Why Public Liability Matters

Public liability insurance protects Australian small businesses from the financial impact of third‑party injury or property damage claims. This article explains what public liability covers, common exclusions, how to choose the right limit for your industry and contracts, costs and claims insights, and practical risk‑reduction tips. New Wave Insurance helps Australian SMEs compare options and secure public and products liability cover that fits their needs.

What It Covers

Public liability insurance helps protect your Australian small business if a third party alleges injury or property damage arising from your business activities. Whether you run a café, retail shop, market stall, or you’re a tradie visiting client sites, this cover can respond to slips and trips, accidental property damage, and associated legal defence costs. Most policies in Australia are arranged as public and products liability, protecting you for incidents caused by your operations and products you sell or supply.

Public liability insurance is typically occurrence‑based in Australia, meaning it responds to incidents that happen during the policy period, even if the claim is made later. Common cover limits are $5 million, $10 million, or $20 million. Contract partners often specify the minimum limit: landlords may require $10 million, councils and events frequently ask for $20 million, and some commercial sites or government tenders will set their own thresholds. New Wave Insurance can guide you on a suitable limit for your industry and contract requirements.

Just as important is what public liability does not cover. Employee injuries are generally handled by state‑based workers compensation. Professional advice, design or consultancy risks require professional indemnity. Motor vehicle incidents are covered under your motor policy and CTP. Most policies exclude fines and penalties, asbestos, and gradual pollution, with limited exceptions. If you hold property, stock or tools, consider a broader business insurance pack alongside your liability cover to protect those assets.

Choosing the Right Cover

Start with risk and contract needs. Consider foot traffic, on‑site work, type of products, and any hot works or high‑risk activities. Review lease terms, council permits, supplier agreements and tender documents for mandatory limits and clauses. A retailer or café with steady customer flow might prioritise higher limits for injury claims, while a tradie working on commercial sites may need a higher limit to meet principal or head‑contractor requirements.

Look beyond the limit to policy features that matter in Australia. Useful inclusions can include care, custody and control sub‑limits for customers’ property, products liability for supplied goods, principals’ indemnity and cross liability, cover for subcontractors’ activities where required, and waiver of subrogation where contracts demand it. Your turnover, locations, staff count and claims history will influence price and availability. New Wave Insurance compares multiple insurers to match wording and endorsements to your industry risks.

Our process is straightforward: we review your operations, contracts and risk profile, then source quotes from reputable Australian insurers and underwriters. You’ll receive clear recommendations, a Product Disclosure Statement and Target Market Determination to help you decide. With New Wave Insurance, you get local support, claims advocacy, and cover tailored for Australian small businesses—so you can focus on running your business with confidence.

Costs, Claims and Tips

Premiums vary by industry, revenue, locations, claims history and the limit you choose. Low‑risk sole traders can often secure affordable public liability cover, while higher‑risk activities or larger turnover can increase cost. You can help manage premiums by choosing an appropriate limit, maintaining strong safety procedures, and demonstrating robust risk management—insurers in Australia value clear housekeeping, training records and incident logs.

Common claims include a customer slipping on a wet floor, a tradie accidentally damaging a client’s benchtop, or a market stall display injuring a passer‑by. If an incident occurs, prioritise safety, record what happened, gather witness details, preserve CCTV or photos, and notify us promptly. New Wave Insurance will guide you through lodgement, liaise with the insurer and help coordinate experts so your claim is handled efficiently and fairly.

Practical tips for Australian SMEs include using mats and clear signage, keeping walkways hazard‑free, training staff, documenting maintenance, and checking subcontractors hold their own public liability insurance. Review contracts for indemnity and hold‑harmless clauses, and make sure your policy aligns with those obligations. For a tailored public liability quote and advice on public and products liability, contact New Wave Insurance. General advice only; consider the PDS and TMD and whether the cover is right for your circumstances.