Public Liability Insurance Canberra

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How does public liability work in Canberra?

What is public liability insurance?

Is public liability insurance mandatory in Canberra?

How much does public liability insurance cost in Canberra?

What does public liability insurance cover?

How could public liability insurance protect my business?

What kinds of businesses could benefit from public liability insurance?

What should I consider when choosing public liability insurance?

What’s an easy way to find public liability cover for my business?

Long story short

Public liability insurance helps cover the costs of third-party claims

It could help with medical bills, repair costs, settlements, and legal fees.

Though not always legally required in the ACT, public liability insurance could be essential in some scenarios

Trade licences, government contracts and industry memberships may require minimum cover limits.

Typically, public liability insurance covers third‑party injury, property damage, and legal costs

It generally doesn’t cover claims for employee injuries, your own property, professional negligence or faulty workmanship.

How does public liability work in Canberra?

Business owners in Canberra have a duty of care to ensure the safety of customers, clients, or any member of the public who might interact with their business. In other words, third parties. This duty of care also extends to the third party’s property. The Civil Law (Wrongs) Act 2002 guides how such public liability claims are dealt with in the Australian Capital Territory.

So, if your business’ activities in the bush capital accidentally cause personal injury or property damage to a third party, they may make a public liability claim against your business, seeking compensation and other damages. That’s where public liability insurance might step in and take the hit.

What is public liability insurance?

Public liability insurance is a type of business insurance policy that can safeguard your business from unexpected financial losses due to a public liability claim. A public liability insurance policy does this by helping cover things like compensation, medical bills, and legal costs.

Being an important part of a business’ risk management, public liability insurance is a common, and sometimes compulsory, type of business insurance within the trades, allied health, fitness, and professional services sectors.

Is public liability insurance mandatory in Canberra?

Public liability insurance is not legally required in Canberra or in the broader ACT region, but it might be mandatory for certain types of jobs or businesses that deal directly with customers, clients, partners, or suppliers.

For example, you might need a minimum cover limit of say, $5 million to operate under a trade licence, as part of a contract’s terms, or even to be a member of a tradies association or a similar organisation. Some ACT Government construction contracts may require that you have a minimum of $20 million in public liability cover to be eligible.

Bear in mind, there are other types of insurance that are mandatory across Australia such as workers compensation insurance (if you have employees or contractors) or professional indemnity insurance (for example, if you’re an NDIS provider), which are not covered under a public liability insurance policy.

Note: While BizCover doesn’t currently offer workers’ compensation insurance, we may be able to help you find other types of business insurance that you think might be a great fit for your business.

How much does public liability insurance cost in Canberra?

Based on BizCover’s customer data, public liability insurance costs $39 per month* on average. Your public liability insurance premium can also depend on the risks your business is exposed to and the level of cover you choose.

When calculating premiums, insurers will typically consider:

• the risks of the industry
• your cover amount
• the number of employees and annual turnover
• your claims history.

Your premium can also depend on the insurer itself, so it’s a good idea to compare and weigh up policies from multiple insurance providers before you settle on one.

* Based on BizCover’s customer average monthly payment report from 1 July 2023 to Jun 2024 and presented as a guide only. It may not reflect pricing for your particular business, as individual criteria will apply.

What does public liability insurance cover?

A public liability insurance policy covers the cost of claims related to third-party injury or property damage. Think compensation, the cost of medical treatment, repair costs for property damage, or legal fees. Here’s what would typically fall under public liability insurance cover.

Personal injury

Injuries from slips, trips, falls, and other similar accidents due to a business’ negligence are some common causes of claims that public liability insurance can help cover.

Property damage

Your public liability policy could cover the repair costs for damage to a property that’s owned by a third party, whether the damage occurred on your business’ premises or at a worksite.

Legal and defence costs

Claims usually involve the third party taking legal action against your business, in which case, public liability insurance could cover things like lawyers’ fees, court costs, or similar.

A public liability insurance policy typically includes product liability insurance, which could be a lifesaver if you manufacture, sell, or supply causes third-party injury or property damage.

