Public Liability Insurance: Cover, Limits and Who Needs It
Public liability insurance pays compensation and legal costs if your business activities injure someone or damage their property. No Australian law makes it compulsory for every business, but some licences require it (Queensland and Victorian electrical contractors must hold at least $5 million) and landlords, councils, land managers and head contractors routinely ask for a certificate of currency, often for $10 million or $20 million, before you can work.
What you’ll get from this guide: Work out whether you need public liability insurance, how much cover your licence and contracts demand, what a policy will and will not pay for, and what to check before you buy.
- Public liability covers injury to other people and damage to their property caused by your business, plus defence costs. It does not cover your own injuries, your employees or your own tools.
- It is not compulsory by law for most businesses, but some licences require it: Queensland and Victorian electrical contractors must hold at least $5 million.
- Leases, councils, land managers and head contractors set their own minimums. Parks Victoria will not license a tour operator without $20 million of cover.
- Pick your limit from the highest amount any licence, landlord or client will ask for in the next 12 months, then check how little the step up may cost.
- Public liability does not cover bad advice (professional indemnity), and products are only covered if the policy includes products liability.
- Before you buy, check the occupation description, exclusions, excess, subcontractor conditions and the name on the certificate of currency.
Public liability insurance pays compensation and legal costs if your business injures someone or damages their property: a customer slips in your shop, your ladder breaks a client's window, a visitor trips on a cable in your home studio. It isn't compulsory by law for most Australian businesses, but some licences require it, and landlords, councils and head contractors will usually ask for proof of cover before you start work.
This is general information, not financial product advice, and it doesn't consider your circumstances. Read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for any policy you're considering, and consider getting advice. This page builds on our overview of business insurance; prices are covered in detail in how much public liability insurance costs.
Public liability at a glance
| Question | Short answer |
|---|---|
| What it pays for | Compensation you're legally liable to pay for injury to other people or damage to their property, plus defence costs |
| What it doesn't pay for | Your employees' injuries, your own property, professional advice, fixing your own faulty work, fines |
| Compulsory? | Not for most businesses. Required for some licences, such as electrical contractors in Queensland and Victoria (at least $5 million) |
| Who asks for it | Landlords, councils, land managers, venues, market organisers, head contractors and corporate or government clients |
| Usual limits sold direct | $5 million, $10 million or $20 million (NRMA also sells $15 million) |
| Proof of cover | A certificate of currency from your insurer |
| Typical price | BizCover customers paid an average of $39 a month in 2023–24; see our cost guide for occupation and state figures |
| Tax | Premiums are generally deductible for a business; GST-registered businesses can claim the GST component |
Limits and prices as published by the insurers and brokers named, checked 17 October 2026.
What does public liability insurance cover?
A public liability policy responds when someone outside your business (a customer, supplier, visitor or member of the public) says your business activities caused them injury, or damaged their property, and that you're legally liable. The insurer pays the compensation you owe, up to the policy limit, and the reasonable cost of defending the claim. Allianz notes it may pay defence costs even where you're found not to be at fault.
Most policies sold to small businesses cover four things:
- Injury to other people, including death and, under business.gov.au's description, emotional distress or recognised psychiatric illness.
- Damage to other people's property, such as a client's floor, window, car or equipment.
- Legal and defence costs for a covered claim.
- Property in your care, custody or control that you don't own, such as a customer's laptop you're repairing. Allianz, CGU and BizCover all list this, and sub-limits often apply.
Many policies add first aid expenses at the time of an incident (CGU and Finder mention this) and cover for people acting on your behalf. Finder notes some policies also insure directors, partners and employees for liability arising from the business. Finder also lists advertising liability among the covers some policies include, so check your schedule if you advertise heavily.
Claim scenarios: covered or not?
