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• How does public liability work in WA?
• What does public liability insurance cover in WA?
• Who can benefit from public liability insurance in WA?
• How much does public liability insurance cost in WA?
• What should I consider for my public liability insurance in WA?
• Where can I find and compare public liability policies for Western Australian businesses?

Long story short

Public liability insurance covers your business for third-party injury or property damage

It can help cover medical, compensation and legal costs.

Coverage limits are typically $5 million, $10 million or $20 million

Your premium cost will depend on your coverage limit, the industry you operate in and your revenue.

Public liability cover isn’t a legal requirement for all businesses, but it can still be a must-have

Electricians need it to get their licence in WA, while other businesses might need it to secure contracts.

How does public liability work in WA?

WA’s public liability framework allows third parties to claim compensation from a business if they’re injured or their property is damaged in an accident that they allege the business neglected to prevent. Third parties can include customers, contractors, suppliers and members of the public, all of whom can claim compensation and for associated medical costs.

• The Civil Liability Act 2002 (WA) governs how liability is assessed, damages are awarded and insurance coverage operates in cases of personal injury and property damage.
• The Occupiers’ Liability Act 1985 (WA) requires businesses to take reasonable steps to ensure the safety of people and their property while they’re on business premises. This means reducing risks that can lead to injuries or property damage.

Whether it’s a nasty slip and trip, an untimely fallen branch or even emotional trauma from the incident, a public liability claim could sneak up on you in almost any shape or form, tossing a troublesome spanner in the works. That’s when public liability insurance comes in.

Public liability insurance is designed to help protect you and your business from third-party injury and property damage claims arising from negligence – such as ignoring a wet floor, failing to trim a tree or two and the like – providing coverage for compensation payouts, legal fees and other associated costs.

Fictional scenario: How public liability insurance would work for a Perth-based plumber

Penny runs a plumbing business in the suburbs of Perth. On an unusually frosty Friday morning, Penny gets called out to fix a gas hot water system.

As she’s working on the repairs, the client walks in, trips over some tools, slips, falls and ends up with a crooked wrist. Luckily, Penny has her public liability insurance policy to fall back on. She gets on the phone and spills the details to her insurer, who then confirms that she’s covered for the on-site incident.

What Penny pays*

• Her preferred excess: $500
• Ongoing monthly premium: $60

What Penny gets covered for

• The claimant’s settlement amount: $33,000

At the end of it all, Penny gets to keep her business running smoothly by avoiding an unnecessary financial fallout.

*Note: The pricing information, excess and premium amounts and compensation costs in this fictional scenario are purely fictional and do not reflect any actual figures that may be related to a public liability claim. Check your certificate of currency for your premium, excess amount and cover limit to be sure about your policy’s coverage.

What does public liability insurance cover in WA?

A standard public liability insurance policy in WA may cover the legal fees and compensation costs related to a public liability claim made against a business. Typical public liability claims arise from injuries or property damage suffered by third parties, including death and loss of property, because business owners neglected to make their premises safe. Product liability insurance, which is typically included in a public liability insurance policy, can also cover injuries or property damage caused by goods that are held by a business.

That said, public liability insurance may not cover your business’ liability in every instance, and exclusions can apply. Your coverage can also depend on the level of cover you choose, your risk level and the type of business you operate west of the Nullarbor. Here’s a handy comparison of what public liability insurance generally does and doesn’t cover.

What’s covered

The list is extensive and can include medical and compensation costs for claims related to third-party injury and property damage, including legal and defence fees. While your policy documents will typically provide a complete list of covered events, here are some common inclusions:

• Compensation for third-party property damage, including loss of property
• Compensation for death or injury of a third party because of your business operations
• Compensation for damage caused to goods not owned by you which are in your care, custody or control
• Legal costs awarded to a third party following a successful public liability claim
• Defence costs associated with defending a claim against your business

What’s not covered

Public liability insurance typically excludes things like employee injuries, claims related to asbestos and contractual liability. Here are some exclusions to look out for:

• Damage to your property
• Injuries to employees or damage to their property (covered by workers compensation insurance)
• Asbestos claims
• Contractual liability claims
• Known claims and circumstances
• Professional negligence claims (covered by professional indemnity insurance)

When choosing a public liability policy for your business, be sure to check the policy wording to better understand its coverage and the complete list of exclusions so you know exactly when you will and won’t be covered.

