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Public Liability Insurance
Keep your business protected from third-party injury and property damage claim.
A public liability claim can expose your business to significant compensation and legal costs. As a public liability insurance broker, VIM Cover arranges insurance that may help protect your business if someone outside your business is injured or their property is damaged due to your business activities. We compare suitable cover from our panel of Australian insurers and clearly explain the differences.
We help you make sure:
- Your policy reflects the work your business actually does
- Your cover limit meets relevant contract, licensing and permit requirements
- You have support from someone who understands your policy if you need to make a claim
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Our Insurers
We arrange public liability insurance through a panel of leading Australian insurers.
The COVER
What is public liability insurance?
If someone outside your business is injured or their property is damaged as a result of your negligence or business activities, public liability insurance may help cover your business.
It may respond if a customer slips in your shop, a tool damages a client’s property or a member of the public trips over equipment you have left on a footpath.
Not all Australian businesses are required to have public liability insurance. However, it may be necessary for some occupations, licences, permits or activities. It is also frequently requested by landlords, councils, shopping centres, event organisers and head contractors.
Public liability and products liability are frequently combined into one policy. Products liability may respond when something your business has manufactured, sold, supplied, installed or repaired causes injury or property damage after it has left your possession or control.
Public liability insurance does not normally extend to your employees, your own property or claims arising from professional advice. Separate insurance may be needed for those risks.
Cover is subject to the terms, conditions, limits and exclusions of the relevant policy.
Do you need it?
Is public liability insurance compulsory in Australia?
Not all Australian businesses are required to have public liability insurance. Some states and territories require it for specific licensed occupations or activities. It may also be required under:
- Commercial lease agreements
- Council permits and street-trading licences
- Shopping centre and venue agreements
- Head contractor agreements
- Government contracts
- Event and venue-hire conditions
- Industry licences or association memberships
Requirements depend on your occupation, location and activities. Review the conditions that apply to your business or discuss the insurance requirements in your contract, licence or permit with us.
What's Included
What does public liability insurance cover?
We tailor your policy to your business, as each is unique. A typical commercial property policy can include:
Compensation your business becomes legally liable to pay due to the injury or death of someone who is not an employee.
The cost of repairing or replacing property belonging to someone else that your business becomes legally liable for damaging.
Legal defence costs
Reasonable legal and investigation expenses involved in defending an insured claim, subject to the policy wording and the insurer’s consent.
Compensation and settlements
Compensation your business becomes legally liable to pay, or a settlement agreed with the insurer, up to the applicable policy limit.
Property under your care, custody or control
Some policies offer limited cover for property belonging to someone else that your business is working on or looking after. Conditions and sub-limits commonly apply.
Products liability
Claims for injury or property damage resulting from products your business manufactured, sold, supplied, installed or repaired.
What's not covered?
Public liability insurance does not cover every business risk. Common exclusions and separate areas of cover include:
Work-related injuries to employees are typically dealt with under the relevant state or territory workers compensation scheme.
Property, business package or portable equipment insurance may be needed for your buildings, stock, tools and equipment.
Professional advice
Professional indemnity insurance may be required for claims resulting from professional advice, designs or services.
The cost of correcting defective work is often excluded. Resulting damage may be covered in some circumstances, depending on the policy and the claim.
Liability accepted under a contract that would not otherwise exist at law may be excluded.
Other policy exclusions
Policies may exclude or restrict claims involving asbestos, pollution, aircraft, deliberate acts, fines, penalties and other specified activities.
Each policy is different. We help you understand the important conditions and exclusions before you choose your cover. Cover is subject to the terms, conditions, limits and exclusions of the relevant policy.
Who We Insure
Who needs public liability insurance?
Public liability insurance should be considered by any business that comes into contact with customers, clients, members of the public or other people’s property.
Businesses that commonly arrange cover include:
Trades and construction
Builders, carpenters, electricians, plumbers, painters, roofers, concreters, tilers, handymen and air-conditioning contractors.
