Compare Public Liability Insurance

A public liability insurance policy typically covers a business’s legal liability if a third party suffers personal injury, death, or property damage due to the business’s activities. This compensation payments, legal defence costs, and claims arising from damage to third‑party property. Public liability insurance is designed to help protect a business from significant financial loss if a claim is made.

A public liability policy will usually cover:

• any loss or damage your business causes to third-party property
• your legal liability for the personal injury or death of a third party
• any compensation you’re ordered to pay as a result of a covered claim
• legal costs incurred in defending a covered claim.

The level of cover a business needs usually depends on its size, industry, and risk exposure. For example, a personal trainer might face a higher risk of injury to customers and may require a higher level of public liability cover, often resulting in higher premiums.

By contrast, a florist or other low‑risk operation may only need a lower level of cover. While public liability insurance is not legally required for every small business owner in Australia, it is strongly recommended, as even a single claim can have a serious impact on a business’s finances.

Check your product disclosure statement (PDS) for a list of what is included by your policy.

Public liability insurance in Australia usually doesn’t cover injury to employees (workers compensation), damage to your business property, intentional damage, professional advice or rectification costs for poor work.

Public liability insurance typically does not cover:

• Injured workers: Claims involving employees are usually covered under workers compensation insurance, not public liability.
• Punitive or exemplary damages: Additional damages awarded by a court to punish extreme or reckless behaviour.
• Product recalls or withdrawals: Costs associated with removing products from the market.
• Asbestos‑related claims: Incidents involving asbestos materials are commonly excluded and may require specialist asbestos liability insurance.
• Aircraft or aviation products: These are generally covered under separate aviation insurance policies.

Public liability requirements and exclusions can also vary by state and industry. It’s important to review your policy documents carefully and confirm any state‑specific requirements with your insurer before taking out cover.

Public liability insurance applies when a business’s activities cause injury or property damage to a third party. Meanwhile professional indemnity insurance covers claims arising from errors, omissions, or incorrect professional advice provided as part of a service.

Businesses that provide advice or specialised services may need both types of cover, particularly if their personal circumstances, industry requirements, or type of business expose them to multiple forms of liability. In some cases, insurers offer combined public and product liability policies alongside professional indemnity cover.

Yes, you can. Anyone in business can get public liability insurance, including sole traders and self-employed individuals. In fact, those who are self-employed probably face enough costs already without adding on the potential costs of a public liability claim.

You can find out more in our guide to business insurance for sole traders.

No, public liability insurance does not cover claims for damages or injuries caused by the products your business makes, supplies or sells.

Specific damages caused by a product are covered by product liability insurance. This insurance covers the related legal fees that might arise if your product malfunctions or hurts someone.

Public liability insurance is not compulsory for all businesses in Australia under federal law. However, some industries and professions are required to hold public liability insurance, and requirements can vary by state and territory, particularly for licensed trades and high‑risk activities.

At a state and territory level:

• New South Wales (NSW): Not mandated by state law¹
• Victoria (VIC): Not mandated by state law²
• Queensland (QLD): Not mandated by state law, but may be required for certain industries and licences³
• Western Australia (WA): Not mandated by state law⁴
• South Australia (SA): Compulsory for certain types of businesses⁵
• Tasmania (TAS): Compulsory for certain types of businesses⁶
• Australian Capital Territory (ACT): Not mandated by territory law⁷
• Northern Territory (NT): Not mandated by territory law⁸

While public liability insurance is not a legal requirement for every business, it is often mandatory for tradies, including licensed occupations such as electricians and plumbers, to meet licensing, council, or contract requirements. Even when not compulsory, public liability insurance can play an important role in protecting a business against costly third‑party injury or property damage claims.

Public liability insurance premiums vary depending on things such as the limits, optional coverage, nature, turnover and size of your business, as well as the industry in which your company operates. Typically, the larger your business and the higher its risk for causing injury or damage, the higher the cost of public liability insurance.

For example, a small cafe owner may pay a lower premium due to their smaller size and lower business demand, which may result in lower risk. Someone running a large construction company will typically pay much more to insure their business against public liability claims because of their larger workforce and risk to the public.

To find out how much you could potentially pay for public liability insurance, you can compare your options and get a quote with us.