Public Liability Insurance NSW

What is Public Liability insurance?

Public Liability insurance is a form of general insurance that covers legal fees and compensation costs if a customer, member of the public, or a supplier claims against you for injury or damage to their property as a result of your alleged negligent business activity. It covers third-party claims that arise from incidents connected to your work, whether it’s at your business premises, a customer’s site, or in public spaces.

This cover may include legal defence costs, settlements, or compensation payments if your business is found legally responsible. It doesn’t cover damage to your own property or injuries to employees, which are protected by other types of insurance.

Public Liability insurance provides peace of mind that, if an accident occurs, your business is able to manage the financial and legal impact of civil claims.

What does Public Liability insurance cover in NSW?

• Third-party injury: Covers claims if a customer, supplier, or member of the public is accidentally injured due to your business activities.
• Third-party property damage: Covers accidental damage caused to someone else’s property while you’re working.
• Legal defence costs: Helps pay for legal representation and related court costs if a claim is made against your business.
• Compensation payouts: Covers settlement or compensation amounts you’re legally required to pay following a covered incident.
• Product-related incidents: May include claims arising from products you’ve sold, supplied, or repaired that cause injury or damage.
• Damage to your leased business premises: Offers limited cover for accidental damage to a rented commercial property caused by you or your employees.

Who needs Public Liability insurance in NSW?

Public Liability insurance is considered essential for many businesses that deal with clients, suppliers, or members of the public. In NSW, it may be particularly important for:

• Trades and contractors such as electricians, plumbers, and builders who work on client sites or public areas. A policy may be required to receive some trade licenses in certain states and territories.
• Retailers and cafés that interact directly with customers in physical locations.
• Professional services like consultants, real estate agents, and health practitioners who visit client premises.
• Market stallholders and event organisers who operate in public venues or temporary spaces.
• Businesses renting commercial premises often require proof of cover before leasing.
• Any business with public exposure, even small home-based operations that meet clients face-to-face.

Having Public Liability cover helps meet contractual requirements, protects your finances, and supports your ability to trade confidently within NSW.

Stamp duty concession for small businesses in NSW

Small businesses in New South Wales may be eligible for a stamp duty exemption or concession on certain types of business insurance, including Public Liability, Product Liability, and Professional Indemnity policies.

The NSW State Government offers this concession to help reduce insurance costs for small business owners. To qualify, your business must meet the definition of a “small business”, generally meaning an annual turnover of less than $2 million.

When purchasing or renewing a policy, you’ll usually be asked to complete a Small Business Declaration confirming your eligibility. Once declared, the exemption is applied automatically by the insurer, reducing your premium.

This initiative helps NSW small businesses access affordable protection while meeting their insurance obligations. For more information on the NSW Stamp Duty Concession, visit the Revenue NSW website.

Flexible cover options

BizCover offers flexible Public Liability insurance limits to suit the size and needs of your business. You can choose from cover options of $5 million, $10 million, or $20 million, depending on your risk exposure, contract requirements, and the nature of your work. This flexibility ensures you only pay for the protection that’s right for your business.

Factors that may impact your Public Liability needs and costs

• Contract or client requirements: Some contracts or local councils require a specific level of Public Liability cover before work can begin.
• Licensing requirements: Some occupations may be required to have minimum levels of Public Liability cover to receive and maintain a trade or professional license.
• Type of work you do: Higher-risk trades or industries, like construction or electrical, usually attract higher premiums than lower-risk professions.
• Business size and turnover: Larger businesses with more staff or higher revenue often pay more due to increased exposure.
• Where you work: Businesses operating in high-traffic areas or on client sites typically face greater third-party risk.
• Level of cover selected: Choosing a higher policy limit (e.g. $20 million) will increase your premium but provide broader protection.
• Claims history: A clean claims record can help reduce your premium, while past incidents may raise it.

These factors help insurers assess your risk and calculate a premium that reflects your business’s real-world exposure.