These examples come from insurers' and comparison sites' own pages. Whether a real claim is paid depends on the facts and your policy wording.
| What happens | Likely outcome under public liability | Why |
|---|---|---|
| A customer slips on a wet floor in your shop and breaks a wrist | Usually covered | Injury to a third party at your premises (Allianz's example) |
| Your ladder slips while painting and breaks a client's window | Usually covered | Damage to third-party property (CGU's example) |
| A painter applies a protective product that permanently stains new windows | Paid in BizCover's illustrative example: $27,000 to replace the windows | Property damage caused by a mistake on the job |
| A client visiting your home-based salon trips on a power cord | Usually covered, if you've declared the home business location | Allianz gives this example and says home businesses are covered when the location is provided |
| You damage a customer's goods while they're in your workshop | Often covered, up to a sub-limit | Property in your care, custody or control |
| A bakery customer becomes ill after eating a cake that wasn't refrigerated | Usually covered where the policy includes products liability | NRMA uses this as a public liability example; food you supply is also a product |
| Your employee hurts their back lifting stock | Not covered | Workers compensation covers employees |
| Your advice costs a client money but injures no one | Not covered | That's a professional indemnity claim |
| You have to redo a job because your workmanship was faulty | Not covered | The cost of fixing your own work is excluded; damage it causes to other property may be covered |
| Bleach splashes into a client's eye during a hair treatment | Finder gives this as an example public liability doesn't cover | Harm caused by the service itself can fall under professional indemnity or treatment cover, so check how your policy treats it |
| Your tools are stolen from the ute | Not covered | Your own property needs general property or tools cover |
What public liability doesn't cover
Every insurer publishes its own list. These exclusions appear on several insurers' pages; the right-hand column shows where cover (if any) usually comes from instead.
| Exclusion | What it means | Where to look instead |
|---|---|---|
| Injury to your employees | Allianz and CGU exclude your liability to injured workers | Workers compensation, generally compulsory once you employ workers (rules vary by state) |
| Your own property, tools and stock | The policy covers other people's property only | Business pack, contents or general property cover (see business insurance explained) |
| Professional advice or services | Financial loss from advice, design or professional work | Professional indemnity insurance |
| Faulty workmanship | Allianz excludes repair or replacement costs from incorrect work or defective materials | Generally your own cost; manage it with clear scopes and quality checks |
| Contractual liability | Liability you agree to in a contract that you wouldn't have under the general law | Read indemnity clauses before signing; see unfair contract terms |
| Fines, penalties and punitive damages | Allianz, CGU and BizCover exclude these however imposed | Generally not insurable |
| Asbestos | Allianz excludes any claim connected with asbestos "regardless of form or quantity" | Not covered by standard small business policies |
| Product recall and guarantees | CGU and BizCover exclude recall; Allianz excludes product guarantee or warranty liability | Specialist recall cover |
| Drones and aircraft products | Allianz excludes drones; CGU and BizCover exclude aircraft products | Aviation or drone liability cover |
| Gradual pollution | CGU and BizCover exclude it | Environmental liability cover |
| Events outside the policy period | BizCover lists events before or after the period of insurance | Keep cover continuous |
| Driving a vehicle | Injury caused by a registered vehicle is the job of compulsory third party (CTP) cover, which business.gov.au notes is often part of registration | CTP for injury; motor insurance for damage to other vehicles and property |
Two exclusions catch people out. Faulty workmanship means the insurer pays for the client's damaged property but not for redoing your work. Contractual liability means that if you sign a subcontract making you liable for things that weren't your fault, the policy may not follow you there.
Is public liability insurance compulsory?
Not by general law. business.gov.au lists public liability among the compulsory covers only because some states and territories require it for certain occupations. In practice it becomes compulsory through three routes: a licence condition, a permit condition, or a contract.
