Public Liability
Insurance.

Public liability insurance responds when a third party suffers bodily injury or property damage connected to your business activities and holds you legally responsible. It covers your legal defence costs and any compensation you become liable to pay, up to the policy limit.

Public liability insurance does not cover injuries to your own employees. It does not cover claims arising from professional advice or errors. Damage to the business's own property, incidents involving registered motor vehicles and intentional acts are also typically excluded. The appropriate cover for each of these scenarios depends on individual circumstances.

There is no single law requiring all businesses to hold public liability insurance in Australia. However many contracts, commercial leases, government tenders and trade licences may require evidence of cover before work can start. Some licensed trades may also be required to hold it as a condition of their licence under state rules.

Premiums vary widely. Lower risk businesses can generally pay from around $500 to $1,000 per year for standard cover. Businesses with regular client or site interaction typically pay between $1,000 and $3,000+ annually. Higher risk occupations including construction, labour hire and events can pay well above $10,000 per year and significantly more for complex operations. These are general market ranges only. An accurate premium requires an underwriter assessment of your specific circumstances.

Public liability claims vary widely in size. A straightforward incident such as a slip and fall at business premises can result in legal costs and compensation of tens of thousands of dollars. More serious incidents involving significant injury or extensive property damage can produce claims well into the millions. An uninsured business bears these costs directly.

The most common limits in the Australian market are $5 million, $10 million and $20 million. Higher limits are also available for businesses with larger or more complex risk profiles. The appropriate limit depends on your contract requirements, industry licensing conditions and the nature of your activities. Many contracts and some councils may require a minimum of $10 million.

A Certificate of Currency is a document issued by your insurer confirming your policy is active. It sets out the key terms including the insured party, cover limit and policy period. It is commonly required by clients, landlords, councils and site managers as evidence that your business holds valid public liability cover.

Insurers typically ask for your occupation or business type, annual turnover, number of employees, use of subcontractors, location of operations, claims history and the cover limit you require. Some occupations require additional detail about the nature of specific activities. A broker can help you present this information accurately to the market.

Public liability deals with physical harm: someone being injured or property being damaged because of something a business did. Professional indemnity deals with financial harm: a client suffering a loss because of an error or omission in advice or services provided. Businesses that advise clients and also interact with the public often carry both covers.

Public liability responds to injury or damage caused by business activities. Product liability responds to injury or damage caused by goods a business manufactures, supplies or sells. Many public liability policies include product liability as a standard extension, though the conditions are worth reviewing particularly for businesses that import, manufacture or repackage goods.

A principals liability extension is a policy provision that provides some protection to the named insured when a claim arises from work performed by contractors or subcontractors on their behalf. It does not extend cover to the subcontractors themselves. The scope of the extension varies between policies and is worth confirming with your broker.

Generally a public liability policy covers the named insured, not subcontractors or labour hire workers acting independently. Many policies include a principals liability extension that provides some protection when a claim arises from work performed by contractors on behalf of the insured, but the scope varies by policy.

Notify us as soon as possible. Do not admit liability or make any payments to the claimant before speaking with us. Your insurer will typically appoint a claims manager or legal representative to assess and manage the claim. We will be actively involved throughout the process, not just at the point of initial notification.

A decline from a standard insurer does not mean cover is unavailable. Specialist underwriting agencies operate in the Australian market with appetite for a wider range of occupations and risk profiles, including businesses that have had prior claims or that operate in industries standard insurers consider higher risk. A broker with access to the specialist market can help identify suitable options.

When a third party alleges injury or property damage caused by your business, you notify us as your broker. The insurer will typically appoint a claims manager or legal representative to assess the claim, investigate liability and manage the legal process. We remain actively involved throughout, advocating for your interests rather than simply facilitating the lodgement.