed.
In 2026, the average cost of a defective workmanship claim in Australia is around $12,000, according to industry data from the Insurance Council of Australia. For a side job that might only pay you $2,000, that’s a huge loss.
Damage to Your Own Tools or Gear
Side jobs often mean using your own tools. If you’re a sparky doing painting, and your paint sprayer gets stolen from the job site, your main trade tool insurance might not cover it because the tool isn’t used in your declared trade. Some policies cover tools regardless of use, but many are specific to the trade. Check the fine print.
How to Get Covered for Side Jobs in 2026
Right, so you’re convinced you need cover. But how do you get it without paying an arm and a leg? Here’s the practical advice from someone who’s been through it.
Option 1: Add a “Multi-Trade” Endorsement to Your Existing Policy
Some insurers offer endorsements or extensions that let you cover work outside your main trade. For example, you might be a plumber who occasionally does minor carpentry. You can add a “multi-trade” clause that covers you for up to, say, 20% of your annual turnover in other trades. This is usually cheaper than taking out a separate policy.
In 2026, this endorsement might add $200 to $600 per year to your premium, depending on the insurer and the trades involved. It’s worth asking your broker or insurer if this is an option. But be clear: it only covers you for incidental side jobs, not a full-time second trade.
Option 2: Take Out a Separate Policy for Each Side Trade
If you’re regularly doing side work in a different trade—say you’re a handyman who does plumbing, electrical, and carpentry—you might need separate policies for each. This can get expensive, but it’s the safest route. A basic public liability policy for a low-risk trade like painting might cost $400 to $800 per year in 2026. For higher-risk trades like roofing or electrical, expect $1,200 to $2,500 per year.
You can bundle policies with the same insurer for a discount. Or use a comparison platform like BizCover to compare quotes from multiple insurers. That way you can see what’s available without ringing around.
Option 3: Get a “Tradie Package” That Covers Multiple Trades
Some insurers now offer “tradie packages” that cover you for a range of trades under one policy. These are designed for handymen or small business owners who do different types of work. For example, you might get a policy that covers you for carpentry, painting, tiling, and basic plumbing. The premium will be higher—say $1,500 to $3,500 per year in 2026—but it’s often cheaper than three separate policies.
Check the list of covered trades carefully. Some policies have exclusions for high-risk work like electrical or roofing. If you need those, you might still need separate cover.
Option 4: Use a “Job-by-Job” Insurance Option
For the occasional side job, some insurers offer short-term or “job-by-job” insurance. You buy cover for a specific job, usually for a day or a week. This can cost $50 to $150 per job, depending on the trade and the value of the work. It’s not ideal if you do side jobs regularly, but it’s a good safety net for that one-off favour for a mate.
In 2026, this option is becoming more popular with digital insurers. You can often buy it online in five minutes. Just make sure the policy covers the exact work you’re doing.
State-by-State: What You Need to Know in 2026
Insurance laws and requirements vary across Australia. Here’s what’s changed or stayed the same in 2026 for each state and territory.
New South Wales (NSW)
NSW has strict rules around home building work. If you’re doing any residential building work over $5,000 (including labour and materials), you need a contractor licence and home building compensation cover. This applies to side jobs too. Even if you’re doing it for a mate, if the job is over $5,000, you’re legally required to have the right insurance. The NSW government’s 2026 updates have tightened enforcement, with fines of up to $22,000 for unlicensed work. Public liability insurance is also mandatory for most trades. Expect premiums in NSW to be on the higher side—$1,000 to $3,000 per year for a basic policy, depending on your trade and turnover.
Victoria (VIC)
Victoria requires domestic building insurance for any building work over $10,000. This is separate from public liability insurance. For side jobs under $10,000, you don’t need domestic building insurance, but you still need public liability. The Victorian Building Authority has been cracking down on unlicensed tradies in 2026, especially in the renovation sector. If you’re doing side work in VIC, make sure you’re licensed for the specific trade. Public liability premiums in VIC range from $800 to $2,500 per year.
Queensland (QLD)
Queensland requires a licence for most building work, including side jobs. The threshold is $3,300 for unlicensed work. For jobs over $3,300, you need a QBCC licence and insurance. In 2026, the QBCC has introduced a new online portal for checking licence status, so clients can easily verify you’re legit. Public liability insurance is compulsory for licensed tradies. Premiums in QLD are generally lower than in NSW—around $700 to $2,000 per year—but it depends on your trade.
Western Australia (WA)
WA has a tiered licensing system. For side jobs under $20,000, you might not need a licence for some trades, but you still need public liability insurance. The Building and Energy division has updated its guidelines in 2026 to clarify that even minor work requires insurance if you’re charging for it. Premiums in WA are similar to QLD: $700 to $2,200 per year.
South Australia (SA)
SA requires a building work contractor licence for any work over $1,500. That’s a low threshold, so even small side jobs can trigger the requirement. In 2026, the SA government has increased penalties for unlicensed work, with fines up to $20,000. Public liability insurance is mandatory for licensed contractors. Premiums in SA range from $800 to $2,400 per year.
