What is Public Liability Insurance in Australia? A Complete Guide


This article will take a closer look at public liability insurance in Australia.

Knowing the potential risks or threats your company may face is important for business owners. Furthermore, protecting your reputation, operations, and valuable assets should be one of your top priorities.

When running your business, be certain that you are financially ready for any unforeseen incidents or accidents. Public liability insurance can help in situations like these.

Regarding business insurance, there is no form of coverage more popular than a public liability.

Public Liability Insurance in Australia

 What Is Public Liability Insurance?

Businesses that are open to the public are the most vulnerable to third-party accidents that result in costly public liability claims. It is important to have adequate coverage for your business in order to avoid high fees and continue normal business operations.

Public liability insurance in Australia protects your company from claims resulting from injuries or accidents caused by careless business operations to third parties.

It protects a business if an individual (including a customer, supplier, or public) gets injured or their property gets damaged while dealing with it. The insurance covers the costs of legal settlements and defense fees incurred by a business.

Check out other insurance tips here.

Inclusions And Exclusions Under Public Liability Insurance

Before purchasing any insurance policy, carefully read the Product Disclosure Statement or speak with the insurer to learn about the policy’s inclusions and exclusions.

What does Public Liability insurance Cover:

  • Legal and defense expenses incurred in settling a claim.
  • Loss or damage to your business goods
  • damage and loss to someone else’s property while performing your service.
  • Coverage for suppliers or tradespeople working for your company who were performing business operations at the time of the incident
  • Coverage for customers or any public member using your company’s services on your company’s premises
  • First-aid expenses incurred during the accident
  • Injuries sustained by others who visited your premises during the incident

 What doesn’t The Public Liability Insurance Cover:

  • Personal injury to you or your employees
  • damages that you or your employees did to your business property
  • Any Cyber-attacks on a business
  • Someone making allegations to tarnish your business’ reputation
  • Any Incidents that involve an Asbestos
  • Aircraft products
  • Punitive damages
  • Advertising Injury
  • Liquidated damages
  • Pollution
  • Product recalls and withdrawals
  • Any Events that take place before or after the policy duration
  • Costs to repair defective equipment.
  • Illegal activity
  • Contractual liability

Who Should Take Public Liability Insurance in Australia?

Before issuing licenses for particular trades or starting a job, it might be legally necessary to have public liability insurance. All companies that conduct business with the general public need it.

It is intended for companies and professionals who work with clients, customers, the general public, and organizations that use public spaces.

The insurance shields them from financial ruin if they are forced to compensate third parties for injuries or property damage sustained as a result of their business operations.

Public liability insurance is required in some industries, including:

  • Real estate
  • Entertainment
  • Transportation
  • Construction
  • Café owners and restaurateurs
  • Trades
  • Retail
  • Hospitality
  • Health

How much does public liability insurance in Australia cost?

The type of work you do, the location of your work, the size of your business, and the number of employees you have are all factors that can affect the cost of your public liability insurance. The higher your premiums, the riskier your work because there is a greater chance of something going wrong.

For example, if you have a fairly large business with a number of employees, you can expect to pay more in liability insurance premiums because you will need to cover your employees, and larger businesses are more likely to make a claim.

The amount you want to be insured for is another factor that will affect the cost of your public liability insurance. The higher the amount of insurance you have, the higher your premiums.

What will happen if you have no public liability insurance?

The majority of Australian States mandate the purchase of public liability insurance for companies and other (non-domestic) property occupiers, particularly those who are required to work under a state-issued license, like an electrical or plumbing contractor. For their members and clients, some industry associations and landlords also have insurance requirements.

If your company doesn’t have enough insurance, you run the risk of losing business from other companies. If a claim is made against you that your premium does not fully cover, you are also endangering the assets of your company.

When setting up your business insurance, including public liability, getting good advice is important to ensure you’re covered for any eventuality. You’ve worked hard to build your company, so it’s only natural that you’d want to protect it with adequate public liability insurance.

What is The Role of Public Liability Insurance in Every Industry

There is always the possibility of an accident occurring in your Australian business. With the right policy, you can continue to run or operate your business, knowing that if things go wrong, you will not end up in dire financial straits or struggling to make ends meet while paying off legal defense costs and claims. Many customers will ask if you have this type of business insurance because they will suffer as well if you are not insured.


For any business or profession, public liability insurance in Australia is a must-have. Getting insured is the only way to be prepared for accidents since they do occur.

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