Retail, food and hospitality
Cafés, restaurants, food trucks, market stallholders, retail shops, bakeries and caterers.
Health, beauty and fitness
Hairdressers, barbers, beauty clinics, massage therapists, allied health practitioners, personal trainers and yoga or Pilates studios.
Services and other businesses
Cleaners, landscapers, gardeners, photographers, videographers, event organisers, mobile mechanics, pet groomers, dog walkers, consultants, manufacturers, importers and wholesalers.
Your occupation is not listed? Talk to us about the work you do and the cover available.
Whats the difference?
Public liability versus products liability
A frequent question we receive from business owners is who is responsible for insuring what. The quick answer: it depends on your lease.
As a general guide:
| Public liability | Products liability | |
|---|---|---|
| What may trigger it | Your business activities or premises | A product you made, sold, supplied, installed or repaired |
| Typical example | A customer slips in your café | A customer is injured by a product you imported and sold |
| When it normally applies | During your business operations | After the product has left your possession or control |
| Who commonly needs it | Businesses with premises, worksites or public contact | Retailers, wholesalers, manufacturers, importers and installers |
If your business makes, imports, sells, supplies, installs or repairs products, it is important to ensure your policy provides appropriate products liability cover.
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WHAT DO I NEED?
How much public liability cover do you need?
Common public liability limits include:
$5 million
May be appropriate for some smaller or lower-risk businesses, depending on their activities and contractual requirements.
$10 million
A frequently requested cover limit for commercial leases, venues and contractor agreements.
$20 million
Often requested for council projects, government contracts, shopping centres, major construction projects and larger events.
The right limit will depend on your business risks and any requirements imposed by clients, landlords, regulators or head contractors.
Always check your contract, licence or permit before selecting a limit. If your insurance does not cover the full amount of a claim, your business could be liable for the uninsured amount.
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Whats the difference?
Public liability versus professional indemnity
Public liability typically relates to third-party injury and property damage.
Professional indemnity is usually associated with claims arising from professional advice or services, including errors, omissions or breaches of professional duty.
| Public liability | Professional indemnity | |
|---|---|---|
| Generally covers | Third-party injury and property damage | Claims arising from professional advice or services |
| Typical example | A client trips over your equipment on site | An error in your design causes the client financial loss |
| Who commonly needs it | Businesses with premises, worksites or public contact | Consultants, designers, engineers, accountants and allied health professionals |
Some businesses need both types of insurance because they provide advice while also working at client premises or dealing with the public.
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PRICING
How much does public liability insurance cost?
There is no standard price for public liability insurance. Premiums vary based on the nature of your business, its activities and the level of risk involved.
Factors that may affect your premium include:
- Your occupation and business activities
- Your annual turnover
- The number of employees and subcontractors
- Your chosen cover limit
- Your claims history
- Where your business operates
- Work involving heights, heat or hazardous activities
- The goods you produce, sell, supply or install
- Relevant policy inclusions, exclusions and excesses
- Whether the cover forms part of a broader business insurance package
Two businesses in the same industry can have different premiums because of their turnover, services, claims history and working conditions.
The most accurate way to determine the cost is to obtain a quote based on your business.
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Why US
Why businesses choose VIM Cover
VIM Cover is a business insurance broker. We arrange cover on your behalf and compare suitable options from our panel of Australian insurers.
- We compare options from several insurers rather than offering one insurance product
- We can review the insurance requirements in your contracts
- We explain important differences, conditions and exclusions
- We support you through the claims process and liaise with the insurer
- You deal with someone who understands your business and policy
- No hidden policies or surprises
- Real-world advice for your premises
- Real support from quote through to claim
- Australia-wide protection
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“My experience with VIM was nothing but professional”
– Laura Evans
WHAT ABOUT SMALL BUSINESSES?