Helpful tip

Public liability insurance may not be legally required by most businesses in WA – but it can be crucial to scoring a contract. Clients from any industry, especially the high-risk ones like construction, may choose to pass on your tender if you don’t have enough public liability coverage – and they’re well within rights to do so. The same can apply to contractors if a workplace doesn’t have public liability cover. So, why limit your business opportunities when you can get public liability insurance to level the playing field?

Adrian Bennett

General Manager for General Insurance

Who can benefit from public liability insurance in WA?

In WA, public liability insurance can come in handy for businesses that interact with members of the public or have visitors to their business premises if an unexpected accident leads to a public liability claim.

In other words, most businesses in WA could stand to benefit from having public liability insurance.

Some of the types of businesses that should consider public liability insurance include:

• building and construction companies
• arts, entertainment and recreational services
• manufacturing companies
• retail and wholesale trade businesses
• accommodation and food service businesses.

Some WA trades are legally required to hold public liability insurance before they can commence work under a state-issued licence. In other cases, public liability cover might be a contractual requirement of their industry.

For instance, WA’s Electricity (Licensing) Regulations 1991 state that electrical contractor licences may only be issued if the individual applying for the licence holds a valid public liability insurance policy. Some clients may choose to engage with a sole trader or contractor only if they have public liability insurance.

Some WA councils make public liability insurance mandatory for events conducted on premises. For example, City of Karratha and City of Wanneroo require registered businesses such as security companies, food retailers, promotion companies and similar to have public liability insurance before they can use their council facilities.

How much does public liability insurance cost in WA?

In WA, professionals (occupations that typically need specialist training and qualifications) could pay around $37per month on average for public liability insurance or retailers could pay around $60 per month, according to BizCover’s customer data.¹BizCover’s 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. Given that premiums depend on a range of factors, including the level of cover you choose, your business type and size, and the insurance provider you choose, the actual cost of public liability insurance can vary. For example, a small plumbing business could pay upwards of $60 per month, while a management consulting firm could pay upwards of $35 per month for a public liability insurance policy.²The pricing information provided is based on insurance quotes available through the BizCover platform as of April 2025. The quotes reflect indicative premiums for sole traders with annual revenue up to $50,000, a coverage level of $5 million, and an excess of $500. This information is intended as a general guide only and does not constitute personal financial advice. It does not consider your individual objectives, financial situation or business needs. All pricing includes applicable monthly platform and credit card fees and is subject to change without notice.

So, whether you own a restaurant in Yagan Square or run a retail store on Hay Street, chances are your public liability insurance premium will differ.

What should I consider for my public liability insurance in WA?

Choosing a public liability policy in WA comes down to several key factors, including the cost, any exclusions and the coverage limit. It helps to consider if you need a minimum level of cover for your contracts, tradie licence, your industry body membership or if certain kinds of accidents are more common in your line of work and what the potential claim costs might be. When it comes to choosing a suitable level of cover, it’s also important to make sure you get adequate coverage or risk leaving your business underinsured. With BizCover, you can choose between a coverage limit of $5 million, $10 million and $20 million.

And of course, be sure to do your research and read the policy wording before you settle on what you think is an appropriate policy for your business needs.

Where can I find and compare public liability policies for Western Australian businesses?

You can use iSelect’s comparison tool to look for public liability insurance that can protect you and your business from a costly liability claim. Through our partnership with BizCover, we can help set up your WA-based business with a range of business insurance policies and other cover options, including public liability cover.

Be it a bed and breakfast in Broome or a plumbing outfit in Perth, operating your own business is tough enough with managing staff, finding ways to attract customers and keeping up with the competition. Let us help by narrowing down your search for public liability insurance, so your business (and your peace of mind) is protected.