Why would you need public liability?

Public liability insurance protects your business against costs arising from claims of injury, death, or property damage caused to third parties (customers, clients, or the public) during your business activities. It is essential for covering legal fees, compensation payments, and repair costs, especially if you interact with the public, use venues, or work on-site.

Why would I need public liability insurance?

Public Liability insurance can cover the cost of pay-outs and legal fees if your business is sued by a third party (third parties include members of the public, customers or clients, but not your staff). Public Liability insurance can cover an accident in your work area or relating to your business activities.

Do you legally have to have public liability?

Public liability insurance isn't usually a legal requirement, but it comes recommended if you own a business or work independently and regularly interact with the public, clients and contractors. Accidents happen, so it can help to get one step ahead of them.

What is the purpose of public liability insurance?

Public Liability insurance is designed to provide protection for you and your business in the event a customer, supplier or a member of the public brings a claim against you due to them being injured or sustaining property damage as a result of your negligent business activities.

Is it compulsory to have public liability?

Public Liability insurance is generally a mandatory requirement for some trades when you operate under a state issued license, for example builders, plumbers or electricians. Depending on the state or territory you work in and your occupation there are special requirements for your cover.

Insurance Explained: What is Public Liability?

What is the meaning of public liability?

Public liability law applies when a person or entity is found liable for causing harm to another person or their property when a 'duty of care' was owed.

What doesn't public liability cover?

No, public liability insurance doesn't cover employees. It only offers you protection against claims made by third parties. If you're looking for protection to cover employees, then you'll need employers' liability insurance.

What is an example of public liability?

Examples of public liability claims include: An explosion at a construction site which causes property damage to neighbouring premises. A customer slipping on a wet floor at a business premises. Damaged goods delivered by a business or contractor.

Do I need public liability insurance as a sole trader?

No, public liability insurance isn't a legal requirement for sole traders, but it's highly recommended because it protects you from hefty costs if you accidentally cause injury or property damage to a member of the public, and many clients or contracts require it as a condition of working with you. While Employers' Liability insurance is legally mandatory if you hire anyone, Public Liability covers the risks you face interacting with the public, clients, or working in public spaces, safeguarding your personal assets and finances. 

How much does it cost to have public liability?

Low-risk sole traders can secure policies from around $39 a month, while high-risk operators—think scaffolding or large events—may face premiums well above $20,000. The figure on your quote hinges on industry risk, turnover, cover limit, location and any past claims. Price, though, is only half the story.

What does public liability cover?

Public liability insurance covers costs from claims by the public (customers, clients, visitors) for accidental injury, death, or property damage that occurs in connection with your business, paying for compensation and legal defense fees. It protects businesses from financial losses when they are found legally responsible for incidents like a customer slipping in a store or a tradesperson damaging a client's property, but it does not cover employee injuries (that's Employers' Liability) or professional mistakes (that's Professional Indemnity). 

What happens if you don't have liability insurance?

What happens if I don't have public liability insurance? If someone files a claim against you and you don't have public liability, you'll have to pay for a solicitor out of the company funds or even your own pocket – and solicitors' fees can run into the thousands per day.

What exactly does liability insurance cover?

Liability coverage in your car insurance policy pays for property damage and/or injuries to another person caused by an accident in which you're at fault. This type of auto coverage is required by most states to legally drive your vehicle.

What is an example of a public liability claim?

Examples of public liability claims

Slipping on contaminants in a shopping centre and falling. Tripping on uneven pavement or concreting on the footpath, or tripping and falling in potholes in car parks where there may be uneven ground. Stepping in a pothole on somebody's lawn.

What can you claim on public liability insurance?

Public liability insurance covers the cost of claims made by members of the public for incidents that occur in connection with your business activities. Public liability insurance covers the cost of compensation for: personal injuries. loss of or damage to property.

How do I know if I need public liability?

You need public liability insurance if your business interacts with the public, visits client premises, hosts events, or operates from a space clients visit, as it covers claims for injury or property damage, protecting you from potentially devastating financial costs, even if it's often not legally mandatory for most businesses. Ask yourself if clients, customers, or the general public could get hurt or their property damaged due to your work; if the answer is yes, you likely need it. 

What is covered under public liability?

Public Liability Insurance protects you and your business if it's shown your negligence led to someone being injured or having their property damaged. For example, if the floor in your shop is wet and a customer slips and hurts themselves, or you're cleaning a client's house and you accidentally break a window.

Is it illegal to work without public liability insurance?

There is no law that requires your business to have public liability insurance. However, some large organisations require you to have it, and will not do business with you unless you are insured.

What is minimum public liability insurance?

Often the amount of cover you require will be dictated by the contracts you enter into. If your business is doing any work within shopping centres you will often find that the contract stipulates public liability of at least $20 million. The same is true of many government contracts.

What would not be covered by a liability policy?

Some of the things liability coverage does not cover are obvious – it does not cover injuries to ourselves or our own medical bills for auto accidents or damage to our own vehicles either from auto accidents, weather damage, or theft.

How much is it to get public liability?

A public liability policy could cost less than $500 for a sole trader needing the minimum cover, through to $100,000+ for a much larger or higher-risk trade businesses. Click the button below for a quote, or keep scrolling to read our public liability cost guide.

Does a self-employed person need public liability insurance?

Do I need sole trader liability insurance? Public liability insurance isn't a legal requirement for sole traders. But there are very few businesses that can safely operate without it. Whether you're a florist or a plumber, you're likely to be exposed to risks that may require public liability cover.

What is the minimum public liability insurance in the UK?

Because claims against businesses can run into the hundreds of thousands, or even millions, of pounds, a good public liability insurance policy should cover you for at least £1million. This might seem like a lot, but it's important not to be underinsured.