Public Liability Insurance Australia

Public liability insurance helps protect Australian businesses if their activities accidentally cause injury to someone else or damage to their property. This article explains what public liability insurance covers and excludes, who needs it—from tradies and retailers to market stallholders and contractors—common limits, cost factors, and how New Wave Insurance can help small businesses compare quotes and get a certificate of currency fast.

What It Covers

Public liability insurance helps protect your business if your activities cause third‑party personal injury or property damage. It typically pays for legal defence costs and compensation you’re legally liable to pay, up to the policy limit. In Australia, many policies are written on a broadform basis and often include product liability, which responds to injury or damage caused by products you sell, supply, or manufacture.

Common examples include a customer tripping over your extension lead on site, a cleaner accidentally damaging a client’s timber flooring, a café patron slipping on a wet area, or a market food stall causing illness. Public liability can also satisfy lease or venue requirements (often called tenant’s liability) when you occupy commercial premises, and many councils or event organisers will ask for proof of cover before approving permits.

It won’t cover everything. Employee injuries are usually covered under workers compensation. Damage to your own tools, stock, or premises falls under business property cover. Professional advice or design errors require professional indemnity insurance. Motor vehicles are handled under commercial motor/CTP. Intentional acts, known defects, product recalls, and the cost to redo faulty workmanship are common exclusions. Always review the Product Disclosure Statement (PDS) for full terms, limits, excesses, and exclusions.

Who Needs It

Most businesses that interact with the public or work at client sites need public liability insurance. That includes tradies and contractors (electricians, plumbers, builders, painters), cleaners and gardeners, mobile services, retailers and cafés, hair and beauty salons, health and fitness professionals, market stallholders, events and pop‑ups, and home‑based businesses that have clients visiting. Even sole traders can face significant claims from a single incident.

It’s frequently a contractual requirement. Landlords, principal contractors, councils, and event organisers in NSW, Victoria, Queensland and other states often ask for a certificate of currency noting specific limits and sometimes the principal as an interested party. Common limits are $5 million, $10 million, and $20 million, chosen based on contract requirements, the scale of your operations, and the potential severity of claims.

If you work in high‑foot‑traffic environments, at heights, near expensive property, with heat, or around the public, you likely need higher limits. If you run a market stall or small consultancy, a lower limit might suffice unless contracts specify otherwise. The team at New Wave Insurance can help assess your risks, align cover to your business activities, and ensure your documentation meets tender and lease requirements.

Costs and Buying Tips

The cost of public liability insurance varies by industry risk, turnover, where you operate, staff numbers, claims history, your chosen limit of indemnity ($5m/$10m/$20m), and any high‑risk activities. Retailers and office‑based businesses may pay less than contractors working at heights or with heat. Adjusting your excess can influence premium, but make sure it remains affordable in the event of a claim.

To buy confidently: disclose all business activities (including subcontracting and any new services), select the limit your contracts require, and check exclusions, endorsements, and excesses. Ask about extensions like products liability, efficacy, tenant’s liability, and indemnity to principal if contracts require it. Ensure you can quickly obtain a certificate of currency to provide to landlords or site managers. Many small businesses package public liability with a business insurance pack to cover contents, stock, portable tools, glass, and business interruption.

New Wave Insurance is a trusted provider of small business insurance in Australia. Our experienced team compares public liability insurance options from leading insurers, helps you understand cover, excesses and exclusions, and organises certificates of currency fast—so you can get on site or open your doors sooner. Ready to get a quote or compare policies? Speak with New Wave Insurance today. This information is general in nature; consider the PDS and target market determination to ensure the cover is right for your needs.