Who Needs Public Liability Insurance?

Crucial Defence for Your Business


It safeguards against third-party claims for injury or property damage — but exactly who needs public liability insurance?

Without this protection, your business may be seriously exposed to threats, not only running the risk of compromising your profits, but also jeopardising your operations existence.

This article answers the most pressing questions about liability insurance, and most importantly, why it’s crucial for your enterprise.

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What Is Public Liability Insurance?

Should a member of the public, customer, or client experience injury, death, or damage to their belongings while at your premises — your operation may be liable to costly claims and legal fees.

It could be something as seemingly innocuous as a simple trip or fall, but even a relatively modest claim could damage your operation’s profits.

Public liability insurance from PIB defends your business in the event of a claim — allowing your enterprise to satisfy compensation demands and court expenses. Working together, we tailor your cover to address the particular risk areas of your operation. We can even combine public with product liability protection, in our general liability package.

For in-depth information on the process, function, and restrictions of these policies — check out our Complete Public Liability Guide.

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What Is the Purpose of Public Liability Insurance?

The intentions of public liability insurance are twofold — to safeguard both your business, and any third-parties attendant at your premises.

As mentioned above, an accident, death, or property-damaging occurrence could leave your operation facing expensive claims — which, unless your business is significantly cash-rich, can impair revenue, profitability, and enterprise continuance.

What’s more, should the unexpected occur, and a third party suffers harm — your reputation could be permanently weakened. Consider the negative brand outcome, if it became public knowledge your operation did not have sufficient insurance in place.

Public liability insurance instils customers and clients with trust. They know that as a responsible business, you not only have taken every precaution to safeguard them while on your premises — but also have sufficient protection if a mishap occurs.

Is Public Liability Insurance Compulsory?

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No, there’s no Australian statutory requirement for a business, partnership, or sole trader to have public liability insurance.

Currently, only two types of policies are mandatory under current legislation:

  • Worker’s compensation insurance — should you be an employer.
  • Third-party motor insurance — assuming your business operates vehicles.

However, although PL Insurance isn’t compulsory — it’s highly recommended.

Every business that deals with members of the public, customers, clients, contractors, and suppliers is at risk. At PIB, we deliver tailored public liability insurance that focuses on your business threats — meaning you pay only for the protection you need, not what you don’t.

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Does My Business Need Public Liability Insurance?

Admittedly, there are a few circumstances under which your operation may require public liability insurance. While this protection may not be necessary under Australian legislation, it may be demanded by certain non-governmental bodies.

It can be requested by:

  • Clients.
  • Contractors.
  • Businesses using your services.
  • Trade associations and bodies.

Remember that a serious injury or death could leave your operation — even if it’s a charity or not-for-profit — facing claims in the millions of dollars. You may take every possible precaution to safeguard your customers and clients — but accidents can still happen.

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Do I Need Public Liability Insurance If I Work from Home?

If you’re running your business from your private residence, you’re probably wondering do I need public liability insurance for my home?

It’s true that some home and contents policies deliver limited protection if you trade from your household — although, this is usually restricted to the assets you’re utilising to operate. For example, laptops, printers, and mobile telephones.

That said, speak with your insurer to ensure that your policy allows for working from home.

However, home and contents will not safeguard you or your enterprise should a client, customer, or supplier suffer an accident, or have their property damaged, in your residence.

Therefore, it’s crucial you take out applicable public liability protection to defend you and your business.

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Do You Need Public Liability Insurance as a Sole Trader?

If you and your enterprise deal with the general public and third parties, you need public liability insurance to guard against costly claims and legal expenses.

This valuable cover isn’t dependent on the size of your business, your number of employees, or your revenue — although these factors can have a significant effect on your public liability insurance costs.

As many sole traders operate as a lifestyle business, turnover and profits can sometimes be modest. Without the backup of significant assets and cash — just one small claim could permanently damage these operations.

What Types of Business Require Public Liability Insurance?

If your enterprise interacts with the general public, clients, suppliers, and customers — it’s crucial you consider public liability insurance, irrespective of your business sector.

Although not exhaustive, our most common policies include:

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  • Public liability insurance for small
  • businesses.
  • Restaurants.
  • Public liability insurance for sole traders.
  • Bistros.
  • Liability insurance for partnerships.
  • Hairdressers.
  • Public liability insurance for SMEs.

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What If I Don’t Take Out Public Liability Insurance?

In short, your livelihood could be threatened.

Facing a claim without suitable protection could mean paying:

  • Significant damages and compensation.
  • Your lawyer and barrister fees.
  • Professional expenses.
  • The claimant’s legal fees.

Furthermore, while you’re spending significant time defending your operation and finding the funds to cope with compensation and concomitant expenses — who is running your business?

One accident or mishap could effectively liquidate your enterprise. For a relatively small premium, compared to the costs of addressing a claim, public liability insurance can give your business the protection it needs and deserves.

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Choose PIB for Public Liability Insurance in NSW

At PIB, our expert advisors will forge robust public liability insurance packages tailored to your specific operation.

Working together, we will ensure you’re comprehensively protected in your business’s areas of threat — while omitting irrelevant and unnecessary cover. Thus ensuring you affordable premiums by only paying for the safeguarding your enterprise needs.

And, we’re with you for the long term.

Should a claim arise, we will work diligently to ensure its smooth progression. Keeping you consistently informed, and striving for the best outcome for you — you’re reassured having a liability specialist on your side.

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