Income Protection Insurance for Tradies

As a tradie, your livelihood depends on your health. Whether you’re a builder hauling materials, an electrician working in tight spaces, or a plumber crawling under houses, your work puts you at higher risk of injury than most office workers.

Income protection insurance provides a financial safety net when injury or illness stops you from earning an income.

In this article, we’ll explore why income protection can be particularly important for tradespeople, and how to decide on the right coverage for your situation.

Understanding income protection insurance and why it can be important for tradespeople

Income protection insurance replaces part of your income if you can’t work due to illness or injury. It provides regular monthly payments to help cover your living expenses while you recover. Learn more about how income protection insurance works.

For tradies, the risks are higher than average. According to Safe Work Australia, labourers and technicians consistently report some of the highest rates of serious injury claims in the country. These often involve falls, trips, contact with machinery, or lifting injuries.

What’s more, many tradies are self-employed or contractors, which means there’s no access to paid sick leave. According to NobleOak’s 2025 Pulse Report, 60% of tradies surveyed said they would struggle to meet their financial obligations if they lost their income for more than a month.

If you can’t work, the bills don’t stop. That’s where income protection for tradies may help.

But I have workers’ compensation, isn’t that enough?

Workers’ compensation is helpful, but it only covers injuries that happen at work, and only under specific conditions. If you get sick, hurt yourself at home, or suffer from a condition like a hernia, back injury, or mental health issue that makes it difficult to work, workers’ comp may not cover you.

Income protection for plumbers and other tradies can fill this gap. It provides ongoing financial support regardless of where or how the illness or injury occurs (as long as it meets the policy conditions). It’s about protecting your lifestyle, not just your job site.

How does income protection work for tradies?

Income protection policies in Australia can cover up to 70 – 75% of your pre-tax income if you can’t work due to illness or injury. You’ll usually receive these payments monthly, after a minimum waiting period under the policy subject to meeting the policy conditions and eligibility criteria. The cover continues for a specific benefit period, which can range from one year from the time your claim is accepted, and your waiting period is over, to up to age 65, depending on the policy conditions.

Your benefit amount, waiting period and policy features can vary depending on the provider, so it’s worth you comparing the options.

Who might need it?

Most tradespeople can benefit from income protection, especially if you’re self-employed or don’t have access to sick leave. Below are some of the common issues that specific tradespeople may face in their day-to-day work:

• Builders: Construction sites present constant hazards from heavy machinery, falls from height, and manual handling injuries. Injuries from lifting materials or repetitive strain can sideline you for months.
• Plumbers: Crawling in confined spaces, lifting heavy pipes and exposure to chemicals put plumbers at risk of both acute injuries and long-term health issues. Knee and back problems are common occupational hazards.
• Electricians: Working with live electrical systems, often in cramped or elevated positions, creates risks of electrical shock, falls, and repetitive strain injuries from detailed wiring work.
• Carpenters: Operating power tools daily and handling heavy timber increases the risk of cuts, crush injuries, and repetitive strain conditions. Dust exposure can also lead to respiratory issues over time.
• Painters: Chemical exposure, working at heights on scaffolding or ladders, and repetitive overhead movements put painters at risk of respiratory problems, falls, and shoulder injuries.
• Mechanics: Working under vehicles, handling heavy parts, and exposure to chemicals create risks of crush injuries, burns, and long-term joint problems.

Income protection for builders and other tradies provides a form of safety net when your work puts your body on the line. It may help keep your household running by covering rent or mortgage, groceries, and other essentials while you focus on getting back on the tools.