Public liability insurance for sole traders and small businesses
Public liability insurance provides the same general type of protection for sole traders and small businesses, but the policy, premium and conditions will vary depending on the work being carried out.
A sole trader and their business are the same legal entity. This means a claim against the business may also expose the sole trader’s personal finances and assets.
Public liability insurance may help protect a sole trader if their business causes injury or property damage to another person. Cover may also be required by clients, landlords, councils or head contractors.
When applying, it is important to describe your work accurately. Selecting the closest occupation without disclosing everything your business does may affect your cover.
In the United States, broadly similar cover is usually called general liability insurance. In Australia, the common term is public liability insurance.
Related INSURANCE
Other business insurance to consider
Depending on your activities and risks, you may also need:
Business insurance packages, Professional indemnity insurance, Commercial property insurance, Management liability insurance
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Trusted by Australian businesses
We are responsive, easy to deal with and results-oriented, which is why businesses select VIM Cover. We do our best to get the right cover at the right price, and we support it when it matters most.
FAQ
Frequently asked questions
Is public liability insurance compulsory in Australia?
Not all Australian businesses are required to have public liability insurance. However, it may be required by law for certain occupations, licences, permits or activities. It is also frequently required under leases, contracts and venue agreements.
How much public liability insurance do I need?
Common cover limits include $5 million, $10 million and $20 million. The right limit will depend on your risks and any requirements imposed by clients, landlords, councils, regulators or head contractors.e, and without it you are leaving your most valuable assets vulnerable. Workers compensation, on the other hand, is required when you have employees.
How much does public liability insurance cost?
The cost will vary depending on your occupation, turnover, location, claims history, number of workers and chosen cover limit. The best way to determine the cost is to request a quote for your business.
Do sole traders need public liability insurance?
Public liability insurance is not automatically required simply because you are a sole trader. However, it may be required for your occupation or under a contract, licence, lease or permit.
Because a sole trader and their business are the same legal entity, an uninsured liability claim may also affect the sole trader personally.
Are employees covered by public liability insurance?
Work-related injuries to employees are typically not covered by public liability insurance. Businesses with employees generally need workers compensation insurance in line with their state or territory requirements.
What is the difference between public liability and products liability?
Public liability usually relates to injury or property damage arising from your business activities or premises.
Products liability generally relates to injury or property damage resulting from something your business manufactured, sold, supplied, installed or repaired after it left your possession or control.
The two covers are often included under the same policy.
What is the difference between public liability and professional indemnity?
Public liability typically relates to third-party injury and property damage.
Professional indemnity typically protects against claims arising from errors, omissions or breaches of professional duty in the advice or services you provide.
Depending on their activities, some businesses need both.
Am I covered if I operate my business from home?
Business activities may not be covered or may be subject to limitations under home and contents insurance.
If customers, suppliers or couriers visit your home, or you work at other people’s properties, talk to a broker about how your home insurance and business cover work together.
Should subcontractors have their own public liability insurance?
It is common for subcontractors to carry their own public liability insurance. Many head contractors will not allow subcontractors to begin work without a current certificate of currency.
Arrangements differ, so both parties should review their contracts and insurance policies.
How quickly can I get a certificate of currency?
If your policy was arranged by VIM Cover, we can generate your certificate once the policy has been paid. Payment timing is usually what determines how quickly you receive it, so tell us your deadline early if you need it for a site induction, tender or lease.
What is not covered by public liability insurance?
Common exclusions may include employee injuries, damage to your own property, the cost of correcting faulty workmanship, professional advice, certain contractual liabilities, deliberate acts, asbestos, pollution, fines and penalties.
Each insurer and policy will have different exclusions, so check the relevant policy documents.
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How It Works
Get covered with VIM Cover
Tell us about your business and we will compare suitable options from our panel of Australian insurers.
Get clear advice and help selecting cover that suits your business.
Have clear guidance, customised options and cover structured from the outset.
5/5 from Australian business owners
Independent brokers
Support at claim time