Public liability insurance for Australian businesses

Insurers use a range of details to calculate your insurance premium. These include your:

• Type of insurance
• Level of cover 
• Business turnover 
• Industry 
• Prior claims history.

All of this can differ depending on whether you’re a small business owner, or run a larger corporation.

Insurers may also factor in the number of claims they expect to receive in a year for a particular business type.

To keep your premium low, we leverage our strong market relationships to obtain quotes from multiple insurers on your behalf.

All businesses may be susceptible to public liability claims.

In certain regions, some professions – like plumbers or electricians – must have public liability insurance.

In other instances, suppliers, customers, landlords and other parties may require you to have a certain limit of liability before you can start work.

If customers visit your premises or if you interact with members of the public, we recommend that your business is covered by public liability insurance.

A certificate of currency is proof that you hold a current insurance policy.

Please contact us once you have paid for your policy and we will provide you with your certificate of currency.

What isn’t covered by public liability insurance varies from provider to provider. Typical exclusions can be:

• Injuries to your employees (this is covered under workers compensation insurance) 

• Damage to your property 

• Asbestos-related liabilities 

• Faulty workmanship 

• Professional advice 

• Product recalls 

• Fines and penalties 

• Contractual liability.

For full details on what is and isn’t covered, refer to the product disclosure statement (PDS).

If you have any questions about your policy, please get in touch.

Some businesses are required by their state authority to obtain public liability insurance before completing any work.

While it is not legally required for all companies, we recommend sole traders, contractors and other businesses consider obtaining public liability insurance.

Whether you work on multiple job sites, at a company office or in public areas, public liability insurance can cover your business wherever it conducts business activities.

In the trades industry, a subcontractor completing hired work may be covered by their client’s public liability insurance. However, if a subcontractor is negligent and leaves their tools out and injures a third party, then this claim may need to be made under the subcontractor’s policy.

We recommend contractors consider obtaining public liability insurance before performing work for another business.

• Limit of liability: This is the maximum amount an insured party may receive during the period of insurance, subject to any sub-limits, which may also apply. Policy options typically offer limits of liability ranging from $5 million to $20 million.

• Excess: This is the amount you will need to pay to make a claim on your insurance policy before the insurer then becomes liable.

• Inclusions: These are the situations or events covered by your insurance policy.

• Exclusions: These are the situations or events not covered by your insurance policy.

Here are two examples from a variety of claims that could occur:

1. During an AFL game, a player injures their knee after tripping on a pothole in the field. They sue the club for failing to provide a duty of care to the participants and their playing conditions.
2. After the game, a club member who is having a drink at the club house, falls when the bar stool they are sitting on collapses from underneath them. They suffer personal injury and sue the club for negligence.

To hear more about claims that could pertain to your business or industry, talk to one of our business brokers.

Both public and product liability differ to professional indemnity, another common category of insurance, which can help protect your business from legal action due to negligent advice

Public liability covers you in the event of injuries, damages or loss caused in your workplace or services you provide, whereas professional indemnity focuses on the advice you provide, which can happen even after you have completed the work.

Although different, both are equally important to consider if you provide professional advice or services in a specialist or consulting capacity, regardless of the size of your business, or location.