to main content to contact page

Operating cash flow, WHS requirements and contract disputes with suppliers and customers are just a few of the challenges Tradies face. Tradies, often have limited resources and are vulnerable to legal complexities in their daily operations. With 20% of self-employed people packing up their business each year, it’s no wonder that insurance is the last thing on their minds!

Despite the freedom that comes with running your own business, tradies face many risks and complexities. Did you know that you can be personally liable for all business debts incurred which could potentially wipe out your personal assets! Ensuring you have the right protection for you, and your business is critical.

That’s why ARAG Australia (ARAG) has launched Business Legal Expenses Insurance (LEI) for Tradies. Insurance, that provides access the legal system through our simple claims process but also supports you with a dedicated Legal Helpline and Document Centre for guidance and support regardless of fault or the issue.

Headlines in 2021 highlighted the need for tradies to have access to Legal Expenses Insurance

A pre-Christmas 2021 blitz by Queensland’s embattled building industry watchdog has seen it suspend the licences of a staggering 2640 contractors...The QBCC also revealed that it had cancelled 203 licences last month for failing to comply with minimum Financial standards and another 27 for other reasons.

Legal Expense Insurance covers legal disputes in regards to statutory licenses and compliance and regulation.
Often, we don’t consider the price of engaging legal advice until it’s too late and the financial cost can be prohibitive, with the average hourly rate of retaining a solicitor being around $600ph * According to the Australian Small Business and Family Enterprise Ombudsman 2018 report, 42% of Tradies were less likely to seek advice when disagreements or contract disputes occurred compared to larger organisations, of which 75% sought advice. 67% of large businesses were able to resolve disputes without progressing to a formal procedure, highlighting the benefit for Tradies to have access to legal advice and representation if a dispute occurs.

In 2018/19, the ATO reported that there was a 20% increase of breach notices given to businesses, which required that 5,884 businesses stop operating. Additionally, over 2,000 small businesses have been selected by the ATO for random audit review. ARAG’s appointed lawyers and accountants can support and provide assistance, with Tax Audit and Investigations.
Legal Expense Insurance is a valuable addition to the Tradies Insurance programme, offering affordable legal advice and representation. It's like having a lawyer in your toolbox!

Case Study - Contract Cover

Knock on Wood, a carpentry business, was approached by a customer to install skylights in their home. Knock on Wood is a small enterprise and engaged a Skylight contractor to supply and install the skylights at a cost of $7,000. The skylights were installed and not properly sealed. Following complaints by the customer, Knock on Wood arranged for the skylights to be replaced by a different contractor, they then claimed damages from the original contractor. The original contractor refused to compensate Knock on Wood. A claim was lodged with ARAG who reviewed and accepted the claim. The appointed lawyers forwarded a demand for payment which resulted in negotiations and a quick settlement with damages paid to Knock on Wood. ARAG paid for the legal costs incurred less the excess.

Contact ARAG Services Australia Pty Ltd at or visit us at

ARAG Services Australia Pty Ltd (ABN 14 627 823 198) (ARAG) has been granted delegated authority by the Insurer to enter into, vary or cancel Policies and handle Claims on their behalf. In providing these services, ARAG acts on behalf of the Insurer and not as Your agent. ARAG is authorised to provide financial services in accordance with its Australian Financial Services Licence (AFS Licence number 513547). Any advice provided by ARAG in relation to this product is general in nature and does not take into account Your individual circumstances.
The Insurer is detailed in your policy documents.

All enquiries should be addressed to ARAG.

Any advice contained on this website is general advice only and has been prepared without considering your individual objectives, financial situation or needs. Before purchasing or renewing a product we recommend that you consider if it is suitable for your circumstances and read the policy terms and conditions.