Public liability insurance is the cover that helps protect your business if a customer, supplier, or member of the public is injured or their property is damaged because of your business activities. Think slips in your shop, a tradie cracking a client’s benchtop, or coffee spilled on a client’s laptop. If a claim is made, this insurance can step in to cover compensation you’re legally liable to pay and the legal costs to defend the claim. It doesn’t usually cover your staff injuries or your own property—that’s workers’ compensation and property cover.
In this guide, you’ll learn exactly what public liability typically covers (and what it doesn’t), when it’s required, and how much protection $5m, $10m and $20m limits really provide. We’ll unpack what drives the price, how to compare quotes online side‑by‑side, and smart ways to trim premiums without risking underinsurance. You’ll also see how claims work, what information to have on hand for faster quotes, key differences from professional indemnity and product liability, and practical pointers for sole traders and home businesses—so you can choose with confidence.
What public liability insurance typically covers
At its core, public liability insurance helps when a third party claims your business caused them injury or damaged their property through negligent day‑to‑day activities. It can apply to incidents in your shop, on a client’s site, or anywhere your work is performed, and can help your business keep operating while a claim is managed.
- Third‑party property damage: Costs to repair or replace someone else’s property your business accidentally damages.
- Third‑party injury or death: Your legal liability if a member of the public is injured or killed due to your business activities.
- Compensation payouts: Amounts you’re ordered to pay for a covered claim.
- Legal defence costs: Reasonable legal fees to investigate, defend and settle covered claims.
Common exclusions and limits to watch for
Even the best policy has boundaries. Before you compare public liability insurance, read the Product Disclosure Statement (PDS) so you know what’s not covered and where limits apply. This helps you avoid nasty surprises at claim time and choose an appropriate limit of cover for your risk profile.
- Injured employees: Usually excluded; covered under workers’ compensation.
- Professional negligence: Excluded; this sits under professional indemnity insurance.
- Damage from your products: Typically excluded; needs product liability cover.
- Your own property: Public liability responds to third‑party property only.
- Contractual liability: Obligations you’ve assumed under contract are often excluded.
- Punitive or exemplary damages: Commonly not covered.
- Product recalls/withdrawals: Recall costs are typically excluded.
- Asbestos-related incidents: Common exclusion.
- Aircraft products/aviation risks: Usually excluded or insured separately.
Finally, check your selected limit (e.g., $5m, $10m, $20m) suits your industry, venues you work at, and client requirements.
Who needs public liability insurance (and when it’s compulsory)
If your business interacts with the public, you should consider public liability insurance. That includes sole traders and contractors on client sites, shopfronts with foot traffic (retail, cafés), mobile services, and any business where visitors come to your premises. Even office‑based practices face exposure if a client trips or property is accidentally damaged.
When it’s compulsory (or effectively required):
- By law in your state: There’s no national requirement, and rules vary. It’s not mandated by state law in many jurisdictions, while it’s compulsory for certain business types in South Australia and Tasmania, and may be required in specific industries in Queensland.
- By industry or licence: Some trades and professions require proof of cover to obtain or maintain a licence (e.g., electricians in some cases).
- By client or venue contracts: Large clients, centres, or organisers may stipulate minimum cover before you can start work.
If you’re unsure, compare public liability insurance options and check your state regulator and policy PDS before you commit.
How much cover do you need? $5m, $10m and $20m explained
Choosing a limit comes down to your worst‑case scenario and what clients or venues require. The limit is the maximum paid for a covered claim, including compensation and defence costs. Low‑risk outfits may need less, but injury claims can hit six figures. When you compare public liability insurance quotes, price a couple of limits and check contract minimums.
- $5m — Micro businesses with minimal public exposure; e.g., a florist with occasional visitors.
- $10m — A solid middle ground for many SMEs with regular public interaction or multi‑site work.
- $20m — Higher‑risk, busy venues or large contracts; often chosen for major events or organiser requirements.
What affects the cost of public liability insurance
Premiums reflect the risk your business presents and the cover you select. When you compare public liability insurance, insurers look at what you do, how big you are and where you operate to estimate the likelihood and potential size of third‑party injury or property damage claims.
- Industry and activities: Higher public foot traffic or hazardous work increases risk.
- Business size and turnover: More customers or projects typically mean higher exposure.
- Location and work sites: Higher‑risk areas or multiple sites can lift premiums.
- Limit of cover and options: Higher limits and optional extensions usually cost more.
- Excess chosen: A higher excess generally reduces the premium.
- Claims history: Prior claims can push costs up; a clean record helps.
- Payment frequency: Paying annually is often cheaper than monthly instalments.
