The amount you need will depend on many different factors, including the extent of contact you have with your customers or members of the public, the industry you operate in and the type of work you perform, and whether there are any legislative or contractual requirements to hold a certain amount of cover.
Smaller home-based businesses may only require a minimum amount of cover (e.g. $5 million) if they have limited contact with other people. However, they may need a higher amount if they produce and/or sell products, to protect against injury or property damage that could arise as a result of those products. Conversely, businesses that deal with large amounts of foot traffic (bars, live venues, shopping centres, etc.) would generally need a higher level of cover, since having close contact with more people increases the chance of an accident occurring, hence they would be more likely to make a claim. In addition, contractors and trade workers often require a certain level of cover to meet their contractual obligations or to obtain specific licenses.
With the average premium around $80 per month for small businesses*, public liability insurance can be a cost-effective way to cover your business against legal expenses that could potentially run into the millions. So, why not see what’s out there with our business insurance comparison service? You can also talk to an expert on 1800 645 617.
*This average is based on data from BizCover customers in New South Wales – current as of August 2018.