How are public liability insurance brokers paid?

Public liability insurance brokers typically receive a commission from the insurer when you purchase a policy through them. This commission is usually a percentage of your premium. Some brokers may also charge a service fee directly to you in addition to or instead of a commission from the insurer. It is a legal requirement for your broker to disclose how they are paid in their Financial Services Guide. This transparency ensures you understand the full cost structure of engaging their services.

Are public liability insurance brokers regulated in Australia?

Yes public liability insurance brokers are regulated in Australia. They must hold an Australian Financial Services Licence AFSL issued by the Australian Securities and Investments Commission ASIC. This licence ensures brokers meet specific standards for training, conduct and compliance. ASIC’s regulation provides a level of protection for consumers and promotes ethical practices within the insurance industry. The National Insurance Brokers Association NIBA also sets professional standards and a code of practice for its members.

What information do I need to give my public liability insurance broker?

To get the most accurate and suitable public liability insurance quotes, you will need to provide your broker with detailed information about your business. This includes your business name and structure, its primary activities, your annual turnover, the number of employees you have and any specific risks associated with your industry or operations. You should also inform them about your claims history, any previous insurance policies you have held and the level of cover you are considering. The more comprehensive the information you provide, the better your broker can tailor a policy to your needs.

Can a public liability insurance broker help me with a claim?

One of the key benefits of using a broker is their assistance throughout the claims process. They can help you understand your policy terms, gather necessary documentation, submit the claim to the insurer and liaise with the insurer on your behalf. This support can save you time, reduce stress and potentially lead to a more favourable outcome, especially if the claim is complex or disputed.

What should I do if I have a complaint about my insurance broker?

You should first contact them directly to explain your concerns and seek a resolution. Most brokers have an internal dispute resolution process. If you are not satisfied with their response or if the issue remains unresolved you can then escalate your complaint to the Australian Financial Complaints Authority AFCA. AFCA is an independent external dispute resolution scheme that provides free fair and independent complaint resolution services for consumers and small businesses against financial firms.

Public liability insurance broker in Australia

Get Quotes Online Speak to a broker

All Australian insurance brokers must hold an AFSL or be authorised under one, ensuring they meet ASIC's professional standards.
A broker handles claims on your behalf, prepares documentation and advocates with the insurer to secure your full entitlement.
Brokers can access wholesale or broker-only markets unavailable online, often finding tailored cover or better rates for high-risk industries.
Public liability premiums are generally tax-deductible, and you should review your policy annually or whenever your business changes significantly.

How does a broker work?

Typically, a business insurance broker sells you insurance and takes a cut of the premiums for themselves. This means the same policy might be more expensive to buy through a broker than it would be to buy it directly.

Can I get better cover with a broker than I can direct?

Sometimes, but not necessarily. There are some policies that might only be available through brokers, but for the most part, you can expect to find brokers offering the same policies that you can purchase direct yourself.

Do brokers offer any other services?

Yes. One of the main advantages of paying extra for a policy from a broker is that they can become a new point of contact for your insurance needs. For example, if you need to make a claim or update your policy details, you can call your broker to take care of it instead of wading through the insurer's customer service queues yourself.

Finder survey: How often do Australians from different states compare or switch their public liability insurance?

Response	WA	VIC	SA	QLD	NSW
once a year	1.65%	1.65%	5.38%	2.3%	1.83%
every 2 yrs	0.83%	0.66%		1.38%	2.14%
once every 3+ yrs	0.83%	0.99%		1.38%	0.92%
I never compare or switch		4.95%	1.08%	3.23%	0.92%
more than once a year		0.66%			0.31%

Source: Finder survey by Pure Profile of 1112 Australians, December 2023
Data for ACT, NT, TAS not shown due to insufficient sample size. Some other states may also be excluded for this reason.

What is the role of public liability insurance brokers?

One of the decisions you have to make when shopping for public liability insurance cover is whether you want to purchase cover through an insurance broker. The ability to buy direct from the insurer can sound appealing to some business owners, but there are many advantages to taking out cover through an insurance broker.

Just as it’s the job of an accountant to look after your best financial interests, it’s a broker’s job to look after your insurance needs in the best way possible. A good insurance broker will have a wealth of training and experience and will have the expert knowledge required to give specialised insurance advice for your business. Brokers will take the time to understand the ins and outs of your business and then offer advice specifically tailored to your situation.

A broker can track down a number of suitable policy options for your business and then help you compare them. After weighing up the pros and cons of a number of policies, your broker can then ensure that you choose the right public liability policy for your needs.

Should I buy business insurance direct or with a broker?

When you buy insurance through a broker, you might be paying extra in brokerage fees on top of the policy premiums. But often this is money well spent. Between the services they provide and the potential savings, using a broker might be worth it.

How confident are you in choosing a policy?

You might avoid using a broker if you can confidently buy business insurance direct. If not, you might want to go through a broker instead.

Consider the complexity of your business vs the direct offerings available

There are no hard and fast rules, but a useful starting place might be to look at some of the business insurance packages available in Australia.

