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Do you really need public liability insurance?

Do you really need public liability insurance?
Public liability insurance protects your business against claims made by third parties. These claims can result from accidents or injuries that occur to individuals, as well as accidental damage to property, all of which takes place due to your business activities. If during the course of operating your business you come into contact with customers, whether on your own premises, in a public place or a property owned by someone else entirely, public liability insurance will cover you for personal injury or property damage claims. 

Unfortunately, not all business owners take out the right public liability cover, simply believing that it isn't necessary in their line of work. However, anyone who has been subjected to the potentially massive costs of liability claims will certainly understand the risks that are involved when you don't have the appropriate insurances in place. Whilst public liability insurance isn't compulsory in Australia, many professionals can't renew their licences and many employers won't take on contractors or sub-contractors without this type of cover. So why don't all employers have public liability insurance?

  1. Too small to worry: Many business owners believe that it's only the big businesses that need to worry about public liability insurance. Small businesses however, are often in greater need of this type of cover, simply because they don't have the money to pay for expensive lawyers, on-going court cases that can last for years and huge payouts if they lose their case.

  2. Home-based businesses: With more and more people setting up home-based businesses, the future is set for many to be faced with expensive claims they have no hope of funding. If you have customers visiting your home-based business, public liability insurance will cover you for any personal injuries or property damage suffered by your customers whilst on your premises.

  3. I'm not a tradie: Just because you are an accountant running your own business from a small office and you don't have any employees, doesn't mean that a customer won't trip as they enter your premises. Many small business owners believe that only trades people or manual workers need worry about public liability insurance, when in fact all business owners can be sued for personal injury or property damage.

  4. We have the money: It's fair to say that the costs of contesting a liability claim can be huge, but even these can be overshadowed by the enormous costs if you lose your case. It's not unusual for businesses to pay hundreds of thousands of dollars to both lawyers and claimants; money that isn't easy to replace, particularly for a small business.

  5. Breach of contract: Many businesses work to contracts, so they erroneously believe that they don't need public liability insurance. So what happens if you are accused of breaching a contract and are taken to court? Lawyers, court costs and damage payouts can break many small businesses, which is why public liability insurance is so important.

To discuss how public liability insurance can be tailored to your exact business needs, talk to one of our insurance specialists today.  

Management Liability insurance is designed to provide protection to both the business and its directors or officers for claims of wrongful acts in the management of the business.

A business insurance pack can provide cover for your business premises and contents, against loss, damage, theft or financial loss from an insured interruption to the business.

Purchase up to six products under one Business Insurance Package. 


To discuss how public liability insurance can be tailored to your exact business needs, talk to one of our insurance specialists today.  

General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.


Steven Thomas

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