Policy features to consider 

When choosing income protection insurance, it’s important to look beyond just the monthly benefit amount. The fine print matters – different policies come with features that can affect how much you’re paid, how long you’re covered, and how easy it is to make a claim. Here are some of the main features to keep in mind when comparing options:

• Benefit amount: This is how much you’ll receive each month if you were eligible to claim, usually expressed as a percentage of your pre-tax income. Most policies cover 70% of your income, but this varies by insurer and your specific circumstances.
• Waiting period: This is the time between when you become unable to work and when payments start. You can usually choose between various options when taking out your cover. Shorter waiting periods mean higher premiums, but faster access to benefits. Common options are 30, 60, or 90 days.
• Benefit period: You can usually choose your benefit period. NobleOak Income Protection provides options from one, two years, five, ten years, or until age 65. Longer benefit periods cost more but provide more security.
• Own occupation vs any occupation: ‘Own occupation’ covers you if you can’t perform your specific trade, while ‘any occupation’ only pays if you can’t work in any job suited to your education and experience. Taking out ‘own occupation’ will generally be more expensive than selecting ‘any occupation’.
• Agreed value vs indemnity policies: You may have heard the term agreed value policy. Agreed value policies lock in your benefit amount when you apply, while indemnity policies use your current income at the time of your claim in order to assess your payment entitlement. However, agreed value policies were removed from the market in Australia in March 2020.
• Age stepped vs level premiums: Age stepped premiums start lower but increase with age, while level premiums stay the same. Generally, Income Protection offered in Australia will offer age stepped premiums
• Underwriting: This is the assessment process when you apply. NobleOak provides fully underwritten insurance, which means we assess your health and lifestyle upfront. While this involves more questions initially, it provides certainty that valid claims will be paid without surprises later.

Common challenges tradies face

When it comes to applying for income protection insurance for tradies, you can run into a few hurdles. Understanding these challenges can help you prepare, and make sure you get the cover you need:

• Fluctuating income: Many tradies work on a project or seasonal basis, which means income can vary from month to month. This can make it harder for insurers to calculate your average earnings.
• Multiple income sources: If you take on both subcontracting work and side jobs, it can complicate your application. You’ll need to provide clear documentation that separates your trade income from other sources.
• Proving earnings: Unlike salaried employees with regular payslips, tradies often rely on invoices and bank statements. If your records aren’t up to date or detailed, it could delay your application or claim.
• Cash jobs or under-reported income: If some of your work is paid in cash and not declared, you won’t be able to use that income to support your policy. This could mean you end up with a lower level of cover than you potentially need.
• Physical strain and injury risk: The nature of trade work increases the likelihood of injury. Frequent claims within the industry may lead to higher premiums or stricter policy conditions for certain trades.

To avoid issues including delays, keep thorough and up-to-date financial records including invoices, tax returns and BAS statements. This gives insurers a clear picture of your earnings, which speeds up application approvals and claim payouts.

Is income protection insurance tax-deductible for tradies?

Yes, in many cases, income protection premiums are tax-deductible if the cover is held outside of superannuation. This can help reduce the overall cost of taking out cover.

Tax rules can be tricky, so it’s best to speak with a registered tax agent or accountant to understand what applies in your situation.

Award-winning income protection insurance

Don’t let an injury or illness derail your financial future. Income protection insurance for tradies can provide some peace of mind knowing that if you can’t work, you may still have some income coming in, to support yourself and your family.

NobleOak’s Income Protection product is designed with Australian workers in mind. Our fully underwritten approach means you should know exactly what’s covered from day one, reducing surprises when you need support most.

Ready to protect your income? Learn more about our income protection insurance or get a quote online today to see how affordable income protection can be.

Any financial product advice is general in nature only and does not take into account your individual circumstances, objectives, financial situation, or needs. Before acting on it, please consider the appropriateness of the information, having regard to those factors. Any third party websites or tools referred to are subject to their own terms and conditions and NobleOak Life Limited makes no representation or warranty as to any information on those websites. Persons deciding whether to acquire or continue to hold life insurance issued by NobleOak Life Limited should consider the relevant Product Disclosure Statement and Target Market Determination for the product. NobleOak Life Limited ABN 85 087 648 708 AFSL 247302.