What is Public Liability Insurance?*

Public Liability insurance protects your business if a customer, supplier or member of the public is injured or sustains property damage as a result of your negligent business activities. 

Small business owners have a legal responsibility to take reasonable steps for the safety of their customers, suppliers and the community and for their property.  

Most Public Liability policies also extend to coverProduct Liability. If you sell, supply or deliver goods, even in the form of repair or service, you may need cover for negligence claims against you where your product has caused injury, death or damage.  

Even the most careful businesses run the risk of injuring someone or damaging something during the course of their operations.  

Chances are like many other small businesses, if you were faced with a public liability claim, the financial impact of paying the claim and associated legal fees (including defence costs) could potentially send you out of business. That’s why you should consider Public Liability insurance to provide the financial protection your business deserves.  

A public liability claim could result from:

  • Injury to or death of third parties as a result of your negligent business activities  
  • Damage to a third party’s property as a result of your negligent business activities 

What is Public Liability Insurance?

Do I really need Public Liability Insurance?

The short answer. Yes. The long answer. Absolutely yes. If you or your employees interact with other people while doing business in any way you should consider Public Liability insurance. For example:^ 

  • Consultants/Contractors/ Tradespeople who work from home or visit their clients’ premises 
  • Businesses that have an office, showroom, shop or any premises 
  • All businesses that interact with customers or the public  
^Examples of business source from Know Risk article Public liability insurance for small business 


Could this happen to your business?

Accidents can happen anywhere, anytime.  

Don’t believe us? Here are a couple of real-life claims examples… 

Graphic Design Business – NSW 

A client visiting a graphic design business fell down a dip whilst walking through a doorway at the business premises, sustaining a hair-line fracture and ligament damage to her left foot. 

The customer commenced legal proceedings against the graphic design business to recover damages for pain and suffering, the cost of medical treatment as well as the loss of income whilst she was unable to work. The customer alleged that the dip was a risk to customers like her, that was foreseeable to the business yet the business left the dip unrectified. The public liability insurer appointed assessors to conduct an investigation and appointed lawyers to act on behalf of the business in defending the claim. The claim was resolved in favour of the customer with a payment made to her of $75,000 as well as defence costs (to the assessor and lawyer) of $30,000.  Without the public liability insurance, the graphic design business would have been liable for over $100,000!   


*As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice.