General Insurance Code Review Could Change the Claims Experience for Tradies

For tradies, this is not just a compliance story. The code influences practical issues that can affect cash flow and business continuity after a loss: how quickly claims are handled, how insurers communicate, how disputes are managed, and how settlement options are explained. If your ute is off the road, tools are stolen, a storm damages a worksite, or a liability claim lands at the wrong time, process delays can create real pressure.

The review of the 2020 code began in November 2023 and resulted in more than 100 recommendations in late 2024. The Insurance Council of Australia has previously indicated the new code will be redrafted to become ASIC-approved and contractually enforceable. That matters because a stronger code could lift expectations around fairness, accountability and consistency across the sector.

However, tradespeople should not wait for the new code before tightening their own insurance housekeeping. Renewal time remains one of the best opportunities to check whether cover still matches the way the business actually operates. A carpenter who has taken on larger renovation projects, an electrician doing more commercial work, or a plumber carrying higher-value equipment may have outgrown last year’s policy settings.

Key areas worth reviewing include:

• Whether public liability limits are suitable for your current contracts and job sites.
• Whether tools, plant, trailers and mobile equipment are insured for realistic replacement values.
• Whether commercial vehicle cover reflects work use, storage locations and drivers.
• Whether business interruption, contract works or professional indemnity exposures have changed.
• Whether exclusions, excesses and claims conditions are clearly understood before a problem occurs.

The likely direction of reform is positive for policyholders, but it will not remove the need to read policy documents carefully and ask questions early. If the new code strengthens claims handling and dispute standards, tradies with accurate records, updated sums insured and clear disclosure will be in the best position to benefit.

For now, the message is simple: use the code review as a prompt to get organised. Speak with an insurance broker if your business has become more complex, and compare their cover options before renewal rather than assuming last year’s policy still fits.