Where requirements come from
| Requirement source | Example | Minimum stated | Type | Where to check |
|---|---|---|---|---|
| Licensing law | Queensland electrical contractor licence | Public and products liability of at least $5 million plus consumer protection insurance of at least $50,000, in the licensed business's legal name (section 165, Electrical Safety Regulation) | Legal | WorkSafe Queensland |
| Licensing law | Victorian registered electrical contractor | Public liability of at least $5 million when carrying out or offering electrical contracting work | Legal | Energy Safe Victoria |
| Other licences | business.gov.au says some states and territories require it for certain occupations | Varies | Legal | Your licensing body; see do I need a business licence? |
| Public land managers | Parks Victoria tour operator licence | $20 million, with Parks Victoria's interest noted; a certificate for less isn't accepted | Licence condition | Parks Victoria |
| Councils | Permits for market stalls, footpath trading or events may require it | Set in the permit conditions, if any | Permit condition | Ask the council before you apply |
| Landlords | Commercial and retail leases | Set in the lease's insurance clause | Contract | Your lease; see our commercial lease guide |
| Head contractors and clients | Subcontracts, supply agreements, corporate and government contracts | Set by the contract. CGU says some corporate and government contracts stipulate a minimum; LegalVision's example clause is $20 million for any one claim | Contract | The insurance clause in the contract |
| Venues and event organisers | Stallholder, exhibitor and hire agreements may require it | Set by the organiser | Contract | The booking terms |
Requirements checked 17 October 2026.
Some comparison sites say South Australia and Tasmania make public liability compulsory for certain businesses, without naming them. We couldn't confirm which licences that refers to from state government sources, so if you hold a licence in any state, read its conditions or ask the regulator.
How much cover do you need: $5m, $10m or $20m?
Insurers selling direct mostly offer three limits. Allianz, CGU and BizCover sell $5 million, $10 million and $20 million, NRMA adds $15 million, and CGU and NRMA say to call if you need more. Brokers can arrange higher limits.
| Limit | Who it may suit, according to the insurers and brokers named | What to weigh |
|---|---|---|
| $5 million | Allianz says it may suffice for low-risk small businesses. It's the legal minimum for Queensland and Victorian electrical contractors | Many leases and contracts ask for more. Ausure, a broker, says brokers often recommend at least $10 million |
| $10 million | BizCover calls it its most popular level; upcover says it's the most common because contracts, leases and subcontract arrangements require it | A common middle ground. Check any sub-limits for property in your care |
| $20 million | Parks Victoria tour operators; Ausure mentions government contracts and work on government facilities | Costs more, but the step can be small: upcover's 2026 illustrative quotes rose about $60 a year for a handyman and $69 for an electrician |
| Over $20 million | Ausure says some international contracts require $50 million | Arrange by phone or through a broker |
Limits and quotes as published, checked 17 October 2026.
Choosing your limit in four steps
- List every document that sets a minimum. Your licence, lease, council permits, and the insurance clause in each current or likely client contract.
- Take the highest number. If one head contractor wants $20 million and everyone else wants $10 million, you need $20 million, because certificates are checked before you get on site.
- Look 12 months ahead. You may be able to increase cover mid-term, but a tender or new lease often needs the certificate before you can apply.
- Price the next step up. Ask for quotes at two limits. Our cost guide shows how small the difference can be for the same business.
If nobody sets a minimum, think about the worst realistic claim. AAMI notes that personal injury claims "can range from a few thousand dollars to several million dollars", and a serious injury to a young person can involve decades of lost earnings and care.
Certificate of currency: what it is and what to check
A certificate of currency is a short document from your insurer showing your policy is current. It's what landlords, councils and head contractors actually look at. Allianz says its certificate is emailed straight after purchase, BizCover says policy documents go straight to your inbox, and NRMA customers can download a certificate from their online account.
When you send a certificate, check:
- The insured name matches the entity in the contract (your company, not you personally, if you've set one up). Queensland's electrical licensing rules specifically require the policy to be in the legal name of the licensed business.
- The limit of indemnity is at least what the contract requires.
- The period of insurance covers the whole job or lease term, or you have a reminder to send the renewed certificate.
