Public liability insurance protects your business if a customer, supplier or member of the public is injured or their property is damaged because of your activities. It helps cover compensation payouts, medical bills and your legal defence if you’re found negligent — think a client slipping on a wet floor, or a tradie accidentally cracking a customer’s benchtop. It doesn’t replace workers’ compensation or cover damage to your own property.
Looking for the best public liability insurance in Australia? This guide explains what’s covered (and what’s not), who needs it and when it’s mandatory, how much cover to choose ($5m, $10m or $20m+), what affects price, and how to compare policies and providers. We’ll highlight leading insurers by business type, key add‑ons, savings tips and a quick claims checklist. First up: what it covers — and what it doesn’t.
What public liability insurance covers (and what it doesn’t)
At its core, public liability insurance helps when your business is alleged to have caused injury to a third party or damage to their property, and it pays for your legal defence and any compensation if you’re found negligent. Think a customer slipping on a freshly mopped floor, or a tradie accidentally cutting through wiring and damaging a client’s home. Exact inclusions vary by insurer and policy, so always read the Product Disclosure Statement.
- Typically covers: third‑party personal injury; third‑party property damage; legal and defence costs tied to a covered claim.
- Sometimes included: advertising liability (varies by insurer).
- Usually doesn’t cover: employee injuries (that’s workers’ compensation), damage to your own property, professional negligence (professional indemnity), purely contractual liability, or criminal/intentional acts. Product-related risks may sit under separate product liability cover—check your wording.
Choosing the best public liability insurance starts with knowing these boundaries.
Who needs public liability insurance in Australia
If your work brings you into contact with customers, clients, suppliers or the public — at your premises, theirs or at an event — you likely need public liability insurance. It’s relevant for sole traders and companies alike; even “low‑risk” offices can face slip‑and‑fall claims, and visiting a client site carries exposure. Whether you operate from a shopfront, a home office or on the road, this cover helps protect against everyday accidents.
- Tradies and contractors: e.g. electricians, plumbers, builders working at client sites.
- Retail, hospitality and food services: shops, cafés, restaurants with foot traffic.
- Mobile and home‑based businesses: that host or visit clients.
- Professional services on-site: consultants, photographers, IT support.
- Stallholders and event vendors: selling or interacting with the public.
Choosing the best public liability insurance starts with recognising your exposure.
When public liability insurance is mandatory
In Australia, public liability insurance can be compulsory due to law or as a condition of trade. Some licensed trades must hold cover; for example, in Victoria registered electrical contractors are required to carry at least $5 million in public liability. It’s also commonly required by organisers before you can trade at events or markets. Even when it’s not mandated, consumer bodies recommend cover for most businesses to manage everyday risk.
- Licensed trades: Certain state regulators require minimum cover (e.g. Victorian electricians: $5m).
- Events and markets: Organisers may insist on proof of public liability before approving a stall or vendor.
- Practical tip: If it’s required, make sure the limit and wording meet the regulator or organiser’s conditions.
How much cover you need: $5m vs $10m vs $20m (and higher)
Your limit should match any licence or contract requirements first, then reflect your exposure: how often you interact with the public, the scale of jobs you take on, and the value of property you work around. Across Australia, common public liability bands are $5m, $10m and $20m. Some insurers also offer higher limits — for example, AIG lists up to $50m and Chubb up to $100m, while brands like Allianz and CGU commonly offer $3m–$20m. If in doubt, choose the level that satisfies your biggest client or venue requirement.
- $5m (typical starting point): micro and low‑foot‑traffic operations; some licensed trades (e.g. Victorian electricians must hold at least $5m).
- $10m: busier retail, hospitality or tradies working across multiple sites.
- $20m+: events, market stalls, councils or corporates that stipulate higher limits, or larger operations seeking extra headroom.
What affects the cost of public liability insurance
Public liability premiums track two things: your risk and the cover you buy. Insurers look at what you do, how often you deal with the public, where you operate and any past claims when pricing the best public liability insurance for your needs. Price also shifts with the limit selected ($5m, $10m or $20m+) and your payment method.
