Public Liability Insurance in Australia: What Businesses Should Know

What public liability insurance covers

Public liability insurance covers your business's legal liability for personal injury or property damage caused to third parties as a result of your business activities. That includes customers slipping in your store, subcontractors damaging a client site, or a product malfunction causing harm.

It typically covers legal defence costs, settlements and damages awards up to the policy limit.

Who needs it and why

• Retailers, hospitality venues and gyms — high foot traffic and injury risk.
• Tradies, builders and contractors — often mandated by head contracts and site inductions.
• Event organisers, food trucks and market stallholders — usually a condition of the venue permit.
• Professional service businesses — often required by commercial landlords under lease terms.

How much cover is enough?

Most Australian commercial contracts require between $10 million and $20 million of public liability cover. Government and infrastructure work often demands $20 million or more. The right number depends on the size of the sites you attend, the value of assets you work near, and the customer base you serve.

Contracts, indemnities and insurance

Most commercial contracts include an indemnity from the supplier in favour of the customer. If your insurance policy does not respond to contractually assumed liabilities, that indemnity sits directly on your balance sheet.

Envision Legal reviews contracts alongside your insurance schedule so the two work together, not against each other.

This article contains general information only and does not constitute legal advice. Envision Legal accepts no liability for any loss arising from reliance on this content. You should seek independent legal advice tailored to your specific circumstances. For enquiries, contact Envision Legal.