Public Liability Insurance in Australia

What is public liability and general liability Insurance?*

Public liability is one of the most vital forms of insurance for businesses of all sizes.

As an Australian small business owner, including if you are a sole trader or contractor, you should strongly consider public liability insurance if you have members of the public, customers and suppliers visiting your premises, or if you or your staff visit the premises of customers, suppliers and business partners.

According to the Australian government website for business, www.business.gov.au, and specifically the section on liability insurance, while “liability insurance is optional in most cases,* it is strongly recommended for businesses in all industries as the likelihood of being sued is unpredictable and potentially very costly”.

What does public liability and general liability insurance cover?*

Public Liability Insurance, also known as general liability insurance or liability insurance, is the core insurance for most small business owners, self-employed contractors and sole traders.

For a relatively low cost Public and General Liability insurance can protect a small business owner, self-employed contractor or sole trader against a lot of types of significant claims and damages. Please see the Public liability definition below:

• Legal liability of a business to compensate the damages made to the general public on account of injury, death, damage to property and possessions due to business negligence.

Do I need public liability insurance?*

In some parts of Australia, for some occupations public liability insurance can be compulsory. Examples are plumbers in Victoria, and electricians in Queensland.

Also in the building trade throughout Australia many worksites will not let any of their subcontractors on their worksite without a Certificate of Currency . That is proof public liability insurance has been paid, and is in force.

Whether it is compulsory or not public liability insurance is recommended for all small businesses if you deal with members of the public, including subcontractors, whose activities take place in public, who want to protect themselves and their assets.

Accidents happen in business all the time and claims for damage to someone else’s property and personal injury can be very expensive.

Even if the accident is not your fault you may need to pay lawyers to defend you. Have you budgeted for a legal bill of over $10,000 this year? Why spend large amounts of your own or your businesses’ money defending yourself, or put your business and personal assets at risk, when for a relatively small amount you can protect yourself and your business with public liability insurance?

You may be able to protect yourself, your business partners and staff today with an affordable and suitable public liability for your business activities by calling 1300 542 573 and talking with a friendly SMART business insurance broker.

Important information about public liability for subcontractors and trades:

• In Australia sub-contractors and trades are responsible for their own actions on a worksite.
• If you cause property damage or personal injury to another person you will be liable for financial damages, legal defence costs and other charges
• Every day Slip-and-fall accidents may cost your small businesses well over $10,000

How much public liability insurance do I need?*

The amount of cover you require depends on the type of work you do, the risks involved, the contracts you undertake, the size of your business and your own risk mitigation strategy. In Australia, there are generally three levels of coverage offered for most small business owners: $5 million, $10 million, and $20 million (although some insurers may offer up to $50 million worth of liability cover). As a rule, when deciding how much insurance you need, you should consider the highest potential compensation claim you may face and the value of the contracts you undertake.