Tender insurance and certification checklist for Australian SMEs

Insurance and certifications are the dullest part of a tender and one of the easiest places to get excluded. Here's what you'll be asked for, the amounts official sources ask for, how to prove each one, and what to do when you're missing something.

Insurance: the five covers tenders ask about

Public liability

Public liability covers you if someone dies, is injured or has property damaged because of your negligence (business.gov.au). Expect to need it for any job that puts you on someone else's site or in contact with the public.

What official sources asked for:

• Shoalhaven City Council asks contractors for at least $20 million for any one occurrence, unlimited in the aggregate (Shoalhaven City Council).
• Bathurst Regional Council's policy requires $20 million. For work under $20,000 or very low-risk work, it will normally check with its insurer before accepting less (Bathurst Regional Council).
• The Victorian Department of Education's minimum for contractors at government schools is $10 million (Victorian Department of Education).
• Queensland's prequalification system for building consultants sets a $5 million minimum per claim (Business Queensland).

Professional indemnity

Professional indemnity covers claims about your professional advice or services, such as mistakes, neglect or breaches of contract that cause your client a loss (business.gov.au). Consultants, designers, engineers, IT providers and advisers get asked for it.

What official sources asked for:

• Shoalhaven sets the limit for each engagement based on risk, above $1 million.
• The Victorian Department of Education requires advisers to hold no less than $5 million per event and in the aggregate.
• Queensland's building consultant prequalification requires at least $1 million per claim, with requirements of $1 million to $10 million depending on project value and risk.

Check how long the contract wants you to keep it. The Department of Finance notes that some insurance, such as professional indemnity, may need to extend beyond the life of the contract (Finance: insurance requirements).

Workers compensation

Under Australian law, employers must have insurance covering workers who get sick or injured because of work. There's a scheme for each state and territory plus three Commonwealth schemes, and each runs under different laws (Safe Work Australia). Because the state schemes set the rules, buyers ask for it by reference to the law rather than a dollar limit. Shoalhaven, for example, asks for cover in line with statutory requirements. Check the certificate is for the state where you'll work.

If you're a sole trader, workers compensation doesn't cover you, and you'll need your own accident, illness or income cover (business.gov.au). Some councils accept that instead. Shoalhaven, for example, accepts personal accident and illness or salary continuance cover from sole traders and partnerships without workers compensation.

Product liability

If you make, sell or supply goods, even as part of a repair or service, product liability covers injury, death or property damage your product causes (business.gov.au). If you supply goods, ask your broker whether your liability policy includes products cover, and check the certificate shows it.

Cyber

Cyber insurance covers costs such as ransomware, business interruption from a cyber event, data breaches and the release of customer personal information (business.gov.au). Commonwealth agencies are expected to consider and manage procurement security risk, including cyber security risk (Commonwealth Procurement Rules, para 8.3), so expect cyber questions on ICT and data-handling work. I couldn't find an official source giving a typical tender amount for cyber cover, so I won't guess one. If a tender asks for it, the amount will be in the clause.

Summary

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That's a handful of official sources, not a survey. Always use the amount in your tender.

When the insurance has to be in place

For Commonwealth procurements, suppliers should not be directed to take out insurance until a contract is to be awarded (CPR 8.4(b)). Finance's guidance adds that the successful tenderer should give a valid certificate of currency for each required type at award, that requirements shouldn't unreasonably discourage participation, and that the approach to market should give enough detail for suppliers to price the cost (Finance: insurance requirements).

Councils and state agencies set their own rules. Some want the certificate with the tender, like the worked example below. Bathurst requires it before any work starts. Read the clause for when as well as how much.

Worked example: logging a mandatory insurance clause

Wattle Creek Shire Council is a fictional NSW council running RFT 2026-14, Cleaning of Council Facilities. Its insurance clause reads:

9.1 The Tenderer must hold public liability insurance of not less than $20 million for any one occurrence and must submit a current certificate of currency with its Tender. Council must be noted as an interested party on the policy before the contract commences.

9.2 The Tenderer must hold workers compensation insurance as required by law.

That's four separate obligations, so it becomes four rows in the compliance matrix:

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Before you mark INS-02 done, check the certificate itself:

1. Insured name. It must match the tendering entity on your tender form. A trading name on one and a Pty Ltd name on the other is a classic problem.
2. Cover type. Public liability, plus products if relevant.
3. Limit. At least $20 million, on the basis the clause uses ("any one occurrence").
4. Period of insurance. Current at closing. If it renews during evaluation, say so and send the new certificate when you get it.
5. Business activity. The described activity covers commercial cleaning.
6. Insurer and policy number. Both legible.

Bathurst's policy shows why INS-03 matters: it asks to be noted as an interested party and wants an updated certificate if a policy expires or the insurer changes.

Certifications and accreditations

ISO 9001, ISO 14001 and ISO 45001

These cover quality management (ISO 9001), environmental management (ISO 14001) and occupational health and safety management (ISO 45001).

Watch the editions. ISO 9001:2026 and ISO 14001:2026 have replaced the 2015 editions, and ISO says organisations certified to ISO 9001:2015 should ask their certification body about transition (ISO 9001, ISO 14001). ISO 45001:2018 is still current, with a revision expected (ISO 45001). If a tender names an edition, answer against it and mention your transition plan.