How to compare public liability insurance quotes online
The fastest way to spot value is to compare public liability insurance quotes online on a true like‑for‑like basis. Standardise the limit and excess, then look past the price to what’s actually covered, key exclusions, and how claims support works. Always read the Product Disclosure Statement (PDS) before you buy.
- Set your target limit: Match client/venue requirements and risk ($5m, $10m or $20m).
- Equalise inputs: Use the same limit, excess, business activities, turnover and state so quotes are comparable.
- Check core cover: Third‑party injury, third‑party property damage, and legal defence costs for covered claims.
- Scan exclusions: Workers’ comp, product faults, professional negligence, punitive damages and asbestos are commonly excluded.
- Assess service: Claims lodgement options, response times, and support during disputes.
- Compare costs fairly: Note fees, monthly vs annual payments (annual is often cheaper), and any excess discounts.
- Add needed extras: If relevant, include separate product liability or professional indemnity alongside public liability.
Smart ways to reduce premiums without risking underinsurance
Cutting cost shouldn’t mean cutting cover. Focus on risk, structure and how you buy so you keep an adequate limit while trimming the price. Use these pointers when you compare public liability insurance quotes, and always confirm details in the PDS before you switch.
- Choose the right limit (not the lowest): Meet client/venue minimums and a realistic worst‑case.
- Adjust your excess: A higher excess generally lowers premiums—pick one you can afford at claim time.
- Pay annually: Often cheaper than monthly instalments.
- Tighten risk controls: Good housekeeping, clear walkways, cord management and spill signage reduce incidents and claims.
- Be precise about activities: Accurate descriptions avoid being rated for higher‑risk work you don’t do.
- Compare multiple insurers: Pricing varies by industry appetite; shop around.
- Keep a clean claims record: Prompt reporting and prevention can help premiums over time.
- Bundle thoughtfully: Packaging covers can simplify admin; ensure each policy still fits your needs.
Public liability vs professional indemnity vs product liability
These three policies solve different problems, and many businesses need more than one. Public liability responds when your day‑to‑day activities cause third‑party injury or property damage. Professional indemnity deals with financial loss caused by your advice or mistakes in your service. Product liability addresses injury or damage caused by products you manufacture, supply or sell. Public liability generally won’t cover professional negligence or product faults, so check the PDS and compare each cover on its own merits.
- Public liability: Third‑party injury/property damage from your operations.
- Professional indemnity: Loss from bad advice, errors or omissions in your service.
- Product liability: Injury/property damage caused by your products; recalls are typically excluded.
Sole traders, contractors and home businesses: what to know
If you’re self‑employed or running a business from home, you’re still exposed to third‑party injury and property damage claims—on client sites, in shared workspaces, and even when customers visit your home office. One mishap can be costly, so it’s worth comparing public liability insurance even if your business feels low‑risk.
- Match client/venue demands: Many contracts require proof of cover and set minimum limits (often $10m, sometimes $20m).
- Be clear about your work: Accurately describe activities, where you operate, and visitor exposure so you’re rated correctly.
- Know the gaps: Public liability won’t cover professional negligence or product faults—consider separate professional indemnity or product liability if relevant.
- Home businesses: Policies respond to business activities and third parties—not your own property or staff injuries.
- Have documents ready: Keep a current certificate of currency; some licences and principals will ask for it.
- Reduce risk: Good housekeeping, clear walkways and spill signage help prevent claims and keep premiums sharp when you compare quotes.
State and industry requirements in Australia
There’s no national law forcing every business to hold public liability insurance, but requirements can kick in through state rules, licences, landlords, venues and client contracts. Many trades and event operators must show proof of cover to get or keep a licence or to start work at a site. Always confirm the minimum limit specified by your regulator or contract before you buy.
- NSW — Not mandated by state law.
- VIC — Not mandated by state law.
- QLD — Not mandated by state law; may be required in certain industries.
- WA — Not mandated by state law.
- SA — Compulsory for certain business types.
- TAS — Compulsory for certain business types.
- ACT — Not mandated by state law.
- NT — Not mandated by state law.
Tip: Check your industry body or licensing authority and match any venue/client limit when you compare public liability insurance.
How claims work for public liability insurance
If someone alleges your business caused injury or property damage, your policy responds according to the steps set out in your Product Disclosure Statement (PDS). With National Cover you can lodge by email and access 365‑day assistance from a dedicated claims team. For accepted claims, public liability insurance can cover legal defence costs and compensation within your selected limit, helping you manage the situation and keep trading.
- Lodge promptly: Notify your insurer and submit details per the PDS (what happened, when/where, who was involved).
- Assessment: The insurer checks the facts against your policy terms, limits and exclusions.