- Any party that must be "noted" appears. Parks Victoria, for example, requires its interest to be noted.
- Products liability is shown if you supply goods.
When you receive one from a subcontractor, check the same things, plus that the occupation on the policy matches the work they'll do for you.
Excess, occurrence basis and other policy terms
| Term | What it means | What to check |
|---|---|---|
| Limit of indemnity | The most the insurer pays. LegalVision's example contract clause expresses it as an amount "for any one claim" | Whether each limit applies per occurrence or as a total for the period (an aggregate), and whether the public and products sections differ |
| Excess | The amount you pay towards a claim. BizCover's published trade prices assume a $500 excess | Whether it applies to property damage only or every claim. A higher excess usually lowers the premium, so ask for quotes at two excess levels |
| Occurrence basis | Public liability generally responds to injury or damage that happens during the period of insurance; BizCover lists events before or after the policy period as not covered | Keep cover continuous. Professional indemnity works differently (claims made), as our PI guide explains |
| Territorial limits | BizCover says most of its policies cover you Australia-wide | Work overseas, or online sales to overseas customers, may need an extension |
| Excluded locations | Trade Risk says airports, railway stations, power plants, mines and marine ports are commonly excluded from standard policies | Declare any such sites before quoting |
| Principal's indemnity | The policy also protects the client or head contractor for liability arising from your work | All Trades Cover notes large jobs may require it; check the contract wording |
| Cross liability | Where several parties are insured on one policy, each is treated as if separately insured | Often requested alongside principal's indemnity |
| Interested party noting | A landlord or client is named on the policy and certificate | Required by Parks Victoria; leases and contracts may also ask for it |
Public liability vs professional indemnity vs product liability
| Public liability | Product liability | Professional indemnity | |
|---|---|---|---|
| Triggered by | Injury or property damage caused by your business activities | Injury or property damage caused by a product you make, sell, supply or repair | Financial loss caused by your advice, design or professional service |
| Example | A visitor trips on a cable in your office | A candle you sell causes a house fire | A tax error costs a client penalties |
| How it's usually sold | Often combined as "public and products liability" (Allianz, AAMI, Finder's listed policies) | Included in some public liability policies but not others: Compare the Market says public liability alone doesn't cover products | A separate policy |
| Basis | Generally occurrence (an event during the policy period) | Check the PDS; often a section of the same policy | Claims made |
| Who usually needs it | Anyone dealing with the public, visiting sites or having visitors | Anyone who makes, imports, sells or supplies goods, "even in the form of a repair or service" (business.gov.au) | Consultants, designers, bookkeepers, allied health, IT and other advice-based businesses |
| Our guide | This page | Product liability insurance | Professional indemnity insurance |
If you sell anything, check that the policy schedule includes products liability.
Contractors and subcontractors
If you're the subcontractor, expect the head contractor to ask for your certificate of currency, a minimum limit and sometimes a principal's indemnity extension before you're allowed on site. Read the insurance and indemnity clauses before you sign: an indemnity wider than your legal liability may fall under the contractual liability exclusion.
If you hire subcontractors, don't assume your policy covers them. Policies differ: some extend cover to subcontractors, others cover only your own liability for their work. upcover lists employees and subcontractors as a pricing factor, and Trade Risk says premiums may rise when 20% or more of revenue is paid to subcontractors. Collect each subcontractor's certificate of currency before work starts, keep a copy on file, and diarise the expiry date. If a subcontractor is injured, they may claim against you like any other third party, but if a workers compensation scheme treats them as your worker, the employee exclusion may come into play, so check how both policies respond.
Watch the employee line. Public liability excludes injury to your employees, and each state workers compensation scheme has its own rules on when a contractor counts as a worker. Our guides to employee vs contractor and workers compensation explain the tests.
Home-based businesses
Running the business from home doesn't remove the need for public liability if clients, couriers or contractors come to the house, or you work at other people's premises. Allianz says a home business is covered under its public liability section when you choose that cover and give your business location, and uses the example of a client tripping on a power cord in a home-based salon.
