How Much Does Public Liability Insurance Cost?

Public liability insurance is a form of business insurance that can protect your business against claims made by members of the public who are injured or suffer loss as a result of your business activities. It can help if you are sued over something that happened on your premises or on a job, such as an accident or injury caused by faulty equipment or building work. Public liability insurance can cover your legal costs and any compensation awarded if you're found liable for someone else's injury or damage caused by negligence, up to the limit in your policy.

What public liability is for

Public liability insurance can cover you for injury to other people, or damage to their property, caused by your work. For example, a dropped tool cracks a client's car windscreen, a burst pipe floods a client's kitchen, or a client trips over a lead you left across a doorway. For the full explanation, read what is public liability insurance?

What a policy covers depends on its wording, limits, excesses and exclusions, and the insurer decides whether a claim is paid, so read the PDS (product disclosure statement) or policy wording before you decide.

Public liability and how much it costs

By law, some states and territories need public liability insurance for certain occupations (business.gov.au), and head contractors, councils and clients often ask for it. Public liability insurance is sometimes called third party liability cover, and it is often sold together with products liability insurance.

So how much is public liability insurance? The cost varies with the size of your business, the cover limit you choose and other factors. For example, a business with a larger crew and more jobs on the go will usually pay more than a sole trader working alone. Insurers weigh these factors differently, so the only way to know the cost for your business is to get a quote. To find out more about how this type of cover works, read about public liability insurance for tradies or contact us.

What affects the cost of public liability insurance

• your trade and the type of work you do
• your turnover
• the cover limit you choose
• how many people work for you
• how much of your work is subcontracted
• your state
• your claims history

Excesses and how your policies fit together

The cover limit you choose is one of the things that sets your premium. To work out a limit, read how much public liability cover do I need? Public liability can often be packaged together with other insurances, and it may be possible to change the excess (the amount you pay towards a claim) on your policy. It's also worth thinking about the vehicles your business uses. Damage caused by a vehicle is usually a matter for vehicle insurance rather than public liability, because many public liability policies exclude registered vehicles, so check how your policies fit together.

How costs differ between trades and different business sizes

Carpentry, plumbing and painting are some of the trades that commonly carry public liability insurance. Premiums differ between trades depending on their risk profile and the location where they operate. The size of your business also affects how much you pay; larger businesses tend to have more complex operations, so they tend to pay higher premiums. Smaller businesses usually deal with fewer clients and take on fewer projects at once.

Conclusion

The insurer sets the premium based on factors such as the type of work you do and how much cover you choose. If you need more information on what this could mean for your business, contact us to speak with a team member, or get a quote.