Draft Insurance Code Could Lift Claims Standards for Tradies

That matters because a claim is often the moment when insurance becomes business-critical. A delayed vehicle, tools, workshop or property claim can interrupt jobs, strain cash flow and affect customer commitments. Under the draft, home and motor claims left undecided after 12 months would be automatically accepted, subject to defined exceptions. While tradies should not assume every business policy will be treated the same way, the move signals a stronger focus on timeliness and accountability.

The draft also lifts expectations around expert reports, cash settlements, primary claims contacts and support for customers experiencing vulnerability. For builders, restorers, repairers and other trades involved in insurance repair work, a new definition of claims fulfilment provider is also notable because it recognises the different role played by contractors compared with independent technical experts.

However, the detail will be important. The ICA’s own guidance says the code applies to retail general insurance and some small business and commercial insurance, but not all products are captured. Public liability, workers compensation, medical indemnity, domestic builders’ insurance, reinsurance, life and health insurance are listed as outside scope. That means a typical tradie package may include some sections affected by the code and others that are not.

• Check whether your insurer is a code subscriber and which parts of your policy are covered.
• Keep a dated claim file with photos, invoices, repair notes, serial numbers and communications.
• Ask how timeframes, expert reports and cash settlement processes apply to your policy type.
• Use renewal season to compare cover options rather than simply accepting last year’s schedule.

The proposed code is not yet final and still requires further consultation and ASIC approval. Even so, it is a timely reminder that price should not be the only renewal question. Scope, exclusions, claim service standards and dispute pathways can be just as important for a working trade business. If you are unsure how your public liability, tools, commercial motor or workshop contents cover fits together, seek professional assistance before a loss exposes a gap.