Trades business pack vs public liability: what each section actually covers
My trade insurer quotes a business pack. Is public liability inside it or separate, and do I lose anything if I only buy the pack?
The short answer, before the detail
They are usually different sections answering different questions, and “trades insurance” is a sales label rather than a legal category. In a business pack policy wording, the property sections and the liability sections are numbered separately and are only in force if they are shown as insured in the schedule. So the pack “includes” liability only if the schedule says that section is on. Ask to see the schedule before you assume anything.
What the property sections answer
In an example business pack policy wording, the pack opens with property damage, business interruption, theft, money, glass, general property, and breakdown sections. General property covers items used in your business that are damaged during the policy period, and the wording distinguishes items that are specifically described on the schedule from items that are not specified. This is the “my stuff” half of the pack: your van contents, your stock, your equipment on the premises.
Business interruption is the other half people forget. It responds not to the damage itself but to the income you lose while the damage stops you trading — for example a fire that damages the property you operate from.
What the liability section answers
The liability section in the same wording is public and products liability, and it responds to you becoming legally liable to pay compensation for personal injury, property damage, or advertising injury arising from an occurrence connected with the business. That is a different trigger: it is not about your things, it is about a third party claiming against you. The wording also sets a limit per occurrence and an aggregate limit across the policy period, and applies an excess.
business.gov.au puts public liability in the same family: it lists it among the insurances you may need, and notes that some states and territories require it for certain occupations.
Do you lose anything by only buying the pack?
It depends entirely on the schedule. If the liability section is not shown as insured on the schedule, then under that wording the section “is deemed deleted and no cover is granted” — the property cover would stand on its own, but the public liability protection would not. Conversely, a trades pack that names a limits-of-liability figure for the liability section is telling you liability is in the pack, just at that limit.
Three questions that settle it in one minute. These are the questions to ask the broker, or to check yourself on the schedule, before you decide the pack is enough:
- Is the public liability section shown as insured in the schedule, and at what limit?
- Is business interruption shown as insured, and for how long (the indemnity period)?
- Are my tools specified items, or is the property section open (unspecified) cover?
A note on vehicles
One more thing to know for a van- or ute-based trade: in the example wording, the general property section expressly does not cover vehicles, motorcycles, trailers or caravans. The vehicle itself is not part of the business pack property cover — that is a separate question we cover in another guide.
What to do next
Take the schedule and the PDS to a licensed broker and ask them to confirm, section by section, what is and is not on. That is a conversation we cannot have for you — we are not an insurer or broker — but it is the fastest way to a defensible answer.
Some pages contain a referral link to BizCover. If you use it and take out a policy, we may receive a commission at no extra cost to you. Referral arrangements do not influence which cover types we explain or how we explain them.
Sources
Traders often assume the pack includes liability because it is sold as trades insurance; the sections and limits are set out separately in the policy wording and differ between insurers.
coverage.chat provides general information about business insurance. We are not an insurer, broker, or financial adviser, and we do not hold an Australian Financial Services Licence. Nothing here is personal advice, a quote, or a recommendation to buy a particular policy. Read the Product Disclosure Statement and speak with a licensed broker before you decide.