- Cover applied: For accepted claims, legal defence costs and any compensation for covered claims are paid up to your limit.
- Excess payable: You may need to pay the excess noted on your schedule.
- Resolution: Claims may settle or be defended; slip‑and‑fall cases can reach significant sums (e.g., $100,000 in a common case study), so the right limit matters.
What you’ll need on hand to get a fast, accurate quote
Before you compare public liability insurance quotes online, line up the essentials. Having these ready helps insurers rate you correctly the first time, so you see like‑for‑like pricing and can buy without delays.
- Business details: Legal name, ABN and contact info.
- Activities: What you do and where you do it (premises, client sites, events).
- Location: State/territory and operating addresses.
- Size: Annual turnover and headcount (employees/contractors).
- Claims history: Past 5 years’ incidents, dates and amounts.
- Cover settings: Limit required ($5m, $10m, $20m), preferred excess, start date.
- Requirements: Licences and any client/venue minimum cover you must meet.
Cover by industry: trades, retail, hospitality, events and more
Risk looks different in every line of work, which is why it pays to compare public liability insurance by industry and match the limit to your exposure and any contract requirements. Start with how and where you interact with the public, then check the PDS for exclusions that might affect your day‑to‑day activities.
- Trades (plumbers, sparkies, carpenters): Client‑site property damage and trip hazards are common. Many principals and strata managers ask for proof of cover and set minimum limits.
- Retail (shops, salons): Slip‑and‑fall exposures and accidental damage to customers’ property. Shopping centres and landlords often specify a minimum limit.
- Hospitality (cafés, restaurants): High foot traffic, hot liquids and spills increase injury risk. Strong housekeeping can help control premiums.
- Events (stallholders, organisers): Crowds, temporary setups and shared spaces raise exposure; organisers and venues frequently require higher limits.
- Fitness/adventure (gyms, climbing, tours): Inherent injury risk typically means higher premiums and a need to review activity‑specific exclusions and suitable limits.
Bundling business cover with vehicles, transit and other policies
Bundling public liability with commercial motor and marine transit can streamline cover and may sharpen pricing. With National Cover’s mix of liability, vehicle (private, rideshare, taxi, courier, fleet) and transit insurance, you can align renewals and deal with one claims team. Always confirm each policy still meets your risks and contractual requirements.
- Consolidate admin: fewer invoices, clearer certificates.
- Reduce gaps: align cover across liability, vehicles and transit.
- Compare both ways: bundled vs standalone, and read the PDS.
Why compare with National Cover
Compare with National Cover for sharp pricing, clear cover and real support. Our data‑led approach and specialist team help you choose the right limit, avoid surprises in the PDS, and bundle essential business covers in one place.
- Price‑beat guarantee: on comparable quotes.
- Data‑backed pricing: from ASIC‑licensed analysts.
- 365‑day support: simple email claims, guided by experts.
- Bundle options: public liability with motor and marine transit.
Key policy terms in plain English
Insurance jargon can hide what you’re actually buying. When you compare public liability insurance quotes, use this plain‑English crib to decode the PDS and judge true like‑for‑like value. Understanding limits, excesses and exclusions upfront helps you avoid gaps and expensive surprises at claim time.
- Limit of liability: Maximum the insurer pays for a covered claim.
- Excess: The amount you pay out of pocket per covered claim.
- Defence costs: Legal fees to investigate/defend covered claims within your limit.
- Exclusions: What’s not covered (e.g., workers’ injuries, professional negligence, recalls).
- Territory and jurisdiction: Where cover applies and which courts’ laws apply.
- Certificate of Currency: Proof your policy is active and the limit you hold.
Key takeaways and next steps
Public liability insurance protects your business from third‑party injury and property damage claims, covering compensation and defence costs when things go wrong. The smart play is to pick the right limit ($5m, $10m, $20m), know the common exclusions (e.g., workers’ comp, professional negligence, product faults), and compare like‑for‑like quotes so you’re paying for value, not surprises. Tight risk controls, a sensible excess, and annual payment can keep premiums sharp, while strong claims support helps you stay operational.
- Define risk and minimums: Client/venue/state requirements often set your limit.
- Gather details: ABN, activities, locations, turnover, and claims history.
- Standardise quotes: Same limit, excess, activities, and start date.
- Read the PDS: Confirm core cover, exclusions, and defence costs.
- Tune the price: Choose a realistic excess; pay annually if possible.
- Buy and file: Secure your policy and Certificate of Currency.
- Review yearly: Adjust limits as contracts and exposure grow.
Ready to compare, save and get covered? Start with National Cover for sharp pricing and 365‑day claims support.
