Public Liability and Product Insurance

Protect your business from the financial risk of liability claims – giving you the certainty you need to trade with confidence.

Get a quote

Call (02) 4969 8100

What is public liability and product insurance?

What is public liability insurance?

If an accident or unforeseeable incident causes damage or injury to someone (other than your employees), you may be found legally liable to cover the costs.

Public liability insurance can help to protect your business from the financial risk of liability claims – giving you the certainty you need to trade with confidence.

Without public liability insurance, legal bills and compensation for these claims could disrupt your cash flow or ruin your business. Whether you run a business from home, work on-site at your clients’ offices, or have a team and an office, public liability insurance can protect you from these unexpected costs.

What is product liability insurance?

No matter how stringent your company is, mistakes can happen. For example, you may design or sell a product that causes a customer harm.

Even if you’re not at fault, you could risk serious financial damage from legal and court costs if a customer decides to sue you.

Product liability insurance is designed to help protect your business if you’re sued because a product you sell, assemble or supply has caused harm to a person or property.

How you can be protected with public liability and product insurance

Public and products liability insurance helps protect your legal liability to third parties, including clients, customers and the public for injury or damage to their property, caused by your business. It can even cover emotional distress or shock that your business causes another person.

It will generally pay your costs of investigating, defending, and settling claims, as well as any compensation payment you are found legally liable to pay.

Depending on your policy, public and products liability insurance can cover:

Personal injury

If somebody is wrongfully injured by your actions or your product, public and products liability insurance can cover you for your liability to pay damages to the claimant

Property damage

If property is damaged due to your actions or your product, public and products liability insurance can cover you for your liability to pay damages to the claimant

Advertising injury

Liability arising out of advertising carried out by or on behalf of the insured

Do I need public liability and product insurance?

While public and product liability insurance isn’t mandatory for most businesses, it is recommended. That’s because the unpredictable nature of accidents makes them hard to prevent – and the costs of being sued can be extraordinarily high.

Case study

The offshore manufacturer of George’s sunscreen accidentally contaminates the product with chemicals that cause customers to break out in a painful rash.

They file a class suit against George to compensate them for the injury. Luckily, George’s policy covers him for the costs of going to court and the damages awarded to the customers.

Tips or other things to know about public liability and product insurance

Exclusions, the excess you need to pay, and limits of liability can vary greatly depending on your insurer. Policies generally won’t include cover for:

Cost of rectifying faulty workmanship
Damage to your own product
Claims by employees
Claims arising out of the use of a registered motor vehicle
Claims related to asbestos

Our brokers can help you compare public liability and product insurance and tailor a public liability and product insurance quote to ensure you are adequately covered.

Have a question? We can help

What does a public liability insurance cover?

Public liability insurance will generally pay your costs of investigating, defending, and settling claims, as well as any compensation payment you are found legally liable to pay.

This could include injury to someone else, damage to someone else’s property, legal costs, injury, or damage caused by your products or services and staff negligence.

Who should buy public liability?

While public and product liability insurance isn’t compulsory for all types of companies, it is recommended. That’s because the unpredictable nature of accidents makes them hard to prevent – and the costs of being sued can be extraordinarily high.

How much does public liability insurance cost?

Given the various industries and occupations public liability insurance can cover, also means your public liability insurance cost can vary greatly. This is due to several key factors including:

The type and nature of your business
Your business turnover and size
The amount of insurance cover your business needs

Other factors that may play a part in determining your public liability insurance cost is the location your business; what is included and excluded by the policy; and the insurance provider you choose.

While cheap public liability insurance can seem attractive on the surface it is important to ensure the policy covers you for the business activities you undertake, and the insurance policy and company will respond as intended when there is a claim.

We know that navigating the world of insurance can be complex and confusing. Our brokers compare the myriad of insurance options on the market for you, providing expert advice to implement your chosen plan.

Is it a legal requirement to have public liability insurance?

Public liability insurance is not required by all companies in Australia, however, if you own a business, you may be liable for damages or injuries to another person or property.

So, public liability is recommended for most businesses.

Our brokers can help you compare public liability policies and find the best public liability quote to suit your needs.

What is the minimum public liability insurance?

The minimum cover available for Public Liability insurance is $5m. However, $10m or $20m is a more frequently purchased level of cover.

What insurance do you need for a small business?

Having the right insurance can help to protect your business, your customers, and your income.

Some forms of insurance are required by law.

Workers’ compensation insurance is compulsory if you have employees
Third party personal injury insurance is compulsory if you own a motor vehicle
Public liability insurance covers you for third party death or injury and is compulsory for certain types of companies

In many business arrangements formalised with a contract, evidence of public liability insurance must be provided.

What is public liability insurance for sole traders?

As a sole trader or tradie, you do a lot to protect yourself at work, so you should understand the benefits of public liability insurance for sole traders.

Hazards like power tools, machinery, and volatile materials are just some parts of the job that could put people at risk. The public liability insurance for sole traders can give you cover against these risks and more, helping to safeguard the future of your business.