Tasmania (TAS)
Tasmania has a more relaxed approach for small jobs. You don’t need a licence for work under $20,000, but you still need public liability insurance if you’re charging. The Tasmanian Building and Plumbing Commission has been encouraging tradies to get insurance voluntarily, even for small jobs. Premiums in TAS are lower—$600 to $1,800 per year.
Australian Capital Territory (ACT)
ACT requires a licence for any building work over $1,000. That’s the lowest threshold in Australia. In 2026, the ACT government has introduced a new online licensing system to make it easier to check compliance. Public liability insurance is compulsory. Premiums in ACT are around $800 to $2,200 per year.
Northern Territory (NT)
NT has a licensing threshold of $12,000 for most trades. For side jobs under that, you don’t need a licence, but you still need public liability insurance. The NT government has been running awareness campaigns in 2026 about the risks of uninsured work. Premiums in NT are generally lower, around $600 to $1,800 per year.
Common Mistakes Tradies Make With Side Job Insurance
I’ve seen it all over the years. Here are the most common traps blokes fall into.
Thinking “It’s Just a Small Job”
Doesn’t matter if the job is $200 or $20,000. The risk is the same. A small mistake can cost you big. I’ve seen a $500 painting job turn into a $10,000 claim because paint dripped onto a client’s new car. Always get cover, no matter the size of the job.
Assuming Your Mate’s Insurance Covers You
Some clients have their own public liability insurance that covers visitors or contractors on their property. But that’s for accidents they cause, not accidents you cause. If you damage their property, their insurer won’t pay—yours should. Don’t rely on the client’s cover.
Not Telling Your Insurer About Side Jobs
If you take out a policy for your main trade and don’t mention you’re doing side work in another trade, you’re technically misrepresenting the risk. If you have a claim, the insurer could deny it entirely. Always be upfront with your insurer. In 2026, insurers are using data analytics to cross-check claims and policy details, so they’re more likely to catch discrepancies.
Using Your ABN for Side Jobs Without Proper Cover
If you’re using your ABN for side jobs, you’re operating as a business. That means you need business insurance. Personal insurance won’t cover you. And if you’re not registered for GST but should be (because your turnover is over $75,000), you could also have tax issues. Keep your side job income and insurance separate from your personal stuff.
FAQ: Tradie Insurance for Side Jobs
Do I need a separate policy for every side job I do?
Not necessarily. You can get a multi-trade endorsement on your main policy, a tradie package that covers several trades, or job-by-job insurance for occasional work. But if you regularly do side work in a different trade, a separate policy is safest.
What’s the minimum insurance I need for a side job?
At a minimum, you need public liability insurance. This covers injury to a third party or damage to their property. For most states, it’s legally required if you’re licensed. Even if it’s not required, don’t skip it. A single claim can wipe you out.
Can I use my main trade insurance if I’m just “helping a mate” for free?
Even if you’re not charging, you could still be liable if something goes wrong. A mate can sue you just as easily as a paying client. Most policies cover you for work you do for payment, but some also cover voluntary work. Check your policy. If in doubt, get cover.
How much does side job insurance cost in 2026?
For a basic public liability policy for a low-risk trade like painting, expect $400 to $800 per year. For higher-risk trades like roofing or electrical, it’s $1,200 to $2,500 per year. Job-by-job insurance costs $50 to $150 per job. Multi-trade endorsements add $200 to $600 per year to your existing premium.
What happens if I have a claim and I’m not covered?
You’re personally liable for all costs. That means you pay for repairs, medical bills, legal fees, and any compensation. I’ve seen blokes have to sell their ute or take out a personal loan to cover claims. In extreme cases, it can lead to bankruptcy. Don’t risk it.
Do I need insurance if the client signs a waiver?
A waiver might protect you from some claims, but it’s not foolproof. Courts can set aside waivers if they’re unfair or if you were negligent. Also, waivers don’t cover you for injury to third parties (like a passer-by) or damage to property you don’t own. Insurance is always better than a piece of paper.
Can I get insurance for a side job if I’m not licensed?
Some insurers offer cover for unlicensed tradies, but it’s harder to find and more expensive. In most states, you need a licence for work over a certain value. If you’re doing side jobs without a licence, you’re breaking the law. Get licensed first, then get insured.
How do I compare insurance options for side jobs?
Start by checking with your current insurer to see if they offer multi-trade cover. If not, use a comparison platform like BizCover to compare quotes from multiple insurers. Look at the policy wording carefully—check what trades are covered, what’s excluded, and the limit of liability. Don’t just go for the cheapest option.
Final Word from a Bloke Who’s Been There
Look, I get it. Side jobs are a good way to make extra cash, build your reputation, and help people out. But they’re not worth losing everything over. I’ve seen too many tradies think they’re bulletproof, only to get hit with a claim that could have been covered for a few hundred bucks a year.
In 2026, the rules are tighter, the penalties are higher, and clients are more aware of their rights. Don’t be the bloke who learns the hard way. Get the right insurance for every job you do, whether it’s your main trade or a side gig. Talk to your insurer, read your policy, and if you’re not sure, ask. It’s your livelihood on the line.
Stay safe, stay covered, and keep doing good work.