If any of these suit your needs, then you might want to shop around for direct cover.
If your business needs are more complex or if you know you’ll need to update policy details frequently, then you might want to use a business insurance broker instead.

How much could a direct public liability insurance policy cost me?

Finder ran some business insurance quotes for a NSW-based events company with 5 employees. We found a public liability policy with Vero may cost $40.75 per month ($500 policy excess). This indicative quote was correct as of 29 June 2023.

Do you really need a public liability insurance broker to help you find cover?

As mentioned, it is possible to go directly to an insurer to purchase your public liability cover. While this may be a suitable approach for some, for some businesses, it might make better financial sense to enlist the services of an insurance broker.

The main benefit of brokers is that they are insurance experts. Day in, day out, brokers specialise in finding the right insurance cover for their clients. They have an in-depth understanding of the Australian insurance market and of the range of policies available, and they have access to a broad spectrum of policies across the market.

Public liability insurance, and any form of business insurance for that matter, can be a confusing topic to wrap your head around. For most business owners, the time required to compare your options and choose the right public liability policy is something they may struggle with.

Without the necessary time and specialised knowledge of the insurance sector, businesses who approach an insurer directly to take out cover can end up with an inadequate level of protection in place. Some end up under-insured, which can be a nightmare when disaster strikes, while others end up paying too much money for some cover elements they simply don’t need. But ultimately, it's your decision to make.

Things to consider when choosing public liability insurance brokers

If you’ve decided to get help from an insurance broker, there are a handful of steps you can take to ensure you end up with the right broker for your business. To start with, look for a broker with a high level of qualifications and experience. You can usually find this information in a broker’s financial services guide, which they are required by law to provide you with.

While it may seem simple to choose a broker that is located the closest to your business, this isn’t necessarily a good approach. Some brokers have specialised areas of expertise, such as public liability insurance, so will be better qualified to meet your particular needs. Some brokers also specialise in finding insurance for specific professions, so if you can find a broker with a wealth of experience in insuring other business in your industry, consider using their services.

Talk to a broker about public liability insurance

Public liability insurance offers a much-needed form of cover for a whole host of businesses, whether you run a small operation or a large company. However, in order to ensure you end up with the right level of coverage for your business, compare a number of policy options and enlist the help of a qualified insurance broker.

Frequently asked questions

Public liability insurance brokers typically receive a commission from the insurer when you purchase a policy through them. This commission is usually a percentage of your premium. Some brokers may also charge a service fee directly to you in addition to or instead of a commission from the insurer. It is a legal requirement for your broker to disclose how they are paid in their Financial Services Guide. This transparency ensures you understand the full cost structure of engaging their services.
Yes public liability insurance brokers are regulated in Australia. They must hold an Australian Financial Services Licence AFSL issued by the Australian Securities and Investments Commission ASIC. This licence ensures brokers meet specific standards for training, conduct and compliance. ASIC’s regulation provides a level of protection for consumers and promotes ethical practices within the insurance industry. The National Insurance Brokers Association NIBA also sets professional standards and a code of practice for its members.
To get the most accurate and suitable public liability insurance quotes, you will need to provide your broker with detailed information about your business. This includes your business name and structure, its primary activities, your annual turnover, the number of employees you have and any specific risks associated with your industry or operations. You should also inform them about your claims history, any previous insurance policies you have held and the level of cover you are considering. The more comprehensive the information you provide, the better your broker can tailor a policy to your needs.
One of the key benefits of using a broker is their assistance throughout the claims process. They can help you understand your policy terms, gather necessary documentation, submit the claim to the insurer and liaise with the insurer on your behalf. This support can save you time, reduce stress and potentially lead to a more favourable outcome, especially if the claim is complex or disputed.
You should first contact them directly to explain your concerns and seek a resolution. Most brokers have an internal dispute resolution process. If you are not satisfied with their response or if the issue remains unresolved you can then escalate your complaint to the Australian Financial Complaints Authority AFCA. AFCA is an independent external dispute resolution scheme that provides free fair and independent complaint resolution services for consumers and small businesses against financial firms.

Sources

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Written by

Richard Laycock

Editor

Richard Laycock is Finder’s insights editor after spending the last five years writing and editing articles about insurance. His musings can be found across the web including on MoneyMag, Yahoo Finance and Travel Weekly. Richard studied Media at Macquarie University and The Missouri School of Journalism and has a Tier 1 Certification in General Advice for Life Insurance. See full bio

Co-written by

James Martin

Journalist

James Martin was the insurance editor at Finder. He has written on a range of insurance and finance topics for over 7 years. James often shares his insurance expertise as a media spokesperson and has appeared on Prime 7 News, Insurance News, 7NEWS and The Guardian. An experienced journalist, James' work has featured in publications including The Irish Times, Companies100 and In Business. He holds a Tier 1 General Insurance (General Advice) certification and a Tier 1 Generic Knowledge certification, both of which meet the requirements of ASIC Regulatory Guide 146 (RG146). See full bio

James's expertise

James has written 181 Finder guides across topics including:

Car, home, life, health, travel and pet insurance
Managing the cost of living
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