- Business and industry type: higher public exposure often costs more.
- Business size and foot traffic: more staff/visitors can lift premiums.
- Location: higher‑risk areas can mean higher pricing.
- Claims history: previous claims can push premiums up.
- Cover limit: higher limits generally cost more.
How to compare public liability policies
To pick the best public liability insurance for your business, compare like‑for‑like. Start by noting any licence, client or venue requirements for minimum cover, then line up the policy wording (PDS) side by side. Focus on what’s covered, what’s excluded and how each insurer prices your risk, not just the headline premium.
- Cover limits and requirements: Does it meet your contract/licence needs ($5m, $10m, $20m+).
- Core inclusions: Third‑party injury, property damage, and legal/defence costs as standard.
- Extras/extensions: Is product liability included or separate? Is advertising liability included?
- Exclusions and conditions: Employee injuries, contractual liability and intentional acts are typically out.
- Excess and sub‑limits: Check the default excess and any limits hidden in the fine print.
- Industry fit: Some insurers price or specialise better for certain trades or sectors.
- Claims support: Look for clear processes and strong defence capability.
- Payment options: Monthly vs annual and any fees for paying by the month.
- Proof of cover: Easy access to a certificate of currency when clients ask.
How we evaluated Australia’s top providers
To identify Australia’s best public liability insurance providers, we reviewed Product Disclosure Statements and insurer pages, then cross‑checked independent comparison data (such as Canstar’s public tables). We assessed breadth of cover, clarity of exclusions, claims support, industry fit, payment flexibility and available limits. We noted common tiers ($5m–$20m) and verified higher‑limit options cited in the market (e.g., AIG up to $50m; Chubb up to $100m; Allianz/CGU up to $20m).
- Focused on inclusions (injury, property, legal/defence) and advertising liability.
- Checked buying and proof‑of‑cover ease (e.g., certificate of currency).
- Favoured transparent wording and clear claims pathways.
Where to buy: direct insurer, broker or comparison site
Where you buy your public liability insurance affects price, fit and support. You can purchase direct from an insurer, work with a licensed broker for tailored placement, or use a comparison site to see multiple brands at once. The best route hinges on your risk complexity, budget and how much guidance you want.
- Direct insurer: Fast online quotes and simple set‑up with one brand. Great for straightforward risks, but you won’t see alternatives that may fit or price better.
- Broker: Personal advice, help meeting contract/licence requirements and access to a wider market or higher limits. May charge a fee; still compare value.
- Comparison site: Quick, side‑by‑side quotes and limits from several insurers with flexible payments. Panels vary and don’t cover the whole market—read the PDS.
Rule of thumb: simple cover—compare; complex or high‑stakes contracts—broker; brand preference and easy renewals—go direct.
Australia’s top public liability insurance providers
Choosing the best public liability insurance comes down to fit, limits and claims support, not logos. Based on publicly available insurer pages and independent comparison data (e.g., Canstar’s public tables), these well‑known brands and specialist schemes stand out for clear cover limits, broad market presence and simple ways to get covered. Always verify the Product Disclosure Statement against your licence or contract needs.
- Allianz — public liability limits $3m, $10m or $20m; pay monthly at no extra charge.
- AAMI — quote and buy online; legal liability cover for negligence.
- CGU — $5m, $10m or $20m; buy online or over the phone.
- AIG — high limits available up to $50m across key industries.
- Chubb — very high limits available, up to $100m.
- GIO — up to $20m; legal costs and advertising injury noted.
- QBE — $10–$20m; personal injury, property damage and advertising liability.
- Vero — includes product recall and claims preparation among listed features.
- Zurich — third‑party injury, property damage and advertising liability cover.
- Duck for Cover — member public liability for performers and artists.
