Insight
Public Liability Insurance in Australia: What Businesses Should Know
18 Jan 2026
In short
Public liability insurance protects your business against claims from customers, suppliers or members of the public.
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.
Talk to us
Ready to talk it through?
Send us a note about what you're working on. We'll respond within one business day and, if we're a fit, book a free 15-minute consultation with a senior lawyer.