Public Liability Insurance

Public liability insurance covers your legal liability if a third party - a customer, visitor, or member of the public - is injured or their property is damaged because of your business activities.

It’s one of the most common and widely required types of business insurance in Australia. If you interact with the public in any way, chances are you need it.

Why It Matters

• A single injury claim from a customer or member of the public can result in legal costs and compensation payouts that could bankrupt a small business.
• Many contracts, leases, and government tenders require you to hold a minimum level of public liability cover (commonly $10 million or $20 million).
• It covers both the compensation payout and the legal costs of defending the claim, even if the claim is unsuccessful.
• It applies whether you work from a shop, an office, a client’s site, or from home.

Show Transcript

Public liability covers damage to someone else's property, physical damage, and it's an insurance that most people will need because you might have a physical presence in an office space or you might have a lease that requires it. You might be out there in the public and the line of work that you do potentially puts other people's property at risk or other people at risk with injury.

What It Covers

• Third-party bodily injury - a customer slips on a wet floor in your shop, a visitor trips over equipment at your worksite, or a passerby is injured during your operations.
• Third-party property damage - your work accidentally damages a client’s property, or your equipment causes damage to a public space.
• Legal defence costs - the cost of defending a claim, including lawyer fees and court costs.
• Compensation payouts - the amount awarded to the injured party if the claim is successful.

Simple Examples

• A cafe customer burns themselves on a faulty coffee machine. The customer sues for medical expenses and lost income.
• An electrician accidentally damages a client’s wall during a job. The client claims the cost of repairs.
• A delivery driver drops a heavy item on a customer’s driveway, cracking the concrete. The property owner claims the replacement cost.

Common Mistakes or Misunderstandings

• Thinking it covers your own injuries. Public liability is for third parties only. Your own injuries are covered by workers compensation.
• Assuming your landlord’s insurance covers you. A landlord’s policy protects the landlord, not your business activities.
• Choosing too low a limit. Many contracts require $10 million or $20 million. Check your contracts before you set your limit.
• Confusing it with professional indemnity. PL covers physical injury and property damage. PI covers financial loss from your professional advice.

When to Speak to a Broker

If you’re unsure what limit you need, want to understand what’s excluded, or need a certificate of currency for a contract or lease, a broker can help you get the right cover quickly.

Need help?

Want to make sure your public liability insurance meets your contract requirements? Reach out to Tank Insurance and we’ll sort it out.

Related Terms

• Insurance Premium - Your PL premium is based on your industry, revenue, and claims history.
• Certificate of Currency - The document that proves your PL cover is active, commonly required by head contractors and landlords.
• Excess - The amount you pay out of pocket when you make a PL claim.