How much does Public Liability Insurance cost?

What is the average cost of Public Liability insurance by industry?

One of the biggest factors influencing the cost of Public Liability insurance is the type of industry your business operates in, and the nature of your occupation. The higher an insurer determines the risk associated with your business potentially causing personal injury or property damage, the higher the premium. 

For example, cafes and restaurants typically present a higher risk due to a combination of dozens (if not hundreds) of people passing through the doors each day, and the number of things that could potentially go wrong which could lead to a public liability claim being made. This could include incidents like food poisoning, slips and falls on wet floors, and scalds caused by hot liquids. 

Meanwhile, an office-based business, such as an accounting firm or marketing agency, is typically considered less risky. This is generally due to the fact there is less foot traffic moving through the premises, and their work is less likely to cause injury or property damage to clients or members of the public. 

It is important to note that each insurance company assesses risk in different ways. What one insurer may consider as a high-risk occupation may not be considered as less risky by the next. This is partly due to the number of claims each insurance company has received for each given occupation.

As you can see from the data, businesses that operate in the wholesale, retail and health services industry have the highest base premium when compared to other industries, which is predominantly due to them being potentially liable for personal injury or property damage that may be caused by services they offer and products they manufacture or sell, under the liability provisions of the Australian Consumer Law. 

How does the location of my business affect my premium?

The location of your business will have an effect on the cost of your Public Liability policy, as each Australian state and territory charges varying levels of stamp duty on insurance premiums ranging from 0% to 11%. Therefore, depending on which state you are based in the stamp duty will be charged accordingly. If you have multiple offices throughout Australia the rate of stamp duty you pay will be determined by the state in which your head office is located.