PUBLIC LIABILITY COST IN AUSTRALIA
Crucial to safeguarding your business, the public liability insurance costs are relatively small compared to the possible claims, compensation, and legal fees that your business may face without this protection.
Should a client or customer suffer injury, death, or damage to their property while on your premises, the remuneration required to satisfy litigation could permanently damage your operation’s profitability or indeed, existence.
At PIB, we deliver tailored public liability insurance in NSW and across Australia — and can combine with product safeguarding under a general liability policy. By creating robust packages that defend your operation in its particular areas of risk — and omitting unnecessary and irrelevant cover — you’re assured the most competitive premiums.
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How Much Is Public Liability Insurance?
The cost of public liability insurance varies significantly across individual businesses.
As this protection targets all operations that deal directly with third parties, it needs to be sufficiently versatile to address the differences in threat levels inherent to these enterprises.
This flexibility means no two insurances are identical, and therefore, neither are the costs of their premiums.
Factors typically affecting the cost of PL insurance include:
- Industry type.
- Size of your business.
- Amount of turnover.
- Your previous claim history.
- Value level of insurance needed.
- Location of your enterprise.
- Inclusions and exclusions in your policy.
- The efficiency of your broker to find competitive protection.
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The Public Liability Costs in NSW and Australia Explained
Type of Business and Industry Sector
Possibly the most considerable determinant in the public liability cost for small and large business.
The industry sphere typically dictates the amount and severity of inherent threats — generally speaking, the greater the risk, the higher the public liability insurance premiums.
Consider a busy high-street restaurant in a bustling city.
The high footfall and customer volume in this business format increase risk — attendant third parties could:
- Fall over a loose carpet.
- Burn themselves with hot soup.
- Slip or skid on recently mopped floor tiles.
- Die from food poisoning.
- Have an expensive shirt ruined by a clumsy waiter spilling red wine.
In these events, the third party, or their relatives, could claim for injury, death, or property damage. Insurers, therefore, elevate their public liability costs to reflect this threat level.
Conversely, a website designer operating from a rented office may have little public interaction. Contracts and meetings may be organised online, and the actions of their trade are unlikely to damage the health, well-being, or property of their clients. As such, liability insurance premiums tend to be lower.
Size of Your Business
Insurers usually examine the number of employees within your operation when assessing premiums. Hence the public liability cost for a sole trader is often smaller than that of a large company.
The higher the employment rate of your enterprise, the more costly your premiums — as the greater the volume of workers, the elevated likelihood of mishaps.
Let’s assume you run a modest office cleaning firm utilising just a couple of cleaners. The threat of something going wrong at a client’s workplace is relatively small. However, if you operate a substantial enterprise with 50 operatives, statistically, there’s a higher chance of them forgetting to properly sign wet floors or accidentally spilling bleach on a laptop.
Insurers may also investigate turnover, stock throughput, or client numbers — as generally, the larger the activity within your business, the bigger the opportunity for mishaps and accidents.
Level of Cover
At PIB, one of the most common questions we’re asked, is how much public liability insurance do I need?
All public liability policies have a maximum cover limit — for most businesses, $10 million is sufficient and the most commonly agreed level. However, in consultation with your broker, an assessment of your inherent enterprise risks, and the requirements of the insurer — this limit can be raised or lowered.
It’s crucial that your policy cover level meets the intrinsic risks of your operation, as well as addressing any statutory body, work contract, or professional membership minimum protection limits.
Unsurprisingly, the higher the level of safeguarding, the more expensive the premium —
public liability insurance for 20 million dollars will have a greater cost than $10 million protection. Thankfully, twice the cover limit does not mean double the price.
As part of our action-orientated commitment, PIB will work with you to advise on the most applicable cover level — while remaining reassuringly affordable.
Location of Your Business
Interestingly, where your operation is based affects the price of your public liability protection. It’s not because customers in Queensland are more likely to trip and fall than those in NSW, but due to statutory legislation.
All insurance premiums incur stamp duty — and its level varies across territories and states. Usually, you will pay the set duty of the area in which your operation is located. However, if you run a multitude of enterprises across Australia, this additional tax will be set by the state or territory in which your head office resides.
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Opt For PIB for Affordable Public Liability Insurance
It can be a false economy searching for the cheapest public liability insurance in NSW.
Choosing the lowest-priced premiums could mean an insufficient cover limit and leave your business dangerously exposed to existential threats.
At PIB, our team of expert advisors will create bespoke business insurance public liability packages that address the particular risks inherent to your enterprise. Not just allowing your operation to enjoy the protection it needs — but also ensuring you only pay for the safeguarding you require, not what you don’t.
With access to a vast network of insurers, you benefit from specialised protection and the most affordable premiums on the market.