What is Public Liability insurance?
Public Liability insurance covers you if a third party claims that your negligent business activities caused them injury or property damage. It can cover the cost of legal defence fees, compensation, and settlement expenses if you’re found legally responsible.
For example, if a customer slips in your shop or a contractor accidentally damages a client’s property, your policy may help cover the related costs. It’s one of the most common types of business cover in Australia and is often a requirement for contracts or trade licences.
Choosing the right level of cover for your business
The amount of Public Liability insurance your business may need depends on your level of risk, your industry, and any legal or contractual requirements.
Many contracts specify a minimum level of cover you must hold before work can begin. Likewise, some industry bodies and professional associations require members to maintain a set amount of Public Liability insurance for licensing or membership purposes. It is important that you take the time to consider the scale of work that you do, the number of people you deal with and the level of financial protection you may need if a claim were made against you. The right level of cover could help protect your business from unexpected costs.
Flexible cover levels
With BizCover, you can choose from three levels of Public Liability cover:
- $5 million
- $10 million
- $20 million
A $5 million limit generally suits sole traders or small office-based businesses that face lower public interaction or minimal on-site risk, such as consultants, designers, or bookkeepers.
A $10 million limit is often chosen by small- to medium-sized businesses that work directly with clients or operate from shared premises, like retailers, cafés, or trades with regular site visits.
A $20 million limit tends to suit higher-risk industries such as construction, manufacturing, hospitality, and cleaning services, where the potential cost of a claim could be significant.
This is general information only and is not personal advice. The appropriate level of cover for your business depends on your on your specific circumstances such as, contract terms, industry requirements, and the scale of work you do.
How do I know the minimum coverage requirements for my business?
In Australia, there’s no universal legal minimum for Public Liability insurance, generally speaking. However, many contracts and licences do set specific minimums. For example, electrical licences in most states and territories [SM1] require you to carry at least $5 million of cover or more. Before purchasing cover, you should check any contract you are entering into, the industry you operate in, and whether a state or local licensing body imposes a minimum level. This helps you choose a cover level that aligns with your business risk, keeps your arrangements compliant, and supports your goal of obtaining flexible business insurance that meets your needs.
How to get the right Public Liability insurance for your business
The following steps can help you think through your Public Liability insurance needs:
- Know your risks: Think about who you deal with, where you work, and what could go wrong.
- Check requirements: Review contracts or licences that may set minimum cover levels.
- Compare options: Look at what’s included, not just the price. The cheapest policy isn’t always the best fit.
- Set your cover amount: Choose from $5m, $10m, or $20m, depending on your business size and risk.
- Buy online: With BizCover, you can compare quotes from multiple insurers and get covered in minutes—no paperwork, no waiting.
Choosing suitable business insurance for your needs keeps things simple and protects your work when the unexpected happens.
