Public liability insurance may not cover injuries or property damage suffered by business owners or staff members, nor might it cover claims related to causes such as faulty workmanship, professional negligence or product recalls. Public liability insurance will also unlikely cover claims made outside the policy period or those arising from illegal business activities. To get a complete picture of what’s not covered by public liability insurance, read through the policy wording in the Product Disclosure Statement, keeping an eye out for exclusions and conditions of cover.

Here are some common exclusions you’ll come across in a typical public liability insurance policy:

• damage to your or your business’s property
• injuries suffered by you
• employee injuries or property damage (the former is covered by workers compensation)
• faulty workmanship, contractual liability or professional negligence
• criminal acts or intentional damage or injury
• liquidated or punitive damages
• incidents involving aircraft products, asbestos or gradual pollution.

No, public liability insurance is not meant to cover injuries or property damage that employees themselves suffer, but it can cover injuries or property damage caused by your employees to third parties while they’re on the job.

Instead, your employees’ injuries or property damage fall under workers compensation – a type of insurance that covers your employees if they get injured or sick at work. Workers’ Compensation is mandatory for any business that has employees, no matter where you operate in Australia.

Different types of employees may or may not be covered by workers comp. If you have apprentices, for example, they’ll be included in your workers compensation policy, but other workers such as independent contractors and unpaid interns won’t. Check with your local state body to make sure.

Note: BizCover does not offer Workers Compensation insurance. Workers Compensation is regulated by each state and territory, and each scheme has its own rules, regulations and legislative framework.

Public liability insurance isn’t mandatory for all Australian businesses, but it is mandatory for certain kinds of businesses in certain states. All plumbers operating in Victoria need public liability insurance, as do electricians in Victoria, Queensland and Tasmania.

Public liability cover can also be a contractual requirement for certain types of businesses. For example, if you’re working on a public-facing job site, such as a building site or shopping centre, you might also require public liability insurance before you can start work – usually, this will be outlined in your job contract. Some businesses also need to take out public liability insurance before they can sign a lease on their premises.

For more info on the public liability insurance requirements in your state, have a look at some of our state-specific pages:

• • Public liability in New South Wales
  • Public liability in Queensland
  • Public liability in Western Australia
  • Public liability in South Australia
  • Public liability in Victoria.

To make a claim on your public liability insurance policy, first, you’ll notify your insurer soon after the incident. Then, you’ll need to fill out a claim form and gather all supporting documents such as photos of the incident, letters or emails from or contracts with the claimant and any repair quotes or investigation reports related to the incident.

To make the claims process quicker and more efficient, follow these steps:

1. Notify your insurer as soon as possible after the incident.
2. Fill out a claim form with a comprehensive rundown of the incident and any details about the third party’s allegations against your business.
3. Provide supporting documentation such as photos, videos, written correspondence, contracts between you and the third party, and any other relevant info.
4. Wait for your insurer to assess your claim.

Business including retail and hospitality businesses, tradies, allied health professionals and fitness providers could all benefit from having public liability insurance. Generally, any kind of business that faces the risk of third-party claims from customers, suppliers or members of the public can get public liability insurance to help offset that risk. Think those that work on external job sites or have members of the public visiting their premises.

Even business owners who work from home may benefit from public liability insurance. For example, if they’ve got clients or suppliers visiting their home office and something happens, it could provide valuable financial protection.

Some businesses that may want to consider public liability insurance include:

• retail stores
• restaurants and cafes
• construction companies
• tradespeople (such as electricians and plumbers)
• sole traders
• event organisers
• freelancers and consultants who work on job sites
• beauty salons and spas
• fitness instructors and gyms
• medical clinics
• photographers and videographers
• real estate agencies
• childcare centres
• catering businesses
• market stall operators
• manufacturers
• cleaning companies
• landscapers and gardeners
• health and wellness practitioners
• venues and rental spaces
• tour operators.

Public liability and professional indemnity insurance differ in the type of claims they’re meant to cover. A public liability insurance policy is designed to cover claims for third-party injuries or property damage, while professional indemnity cover offers protection for claims related to financial losses suffered by a third party.

Expanding a little further, public liability insurance helps minimise your financial risk if a third party is injured or something happens to their property and your business is responsible – such as a slip and fall on your premises due to a wet floor. On the other hand, professional indemnity insurance may offer financial protection if a third party suffers a financial fallout due to negligence or errors arising from your professional services or advice – a good example would be if you recommended that a client install a particular software system and it resulted in a data breach.