Liability can be a confusing term for small business owners. You’ve probably heard of Public Liability insurance, but what about Legal Liability?

In business, the phrase “liability exposure” isn’t just a buzzword – it’s a reality that every entrepreneur and small business faces. At its core, liability exposure can be defined as the potential financial or reputational harm a business might suffer due to unforeseen events or mishaps.

There are many legal liabilities that come with business ownership, which is why many business owners look for ways to reduce liability claims against their business and minimise Public Liability risks.

Public Liability? Tick. Professional Indemnity? Sorted. But there’s one business insurance that often flies under the radar — Statutory Liability insurance.

Every business faces risks, whether you’re a tradie, café owner, or market stall operator. That’s where Public and Product Liability insurance come in. Together, they help protect your business if your work or products cause injury or property damage to someone else.

Product Liability claims and Product Liability litigation against your business are no joke. In fact, they may severely impact your small business and damage the upstanding reputation you have worked so hard to create around it. Product Liability claims may even potentially push your business beyond the point of no return, which is why Product Liability risk management is a popular choice for many business owners.

As a small business owner, you may already hold Public Liability insurance*. But do you know exactly what your policy does and does not cover?

Public Liability and Professional Indemnity are two of the most common types of business insurance in Australia. They both cover compensation claims, but the main distinction is the types of events and risks covered.