Don't rely on your home and contents policy: check its business-use exclusions, and tell your home insurer you're running a business so the rest of that cover stays valid. Our guide to home-based business rules covers council, strata and tax questions as well.
Buying direct, through a broker or online
| Direct from an insurer | Insurance broker | Online platform or comparison site | |
|---|---|---|---|
| Examples | AAMI, Allianz, CGU, NRMA sell online or by phone | Brokers listed with the National Insurance Brokers Association | BizCover; Compare the Market and Savvy sell BizCover's service |
| Who they act for | The insurer. Allianz says its staff don't give personal advice | Generally you; they must give you a Financial Services Guide explaining how they're paid | BizCover says it acts as agent of its insurance partners, not as your agent |
| How many insurers | One | Several, depending on the broker's panel | BizCover lists 13 insurer partners and says it doesn't compare all insurers |
| How they're paid | Premium | Usually commission from the insurer, sometimes a fee | Commission; Compare the Market says it earns commission from BizCover. Finder says promoted products are paid placements |
| May suit | Simple, low-risk businesses that fit a standard occupation | Businesses with staff, contracts that specify wording, unusual activities or past claims | Comparing several quotes quickly for a standard occupation |
Whichever route you choose, read the PDS and the policy schedule. Summary pages leave out the conditions and sub-limits that decide a claim.
What insurers ask when quoting
Have these answers ready. Getting them wrong can lead to a refused claim, and the PDS explains your duty of disclosure.
- Your occupation and exact activities, including anything outside the norm for your trade (Trade Risk flags work outside the industry norm). AAMI mentions working at height and offsite work.
- Annual turnover, usually estimated for the year ahead.
- Number of employees or wages.
- Payments to subcontractors and labour hire.
- Where you work: your postcode and any high-risk sites such as airports, rail, mines or ports.
- Products you make, import, sell or install, and where they're sold.
- The limit and excess you want.
- Claims and history: Ausure's quote form asks about the last five years, including previous claims, any claim declined for fraud, insolvency or bankruptcy, and criminal convictions.
- Interested parties to be noted on the policy.
Tax, GST and stamp duty on premiums
- Deductibility. The ATO lists insurance premiums, including public risk insurance, among the operating expenses a business can generally deduct in the income year they're incurred. If you prepay a policy that runs past 30 June, track the service period and ask your tax agent about timing; our guide to prepaid business expenses sets up the schedule.
- GST. Premiums include 10% GST. A GST-registered business can claim it back as a GST credit on the BAS (see our GST and BAS guide).
- Stamp duty. Each state adds insurance duty, from 0% in the ACT to 11% in South Australia, and it carries no GST credit. In NSW, small businesses with aggregated turnover under $2 million can claim an exemption on public and product liability by giving the insurer a small business declaration each year. Victoria's business insurance duty is 7% for policies taken out or renewed between 1 July 2026 and 30 June 2027. The full state table and a worked example are on our cost page.
- At claim time. Tell your insurer your GST status and input tax credit entitlement on the premium. The ATO's ruling GSTR 2006/10 explains that understating it can make part of a settlement a taxable supply. Our checklist for business insurance payouts covers the records to keep.
What does public liability insurance cost?
Price depends mostly on your occupation, turnover and limit. As published (checked 17 October 2026):
- BizCover's customers paid an average of $39 a month for public liability between 1 July 2023 and 30 June 2024.
- BizCover's cheapest trade quotes started at $43.62 a month for carpenters, electricians, handymen and painters and $60.11 for plumbers (April 2025 quotes; sole traders with revenue up to $50,000, $5 million cover, $500 excess).
- upcover's illustrative 2026 entry-level quotes for a handyman were about $180, $240 and $300 a year at $5 million, $10 million and $20 million.
