Public Liability Insurance in Australia

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Personal injury	Public liability	Legal costs	Levels of cover
Promoted QBE Business Liability				$5 million $10 million $20 million	Get quote View details Compare product selection Compare	loading
Promoted Elders Business Liability					Get quote View details Compare product selection Compare	loading
Promoted Youi Business Liability				$5 million $10 million $20 million	Get quote View details Compare product selection Compare	loading
Hollard Commercial Insurance Public and Products Liability Cover				Not stated	Continue View details Compare product selection Compare	loading
RACV Business Liability				$5 million $10 million $15 million $20 million	Continue View details Compare product selection Compare	loading
GIO Business Liability				$5 million $10 million $20 million	Continue View details Compare product selection Compare	loading
RelyOn Public Liability Insurance				$5 Million $10 Million $20 Million	Continue View details Compare product selection Compare	loading

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What is public liability insurance?

Public liability insurance is a type of cover that protects you if your business becomes legally liable if someone is injured or their property is damaged.

It refers to damages from the physical surroundings and physical property rather than damages from services you provide. For example, it will cover you if someone slips and falls on your property, but not if you splash bleach into their eye while dyeing their hair.

The Australian insurance market continues to shift towards digital-first solutions and more transparent pricing models. According to industry insights, providers are increasingly categorised by their speed of service and ability to handle specific risk profiles, balancing premium stability with fast claims turnaround times.

What does public liability insurance cover?

• Legal liability. Public liability insurance provides cover when a court finds that you are legally responsible to pay damages and additional costs for: damage to someone else's property, personal injury to someone else, and advertising liability.
• Legal costs. If a legal liability claim is made against you, your public liability policy will cover the costs incurred in your legal defence.
• Cover for other people. Public liability will not only include you but any director, business partner, executive officer, shareholder or employee.
• Cover for other activities. Many policies will allow you to extend cover beyond your normal business activities to include the provision of sports and child care facilities, first aid and ambulance services, and the provision of food and beverages to employees and visitors.
• Products liability. Some policies will also include products liability cover for injury or damage caused by your products.
• Damage to goods in possession or legal control. Provides cover for physical damage to goods that are not owned by the insured but are in their possession or legal control.
• First aid expenses. Provides cover for expenses incurred by the insured for first aid given to other parties at the time of an injury.

APRA data indicates that while claim frequency has been lower than historical peaks, the average cost of finalised claims has been rising by around 5.5% per year since 2013. This increase is largely driven by bodily injury claims and rising legal costs, which emphasizes the importance of selecting adequate cover limits (Source: APRA NCPD Analysis 2025).

Who needs public liability insurance?

Essentially, anyone who owns a business and interacts with the public should consider public liability insurance. It's designed to protect you from the costs arising from any injury to a person or damage to someone's property that happens within your place of business.

In some industries and for certain government contracts, public liability insurance will be mandatory.

Keep in mind, public liability insurance is different to professional indemnity insurance. If you harm someone via the services you offer, public liability wouldn't cover you - but professional indemnity insurance would.

For those searching for the 'best for tradies' options, specialist providers like VIZ and AAMI offer tailored packages that include tools cover and instant certificates of currency to meet worksite entry requirements. Meanwhile, top digital platforms like BizCover allow users to compare multiple insurers online in minutes.

What affects the cost of public liability insurance?

• What your business does. Some businesses simply attract more risk than others. For example, the risk of injury or damage on a construction site will be higher than that of a retail store. Insurers will analyse what you do, compare this to past claims in that industry and factor this into your premium.
• How big your business is. The larger the business, the higher the risk of injury or damage.
• Your business location. You can expect a higher premium if your business is in a high-risk location, such as an airport, construction site, railway station or mine site.
• The structure of your policy. You can affect the price of your policy by choosing a higher or lower excess or higher or lower benefit limits.

Expert insight

"Insurance policies can be difficult to understand especially when you're trying to get adequate cover and the 'best bang for your buck', so I suggest business owners consult an insurance expert each year to have their insurance needs assessed. A good broker takes time to understand your business and will provide you with recommendations that work for your business. Plus, in most cases, there's no direct fees involved for your business."

Justine McLean

Business finance expert

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FAQs

• Is public liability insurance tax-deductible for Australian businesses?

  Yes, the premiums you pay for public liability insurance are generally considered a necessary business expense and are tax-deductible for most Australian organisations. You should keep your tax invoices as records to claim these deductions when lodging your annual tax return.

• Is public liability insurance legally compulsory for all Australian businesses?

  No, public liability insurance is not legally mandatory for every business in Australia but it is often required by law for certain licensed trades and is a standard requirement for most commercial leases or government contracts. Even if not legally required, it is highly recommended to protect against the high cost of third-party legal claims.

• What is a Certificate of Currency and why do I need it?

  A Certificate of Currency is a formal document issued by your insurer that serves as official proof that you have a current and active public liability insurance policy. You will frequently be asked to provide this document to clients, landlords or principal contractors before you are allowed to start work on a site or enter a lease agreement.

• Does public liability insurance cover damage to my own tools and equipment?

  No, public liability insurance only covers damage caused to third-party property and does not provide protection for your own business assets, tools, stock or equipment. To protect your own items from theft or damage, you would typically need to add general property or business assets cover to your policy.

• What limit of public liability cover does my business need?

  Most Australian businesses choose between $5 million, $10 million, or $20 million in public liability cover, depending on their industry risk level and contractual obligations. You should review your client agreements, lease requirements, and trade license guidelines to determine the appropriate limit for your operations.

• Can I get public liability insurance as a sole trader?

  Yes, public liability insurance is readily available for sole traders and independent contractors across Australia to protect against the cost of personal injury or property damage claims. Having a current Certificate of Currency is often a strict requirement before sole traders can access work sites, tender for contracts, or obtain trade licenses.

Written by

Gary Ross Hunter

Journalist

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Gary Ross Hunter has over 6 years of expertise writing about insurance, including life, health, home, and car insurance. Having reviewed hundreds of product disclosure statements and published over 800 articles, he loves simplifying complex insurance topics for everyday readers. Gary has contributed to major outlets like Yahoo Finance, The Sydney Morning Herald, and news.com.au, and holds a Bachelor of Arts (Honours) in English Literature from the University of Glasgow, along with a Tier 2 General Advice certification, ensuring his work adheres to ASIC’s RG146 standards. See full bio

Gary Ross's expertise

Gary Ross has written 522 Finder guides across topics including:

• Health, home, life, car, pet and travel insurance
• Managing the cost of living

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Peta Taylor

Publisher of Insurance

Peta Taylor is a publisher at Finder, working across all of insurance. She's been analysing product disclosure statements and publishing articles for over 2 years. Peta is passionate about demystifying complex insurance products to help users make well educated decisions with confidence. Peta is part of Finder's insurance awards team and works alongside editorial and insights experts to bring users the best insurance products every year. See full bio