And as with any insurance product, there are events that public liability insurance won’t be able to cover, such as claims related to:

• employee injuries or damage to property that’s owned by you or the business
• professional negligence, product recall, or the costs of rectifying faulty workmanship
• contractual liability or liabilities assumed under a contract that are outside of common law
• asbestos, gradual pollution, aircraft products, or liquidated or punitive damages.

To ensure that you’re not caught off guard when it comes to your coverage, read through the policy wording in the product disclosure statement (PDS), paying close attention to the exclusions and conditions of cover.

How could public liability insurance protect my business?

Public liability insurance can help safeguard your business by covering the financial losses that may arise when a third party claims injury or property damage against your business. These losses typically include compensation payouts, medical expenses, and legal defence costs and could be between thousands and millions of dollars.

While accidents can happen out of nowhere and third-party claims could come in any shape or form, here are a couple of broad examples of how public liability insurance might help protect your business.

• If a customer is injured after tripping on an unsafe surface within your business premises, public liability insurance could cover medical bills, legal costs, and any settlements awarded to the claimant.
• If a business activity results in property damage, such as a construction tool falling onto a client’s vehicle and damaging it, public liability insurance could help with compensation and repair costs.

By absorbing the unexpected expenses of a third-party claim, public liability insurance could help curb disruption to your business operations and maintain steady cash flow – both crucial aspects, especially if you run a small business or operate as a sole trader in the ACT.

What kinds of businesses could benefit from public liability insurance?

Any type of business that interacts with their customers, clients, or members of the public and their property might find it worth having public liability insurance. Smaller businesses, in particular, might find it harder to recover from a public liability claim without appropriate insurance cover.

The types of businesses that might find public liability insurance useful include:

• trades or sole traders among the likes of plumbers, electricians, carpenters, construction, or landscaping
• hospitality services such as cafes, restaurants, food stalls, or caterers
• fitness and wellbeing including yoga studios, gyms, beauty salons, or hairdressers
• healthcare or allied health services such as occupational therapy, disability care, or aged care.

Helpful tip

Every business is unique and so are its insurance needs. A café in Coolo with lots of foot traffic has a higher potential for slips, trips, and falls while a realtor operating in bustling Belco might receive a claim for failure to disclose material facts. And almost every business with a digital footprint has potential cyber liability issues! The point is – don’t stop at just public liability insurance and other obvious types of policies, because your business might need more protection than you think. So, it might be a good idea to do your research!

Adrian Bennett

General Manager for General Insurance

What should I consider when choosing public liability insurance?

With public liability insurance, it’s important to consider how much your business interacts with third parties. It also helps to think about the size of your business in terms of revenue, turnover, and cash flow, as well as the number of people you employ – all of these aspects can add to your business’ risk exposure.

Also consider if your level of cover matches what your business needs – for starters, look at the common risks your business faces and those of the wider industry, as well as any legal or contractual requirements that come with your occupation.

After looking at risks, it’s time to think about premiums – a cheaper policy might be easier on the pocket, but its coverage can be limited. Consider if you can afford to go out of pocket for claim costs that exceed your cover limit. On the other hand, paying a higher premium for a higher coverage might be worth it if you want more protection for your business.

What’s an easy way to find public liability cover for my business?

Using a comparison service can be an effective way to compare multiple policies at once without the hassle of spending time getting individual quotes from multiple providers. It’s quicker, more convenient, and can help open up your cover options.

We’ve teamed up with BizCover to bring you an online comparison tool that might help address your business’ insurance needs – whether it’s for a boutique winery up in the Brindies or a market stall that sells handmade cat hats at the EPIC. Simply enter your business’ details on the tool and get access to a range of public liability insurance policies as well as other types of business insurance that may be available to keep your business protected.

* BizCover Customer Average Monthly Payment Report is based on 1 July 2023 to 30 June 2024 and presented as a guide only. It may not reflect pricing for your particular business, as individual criteria will apply.

This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording.

The provision of the claims examples is for illustrative purposes only and should not be seen as an indication as to how any potential claim will be assessed or accepted. Coverage for claims on the policy is determined by the insurer, and not BizCover.

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