ISO doesn't certify anyone. Certification is done by external certification bodies, and accreditation bodies confirm those certification bodies are competent (ISO: certification). In Australia and New Zealand, the JASANZ register lets anyone verify a certificate or find an accredited certification body (JASANZ). Assume the buyer can check.

Older tender templates sometimes still ask for AS/NZS 4801. Standards Australia treats it as superseded by AS/NZS ISO 45001:2018 (Standards Australia).

WHS management systems for construction work

• NSW Government construction. For contracts up to $1 million, contractors must prepare and implement an acceptable WHS management plan, and at tender stage show they can (for example, with a draft or previous plan). Above $1 million, principal contractors also need a WHS management system certified under JAS-ANZ to AS/NZS ISO 45001, plus evidence of past WHS performance. Federal Safety Commissioner accreditation is deemed to comply (NSW WHS management guidelines for construction).
• Australian Government funded building work. Head contractor builders must be accredited under the WHS Accreditation Scheme, subject to monetary thresholds and exemptions (Office of the Federal Safety Commissioner). The requirement sits with the head contractor, but subcontractors on an accredited builder's site may have to meet requirements that builder sets (OFSC: subcontractors).
• Safe work method statements (SWMS). A SWMS is required for the 18 high-risk construction work activities in the WHS Regulations, and it must be prepared before that work starts (Safe Work Australia). If your scope includes any of them, have current SWMS ready.

Licences, clearances and registrations

Use ABLIS to find which licences apply to your business and location. Council contractor lists can be long: Shoalhaven's includes ABN or ASIC registration, trade qualifications, security and high-risk licences, plant competencies, and SWMS with a WHS policy.

Some policy certificates have lead times:

• Victoria. Suppliers bidding for procurement contracts of $1 million or more (excluding GST) should hold a Fair Jobs Code pre-assessment certificate, which is free. Contracts of $20 million or more also need a Fair Jobs Code plan (Buying for Victoria).
• NSW. Goods and services contracts over $3 million require an SME and Local Participation Plan, and all contracts over $7.5 million require an Aboriginal Participation Plan (buy.nsw).

What to do if you don't hold it yet

1. Work out what kind of requirement it is. Is it pass/fail at tender, needed at award or before work starts, or desirable and scored? The mandatory vs desirable guide explains how to tell.
2. Insurance needed at award. Get a broker quote now, price the premium in, and confirm the cover will be in place before the contract starts.
3. Insurance needed with the tender. If you can arrange the cover before closing at a sensible cost, do it. If not, ask the contact officer before the questions deadline whether a broker's letter confirming cover on award is acceptable, and get the answer in writing. If it's no, don't bid.
4. Mandatory certification you don't hold. Don't bid, unless the conditions expressly let you rely on a partner's or subcontractor's certification.
5. Desirable certification you don't hold. Describe the system you actually run (procedures, internal audits, records) and, if you've started certification, name the certification body and audit dates. Don't write "ISO compliant" in a way that implies a certificate.
6. Never overstate. False declarations are grounds for exclusion (CPR 10.17), and giving false or misleading information to the Commonwealth is a serious offence (Commonwealth ATM Terms, cl 8.1).

Your evidence library

Keep one folder, checked monthly:

• certificates of currency for public liability (with products, if relevant), professional indemnity, workers compensation in each state you employ in, and cyber if you hold it
• ISO certificates, with a screenshot of the JASANZ register entry
• WHS policy, procedures and current SWMS
• licences, clearances and registrations, with expiry dates
• policy certificates such as a Fair Jobs Code pre-assessment certificate
• ABN and ASIC extracts, so the entity name matches everywhere.

If you'd rather not hunt through each pack for what it wants, FileAI's tender pack breakdown lists every insurance, certification, returnable and key date in one checked spreadsheet, for A$79 per tender pack, with each row linked to its page.

Sources

• Department of Finance, Commonwealth Procurement Rules (17 November 2025), paras 8.3, 8.4, 10.17
• Department of Finance, Insurance requirements: CPR paragraph 8.4 (March 2022)
• Department of Finance, Commonwealth Approach to Market Terms, version 10.0 (November 2025)
• business.gov.au, Types of business insurance
• Safe Work Australia, Workers' compensation
• Safe Work Australia, Safe work method statement for high risk construction work: information sheet
• Shoalhaven City Council, Contractor requirements
• Bathurst Regional Council, Public liability insurance policy (reviewed November 2024)
• Victorian Department of Education, Contractors: insurance and contract arrangements
• Business Queensland, Insurance for building consultants
• ISO, Certification; ISO 9001:2015; ISO 14001:2015; ISO 45001:2018
• JASANZ, The JASANZ register
• Standards Australia, Relevant standards key to improved workplace safety
• NSW Government, Work health and safety management guidelines for construction procurement, edition 6 (December 2019)
• Office of the Federal Safety Commissioner, What is accreditation and is it for me? and What does accreditation mean for subcontractors?
• Australian Business Licence and Information Service, ABLIS
• Buying for Victoria, Fair Jobs Code: suppliers and businesses
• buy.nsw, Tender evaluation criteria

This guide is general information, not legal or procurement advice. Always follow the conditions of the specific tender you're responding to.