Best by business type: tradies, retail and hospitality, professionals, events
“Best” depends on fit. Start with your risks and any licence or venue requirements, then short‑list brands that openly cater to your occupation and limits. Use the cues below to narrow in on the best public liability insurance for your business type.
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Tradies and contractors: Look for clear cover for third‑party property damage on site and proof‑of‑cover on demand. Brands that list trade occupations include Allianz (trade contractors), CGU (trade), GIO (tradies) and Hollard (trade contractors). For major contracts needing higher limits, consider markets offering up to $50m (AIG) or $100m (Chubb).
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Retail and hospitality: Prioritise public injury cover, food service wording and fast certificates of currency. Allianz (retail, food services), GIO (retailers, food and beverage) and Hollard (retail, food services) call out these sectors. Advertising liability is noted by GIO and QBE.
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Professionals (offices/consultants): Low foot traffic but still public exposure. Allianz and Hollard list professional offices; GIO lists professionals. Pair with separate professional indemnity if you give advice.
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Events, stallholders and performers: Organisers may require cover and specific limits with a certificate of currency. Generalist options include QBE and Allianz; performers and artists can consider member cover via Duck for Cover. For large venues needing higher limits, AIG/Chubb tiers may suit.
Public liability vs professional indemnity vs product liability
These covers solve different problems. Public liability responds when your business activities cause third‑party injury or property damage. Professional indemnity protects you when your professional advice or services lead to a client’s financial loss. Product liability addresses injury or damage caused by products you make, sell or supply. Many businesses need a blend; when comparing the best public liability insurance, decide if PI and product liability should sit alongside it.
- Public liability: Third‑party injury/property damage and your legal defence. Example: a customer slips in your shop or a tradie damages a client’s kitchen.
- Professional indemnity: Loss from advice/services. Example: a consultant’s error costs a client money; PI helps cover the claim.
- Product liability: Harm from products supplied. Example: a faulty item injures a customer; cover may be bundled or separate—check the PDS.
Useful add-ons, extensions and common exclusions
Once you’ve nailed the basics, the fine print can sharpen your protection. When you compare the best public liability insurance, check which useful extensions are included by default and which you can add. Some brands include advertising liability as standard, others package product‑related protections separately. Just as important: know the exclusions that routinely apply across policies.
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Advertising liability: Sometimes included (e.g., noted by QBE, GIO, Zurich); covers certain advertising‑related injuries.
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Product liability: May be bundled or separate; essential if you make, sell or supply products.
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Product recall and claims preparation: Listed features with some providers (e.g., Vero) that can aid response and recovery.
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Higher limit options: Larger exposures may need higher tiers (market examples show AIG up to $50m; Chubb up to $100m).
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Common exclusions:
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Employee injuries: Covered under workers’ compensation, not public liability.
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Your own property: Damage to your property/equipment is generally excluded.
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Professional negligence: Requires separate professional indemnity cover.
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Contractual liability: Purely assumed liabilities are typically excluded.
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Criminal/intentional acts and hazardous activities: Generally not covered, as noted by consumer guidance sources.
How to save on your premium without underinsuring
The smartest way to save is to fine‑tune how your policy is set up, not strip out protection. Lock in the minimum limit your licences or contracts demand, make sure the core cover fits your actual risks, then use the levers below to trim cost without cutting value.
- Choose a higher excess: Trade a bigger out‑of‑pocket for a lower premium.
- Pay annually: Many insurers price annual payments more sharply than monthly.
- Compare multiple quotes: Panels and pricing vary by industry—always check the PDS.
- Right‑size your limit: Step up to $10m or $20m when clients/venues or your exposure require it.
- Lower your risk: Housekeeping, signage and staff training can reduce incidents and future premiums.
- Disclose accurately: Keep turnover, locations and activities up to date so you’re not rated for risks you don’t carry.
- Add only what you need: Include extensions (e.g., product or advertising liability) where relevant—skip what doesn’t apply.