Our public liability cost guide compiles every published figure we could find by occupation, industry, state and cover level, with the source and period for each, plus state stamp duty and a worked example.
If someone makes a claim against you
- Record what happened: date, time, place, names and contact details of the people involved and any witnesses, photos and any incident report.
- Notify your insurer promptly, through its claims line or online form. Allianz, for example, takes claims online 24/7, and BizCover says it helps customers lodge claims with the insurer.
- Talk to your insurer before admitting fault, offering payment or replying to a lawyer's letter. Policies set conditions about how claims are handled, so read the claims section of your PDS.
- Give your GST details. Tell the insurer whether you're registered for GST and your input tax credit entitlement on the premium, as the ATO's GSTR 2006/10 explains.
- Keep paying the excess and premium on time, and keep copies of every letter.
- If the claim is refused and you disagree, use the insurer's internal complaints process, then the Australian Financial Complaints Authority.
Pre-purchase checklist
- Occupation. The occupation on the quote describes everything you actually do, including side activities.
- Limit. It meets the highest requirement in your licence, lease, permits and contracts for the next 12 months.
- Products. The schedule says "public and products liability" if you make, sell, import, install or repair goods.
- Exclusions. You've read them in the PDS, especially any about work at height, hot work, working below ground, specific sites or materials you use.
- Excess. You know the amount and whether it applies to every claim.
- Property in your care. The sub-limit is enough for the most valuable customer item you hold at once.
- Subcontractors. You know how the policy treats them, and you have a process for collecting their certificates.
- Contract extensions. If a contract needs a principal's indemnity, cross liability or a noted interest, the policy provides it.
- Named insured. The policy is in the same legal name as your contracts and licence (company, trust or sole trader).
- Territory. Cover extends to everywhere you work.
- Disclosure. Every answer on the proposal is accurate, including past claims.
- Other covers. You've considered professional indemnity, workers compensation and cover for yourself (see sole trader insurance).
- Paperwork. You've saved the PDS, schedule and certificate of currency, and set a renewal reminder.
Red flags on a quote or policy
- The occupation is a near match rather than an exact one ("builder" when you do roofing).
- The limit is lower than a contract you've already signed.
- There's no products cover, but you sell or install goods.
- The policy is in your personal name, but your contracts are with your company.
- A subcontractor condition requires something you don't do, such as holding certificates for every subbie.
- The certificate you've been sent by a subcontractor has expired or names a different business.
- The quote seems unusually low because an activity you do has been left out.
Key takeaways
- Public liability covers injury to other people and damage to their property caused by your business, plus defence costs. It does not cover your own injuries, your employees or your own tools.
- It is not compulsory by law for most businesses, but some licences require it: Queensland and Victorian electrical contractors must hold at least $5 million.
- Leases, councils, land managers and head contractors set their own minimums. Parks Victoria will not license a tour operator without $20 million of cover.
- Pick your limit from the highest amount any licence, landlord or client will ask for in the next 12 months, then check how little the step up may cost.
- Public liability does not cover bad advice (professional indemnity), and products are only covered if the policy includes products liability.
- Before you buy, check the occupation description, exclusions, excess, subcontractor conditions and the name on the certificate of currency.
Where to get help
- business.gov.au: types of business insurance, with links to the APRA register of general insurers and ASIC's register of insurance brokers.
- Your licensing regulator: for example WorkSafe Queensland's Electrical Safety Office or Energy Safe Victoria, for any insurance condition on your licence.
- Moneysmart (ASIC): moneysmart.gov.au for independent guidance on buying insurance and reading a PDS.
- National Insurance Brokers Association: niba.com.au to find a broker.
- Australian Financial Complaints Authority: afca.org.au for free dispute resolution if an insurer or broker refuses a claim you think is covered.
- Your accountant or tax agent for deduction timing and GST, and your lawyer for indemnity and insurance clauses in leases and contracts before you sign.
