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The Basics

Public Liability Insurance

Public liability insurance protects your business against claims made by a third party. such as a customer, supplier, visitor, or member of the public, who suffers bodily injury or property damage as a result of your business activities. It covers your legal defence costs and any compensation you are ordered to pay, up to your chosen policy limit

Without public liability cover, a single claim could expose your business to significant legal fees and compensation costs potentially running into hundreds of thousands of dollars. Even if a claim against you is unfounded, defending it in court without insurance can be financially devastating.

Public liability insurance is one of the most common forms of business insurance in Australia. It is typically purchased alongside other covers such as professional indemnity, business interruption, and property insurance as part of a broader risk management strategy.

The team at Dudgeon Berry Insurance Group can access policies from multiple insurers, meaning we find the cover that genuinely fits your business, not just the policy that’s easiest to sell. Our team takes the time to understand your operations, your industry, and your exposure before making a recommendation.

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Policy Coverage

What does Public Liability Insurance Cover

Public liability insurance typically provides protection in the following situations, however policies vary between insurers. Your Dudgeon Berry broker can assist with any questions around what the policy does and does not cover.

✔ Typically Covered
  • Third-party bodily injury on your business premises
  • Injury caused by your employees during business activities
  • Damage to a client’s or third party’s property
  • Legal costs and defence expenses for covered claims
  • Compensation awarded to the injured or affected party
  • Incidents occurring away from your premises (e.g. at a client’s site)
  • Product liability (when combined or included in policy)
✘ Generally Not Covered
  • Injuries to your own employees (covered by workers’ compensation)
  • Damage to your own property or equipment
  • Professional errors or omissions (covered by professional indemnity)
  • Deliberate or criminal acts
  • Contractual liability assumed without insurer consent
  • Pollution (unless sudden and accidental — check your policy)
  • Liability arising from use of motor vehicles on public roads

Who Needs Public Liability Insurance

Almost any business that interacts with customers, contractors, or the public has some exposure. Certain industries are required to hold a minimum level of cover – others would be unwise to operate without it.

Industry / Business Type Typical Requirement Common Driver
Tradespeople (builders, electricians, plumbers) Often required Licensing boards, client contracts, state regulations
Retail shops and hospitality venues Strongly recommended Customer foot traffic, landlord requirements, lease agreements
Event organisers and market stalls Often required Council permits, venue requirements
Health and fitness professionals Often required Industry associations, studio/gym contracts
Cleaning and maintenance contractors Often required Commercial contracts, building managers
Agriculture and farming operations Strongly recommended Public access to properties, agritourism activities
Consultants and sole traders (any field) Strongly recommended Client contracts, government tenders
Allied health, beauty, and wellness Often required Professional associations, regulatory bodies

How Much Public Liability Cover Do You Need

The most common policy limits available in Australia are $5 million, $10 million, and $20 million. The right amount depends on your industry, contract requirements, and the potential severity of a claim against you.

Coverage Limit Typically Suits Notes
$5 million Sole traders, small businesses, low-risk operations Often the minimum required by councils and smaller commercial contracts
$10 million Most small to medium businesses, tradespeople Required by many government and commercial contracts; common industry standard
$20 million Medium to larger businesses, higher-risk industries Required by some major government contracts and large construction projects

Good to know: Your Dudgeon Berry broker will review your contracts, industry requirements, and risk profile to recommend the right limit for your specific situation. Getting it wrong — too low — can leave you personally exposed if a claim exceeds your policy limit.

Cover Extensions to Consider

Depending on your business, you may need one or more of these related covers alongside your public liability policy.

Product Liability

Covers claims arising from products you manufacture, supply, or sell that cause injury or property damage. Often bundled with public liability but worth confirming is included

Professional Indemnity

Covers claims arising from professional advice, services, or errors. Essential if your business provides advice, consulting, or skilled services. A separate cover from public liability.

Employers’ Liability / Workers’ Compensation

Workers’ compensation insurance is compulsory in all Australian states for businesses with employees. It covers injury, illness, and death sustained in the course of employment.

Property Insurance

Covers physical damage to your business premises, contents, and equipment. Separate from public liability but often packaged together in a combined business insurance policy.

Cyber Liability

Cyber Liability covers costs associated with a data breach or cyber attack, including notification costs, regulatory fines, and third-party liability. Increasingly important for businesses of all sizes.

Management Liability

Management Liability Insurance protects directors and officers against claims related to the management of the business, including employment practices, statutory liability, and mismanagement claims.

Frequently Asked Questions

What is public liability insurance

Public liability insurance protects your business if a third party, such as a customer, supplier, or member of the public, suffers bodily injury or property damage as a result of your business activities. It covers your legal defence costs and any compensation you are ordered to pay, up to your policy limit.

Is public liability insurance compulsory in Australia

Public liability insurance is not a universal legal requirement in Australia, but it is mandatory in certain licensed trades and industries. Beyond legal requirements, it is routinely required by councils for event permits, by landlords as a condition of leasing commercial premises, and by clients and government bodies as a condition of awarding contracts. Even where it is not compulsory, operating without it exposes your business to potentially significant financial risk.

How much public liability insurance do I need

Common limits in Australia are $5 million, $10 million, and $20 million. The right amount depends on your industry, the scale of your operations, and the requirements of your clients or contracts. Your Dudgeon Berry broker can help you assess the appropriate level based on your specific circumstances.

What is the difference between public liability and product liability insurance

Public liability insurance covers injury or damage caused by your business activities or premises for example, a customer slipping on a wet floor. Product liability covers injury or damage caused by a product you have manufactured, supplied, or sold – for example, a faulty appliance that causes a fire. In many policies these are combined, but it’s important to confirm that product liability is included if you sell, manufacture, or supply goods.

Does public liability insurance cover my employees

No. Public liability insurance covers third parties such as customers, contractors, and members of the public. Injuries sustained by your employees in the course of their work are covered by workers’ compensation insurance, which is a compulsory requirement for employers in all Australian states and territories. These are two separate and distinct covers.

How much does public liability insurance cost in Australia

Premiums depend on your industry, turnover, number of employees, claims history, the nature of your business activities, and the level of cover you require. We do the research and  compare options across multiple insurers to find competitive pricing rather than limiting you to a single insurer’s premium. Contact us for an obligation-free quote tailored to your business.

Can I get public liability insurance as a sole trader

Yes. Sole traders, freelancers, and independent contractors can all obtain public liability insurance, and many should. As a sole trader there is no company structure to separate your personal assets from business liabilities meaning a claim against your business can affect you personally. Many clients, councils, and government bodies also require sole traders to hold cover before awarding work.

What is the difference between public liability and professional indemnity insurance

Public liability insurance covers claims for physical injury or property damage caused by your business activities. Professional indemnity insurance covers claims arising from the professional advice or services you provide – for example, if a client suffers a financial loss because of an error or omission in your work. Many businesses need both covers. A Dudgeon Berry Insurance Group broker can help you understand which combination is right for your profession and risk profile.

Ready to Protect Your Business

Do not wait for a claim to find out whether your business is adequately covered. A review of your public liability exposure costs you nothing yet could save you considerably. Contact Dudgeon Berry Insurance Group today to speak with a broker.

General information only. This page does not constitute financial or legal advice. Insurance cover is subject to policy terms, conditions, exclusions, and limits. Please speak with a qualified broker to understand what is right for your circumstances. Dudgeon Berry Insurance Group holds an Australian Financial Services Licence.

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We prioritise building strong relationships with our clients, based on trust, transparency, and personal service.