What to do if there’s an incident: step-by-step claims guide
If something goes wrong, act quickly to protect people first, then your position under the policy. Most public liability wordings require you to notify the insurer promptly and never admit fault, so keep your notes factual and let the insurer handle liability.
- Make it safe: Get medical help, cordon off the area and prevent further damage.
- Don’t admit liability: Be courteous, but avoid apologies or promises to pay.
- Record the facts: Note time, location, what happened and who was involved.
- Collect evidence: Photograph the scene, hazards, damage and any signage.
- Get details: Names, contacts and statements from witnesses and the claimant.
- Preserve evidence: Keep CCTV, incident logs, faulty items and work orders.
- Notify your insurer/broker ASAP: Report the incident and follow their instructions.
- Provide documents: Invoices, maintenance logs, risk assessments and contracts.
- Direct all contact to your insurer: Don’t negotiate or sign anything.
- Co‑operate with the assessor: Meet deadlines and keep a claims diary of events and costs.
Checklist: what to have ready before you get quotes
Accurate quotes rely on clear, consistent inputs. Pull this info together first to speed up the process and get like‑for‑like pricing when you compare the best public liability insurance options across insurers, brokers or comparison sites.
- Business details: legal name, ABN, contacts.
- Activities and industry: where you operate, sub‑contractor use.
- Work settings: premises, client sites, markets/events.
- Cover limit and start date: $5m, $10m, $20m+.
- Size indicators: turnover, staff and foot traffic.
- Claims history: last five years.
- Contract/licence requirements: mandated limits/wording.
- Add‑ons and preferences: product/advertising liability; excess and payment.
Public liability insurance FAQs
Got questions while you hunt for the best public liability insurance? Start here. These quick answers cover what’s included, when you might need it, the right limits and a few money‑saving points. Always check the Product Disclosure Statement (PDS) for exact terms.
- What does it cover? Third‑party injury, third‑party property damage and your legal/defence costs. It typically excludes employee injuries, damage to your own property, contractual liability and intentional acts.
- Is it mandatory? Sometimes. Certain trades and licences require it (e.g. Victorian electricians must hold at least $5m). Events/markets often require proof of cover.
- How much cover do I need? Common limits are $5m, $10m and $20m. Higher tiers exist (market examples show AIG up to $50m; Chubb up to $100m). Match licence/contract requirements first.
- Do sole traders need it? It’s recommended anywhere you interact with the public; some industries make it a condition of trade.
- Is it tax‑deductible? Generally yes, as a business operating expense.
- Is product liability included? Sometimes bundled, sometimes separate—check your PDS.
- What about advertising liability? Often included by some insurers; wording varies.
- Can I pay monthly? Many insurers offer monthly payments; some (e.g. Allianz) note no extra charge for paying monthly.
How National Cover can help you compare and save
If you want sharp value without the run‑around, National Cover can help you compare and save on public liability. We use ASIC‑licensed analysts and data‑backed pricing to benchmark your risk, then back our quotes with a price‑beat guarantee. Our specialists keep it transparent, align cover to your real‑world needs, and can place your public liability alongside your commercial motor or fleet insurance for simpler management — with 365‑day support and expert claims assistance when you need it.
- Price‑beat guarantee: We’ll beat existing competitor quotes.
- Smart pricing: Data‑backed research by ASIC‑licensed analysts.
- One place, more cover: Public Liability, Marine Transit and Business Insurance.
- Guided support: Clear, tailored advice and easy switching any time.
Wrapping up
The best public liability insurance balances clear cover, the right limit for your risk ($5m, $10m, $20m+) and strong claims support. You’ve seen what’s included, when it’s mandatory, how to compare policies, and which providers and add‑ons suit different business types—plus how to claim if something goes wrong. Ready to protect your business without overpaying? Talk to specialists who can line up the right wording, meet licence or venue requirements, and sharpen the price. Compare options and lock in value with National Cover — data‑backed pricing, a price‑beat guarantee, and 365‑day support to keep your business moving.