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Where to go from here
Professional Indemnity Insurance: Rules, Cost and PL vs PI
Continue the “start with the covers most businesses are asked for” reading sequence.
20 min readSmall Business Insurance Australia: What You Need and Costs
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17 min readHow Much Is Public Liability Insurance? Costs in 2026
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24 min read
Frequently asked questions
Is public liability insurance compulsory in Australia?
No law requires every business to hold it. business.gov.au says some states and territories require it for certain occupations. Queensland electrical contractors need public and products liability of at least $5 million plus $50,000 of consumer protection insurance, and Victorian registered electrical contractors need at least $5 million. Outside licence rules, it becomes compulsory in practice when a lease, council permit, land manager or client contract asks for a certificate of currency.
Do I need public liability insurance as a sole trader?
Usually, in practice, even though the law rarely requires it. A sole trader and the business are the same legal person, so a successful injury or property damage claim can be paid from your personal assets. Clients, landlords and head contractors also commonly ask for a certificate of currency before you start. Policies are sold to sole traders; BizCover published starting prices from $43.62 a month for several trades (April 2025 quotes, $5 million cover).
What does public liability insurance not cover?
Common exclusions are injury to your own employees (workers compensation covers that), damage to your own property or tools, professional advice, the cost of fixing your own faulty work, liability you take on under a contract beyond what the law imposes, fines and punitive damages, and asbestos. Some policies also exclude drones, gradual pollution and product recall. Lists differ between insurers, so read the exclusions in the Product Disclosure Statement before you buy.
How much public liability cover do I need?
Start with the highest limit anyone you deal with requires: your licence, lease, council permit or client contract. Allianz, CGU and NRMA all sell $5 million, $10 million and $20 million limits direct, and NRMA also offers $15 million. If nobody sets a minimum, weigh the worst realistic injury claim against the extra premium. In upcover's 2026 illustrative quotes, moving a handyman from $10 million to $20 million added about $60 a year.
What is a certificate of currency?
A certificate of currency is a short document from your insurer confirming that your policy is in force. It usually shows the insured name, policy number, type of cover, limit of indemnity, period of insurance and any party whose interest is noted. Clients and landlords ask for it as proof of cover. Check that the name and limit match the contract, and send a fresh certificate after every renewal, because the old one expires with the policy.
What is the difference between public liability and professional indemnity insurance?
Public liability covers physical harm: injury to people or damage to their property caused by your business activities. Professional indemnity covers financial loss caused by your advice, design or professional service, such as a bookkeeping error that costs a client money. Public liability policies exclude professional advice, so consultants, designers and allied health practitioners who also see clients in person or work on site often need both policies.
Is public liability insurance tax deductible?
Yes, for a business. The ATO lists insurance premiums, including public risk insurance, among the operating expenses a business can generally deduct in the year they are incurred. If you are registered for GST you can also claim a GST credit for the GST included in the premium. Stamp duty is part of your cost but carries no GST credit. Ask your tax agent about timing if you pay a policy in advance.
Does my public liability insurance cover subcontractors?
Not automatically. Some policies extend to subcontractors working for you, some cover only your own liability for their work, and many insurers expect subcontractors to hold their own policy. Trade Risk, a broker, says premiums can rise when 20% or more of revenue is paid to subcontractors. Ask your insurer how subcontractors are treated, and collect each subcontractor's certificate of currency before work starts, checking the dates, limit and named insured.
Can I get public liability insurance for a one-off event or market day?
Some insurers and brokers sell short-term or single-event policies for markets, festivals, exhibitions and hired venues, while others only sell annual policies. If you trade at markets or events regularly, compare the cost of an annual policy, which covers every event in the year. Before buying either, ask the organiser what limit they require and whether their name must be noted on your certificate of currency.
General information only. This guide doesn't take your personal or business circumstances into account and isn't financial, legal or tax advice. Rates and thresholds change — check the official sources linked in this guide and get qualified advice where your circumstances require it.