Public liability insurance protects Australian businesses from legal claims when third parties suffer injury or property damage due to business activities.
Public liability insurance is a core form of protection for Australian businesses that interact with the public. It covers legal costs and compensation if a customer, supplier, or member of the public is injured or their property is damaged as a result of your business operations.
This insurance is especially important for businesses with physical premises, mobile services, or public-facing activities. Whether someone slips on a wet floor in your shop or a tradesperson accidentally damages a client’s property, public liability insurance helps cover the financial fallout—including legal defence and settlement costs.
Typical coverage includes:
- Third-party injury: Medical costs and compensation for injuries caused by your business
- Third-party property damage: Repair or replacement costs for damaged property
- Legal defence costs: Even if you are not found liable
- Damage to property in your care: If third-party property is damaged while under your control
Common exclusions include:
- Injuries to employees (covered by workers compensation)
- Damage to your own property
- Professional advice errors (covered under professional indemnity)
- Deliberate or unlawful acts
Public liability insurance is not compulsory for all businesses, but it is often required by landlords, councils, and contractors. Many industries—such as trades, events, and health services—must hold cover to operate legally or meet licensing requirements.
With flexible limits typically ranging from $5 million to $20 million, businesses can tailor their cover to match their risk exposure and contractual obligations.
In short, public liability insurance is a vital safeguard. It protects your business from unexpected legal claims, supports continuity, and demonstrates a commitment to responsible operations.