Insurance Code Rewrite Could Lift Standards for Tradies

Financial Services Minister Daniel Mulino has signalled he wants meaningful progress on the revised code, rather than a drawn-out process. The review of the 2020 code began in November 2023, with an independent review panel later producing more than 100 recommendations. The Insurance Council of Australia has previously indicated the new version is expected to be contractually enforceable and submitted for ASIC approval, which would give the code more weight than a simple industry promise.

For tradespeople, this matters because insurance is not just a background business cost. Public liability, tools cover, vehicle cover, contract works and income protection can all become urgent when something goes wrong on site. A delayed claim, unclear settlement offer or confusing dispute pathway can put cash flow, client relationships and future work at risk. Stronger minimum standards could help make the claims process easier to follow when a sole trader or small crew does not have time to chase paperwork for weeks.

The areas being closely watched include claims management, cash settlements, temporary accommodation and dispute resolution. While some of those examples are more obvious in home insurance, the broader principle is relevant to small business cover: policyholders need timely information, plain English decisions and a fair process when they challenge an outcome.

This is also an extension of wider concerns about insurer trust and complaints handling. Recent industry scrutiny has shown that customers want clearer explanations, faster responses and fewer surprises at claim time. For tradies, the practical lesson is to treat insurance documents as business-critical, not admin to file away and forget.

Before renewal, it is worth checking:

• whether your policy limits still match the size and type of jobs you now take on;
• what evidence you would need to support a tools, vehicle, liability or interruption claim;
• how cash settlements are calculated and whether they would actually cover replacement or repair costs;
• what steps apply if you disagree with an insurer’s decision.

Until the revised code is released and finalised, tradies should stay proactive. Review your trades insurance cover, keep photos and records of key assets, and ask clear questions before accepting a policy or settlement. If the wording is difficult to understand, speaking with licensed brokers can help you compare options and understand what is, and is not, covered.