Public Liability Insurance in NSW

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How does public liability work in NSW?

What does public liability insurance in NSW typically cover?

Is public liability insurance compulsory in NSW?

Which businesses can benefit from public liability insurance in NSW?

How much does public liability insurance cost in NSW?

What factors affect the cost of public liability insurance in NSW?

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

Where can I find and compare public liability policies?

Long story short

Public liability insurance isn’t mandatory in NSW, but it can often be necessary

You’ll likely need it to sign a lease, win contracts, or host public events.

Coverage typically includes third-party injury, damage to property, and legal costs

It could help cover medical bills, lost income, repairs, and court fees if someone sues your business.

Your premium depends on the nature of your business

Sole traders and consultants may pay less, while higher-risk industries pay more based on size and location.

How does public liability work in NSW?

Picture this: you’ve waited all your life to open your very own organic supermarket on Bondi’s main drag. Your first customer comes in, a jar of artisan honey falls off a shelf, and that first customer suffers a broken toe. 

Unfortunately, accidents can happen – but when they do, public liability insurance could help protect you financially. 

Consider public liability insurance a financial safeguard. It can offer protection if a member of the public suffers an injury or property damage as a result of your negligent business activities. The injury or damage could happen on your premises, like in the case of the wayward honey jar, or when a customer uses your goods and services at home. 

In NSW, public liability claims come under the Civil Liability Act 2002 (NSW), which governs how claims for damages due to personal injury and some types of economic loss are handled.  

What does public liability insurance in NSW typically cover?

Public liability claims can be nothing if not expensive. And when you’re already forking out thousands on your business, a costly accident is the last thing you need. 

Public liability insurance could cover you and your business for: 

Third-party injury

If a member of the public gets injured or suffers psychological damage, you could be up for medical expenses, compensation for their lost income, or a lump sum payment.

Third-party property damage

Depending on how nasty the damage is, you might have to pay to repair or replace someone’s property.

Legal costs

If the matter ends up in court, you could be facing all kinds of expenses, from lawyer fees to court admin fees.

It doesn’t typically cover claims related to employee injuries, damage to your property, professional negligence, or contractual liability. 

Helpful tip

Public liability claims are some of the most common types of common law claims brought to NSW courts. And being at the receiving end of one could prove costly to your finances, your reputation and, quite frankly, your business’s survival. In that light, public liability insurance is possibly the most important type of insurance you can get. 

Before you sign up for public liability insurance, consider the types of accidents your business is likely to encounter and how much a claim could potentially cost. Some contracts or industry bodies may even require a minimum level of cover, as could your business or trade licence.

Adrian Bennett

General Manager for General Insurance

Is public liability insurance compulsory in NSW?

In NSW, insurance requirements can vary from industry to industry and business to business. As far as public liability insurance is concerned, businesses in NSW aren’t obligated to hold it. But you might run into a few instances where it’s necessary. 

For example, if your business is renting out commercial premises (like a retail store, hairdressing salon, or acupuncture clinic), your landlord may require public liability insurance before they’ll give you a lease. 

You might also need it before signing a job contract with an organisation, if you own a restaurant, or if you’ve got a construction site.

Which businesses can benefit from public liability insurance in NSW?

Loads of NSW businesses could benefit from public liability insurance, such as: 

• restaurants and cafes
• retail stores, food shops and supermarkets
• construction companies and tradies
• contractors and freelancers who work in external offices
• cleaners and gardeners
• healthcare providers
• beauty and hairdressing clinics
• real estate agents. 

In a nutshell, many businesses take out public liability insurance to protect themselves against injury or property damage claims from members of the public. 

You also might want to consider it if: 

• the general public (think customers, clients, delivery people, tradespeople and so on) visit your place of business – including if you operate your business from home
• you conduct business off-site and interact with the general public – for example, if you’re visiting offices or clients’ homes
• you sell products consumed by the general public (product liability cover is typically available under a public liability policy). 

How much does public liability insurance cost in NSW?

The cost of public liability insurance in NSW can depend on a whole host of factors, including your industry. Here are some rough monthly costs of public liability insurance for common trades and professions in NSW. 

Source: BizCover – Public Liability Insurance NSW 

What factors affect the cost of public liability insurance in NSW?

Insurance providers consider several factors when calculating your premiums: 

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

To ensure you get the right policy for your business, there are a few things to think about. 

• The coverage limit: This refers to the highest amount your insurer will pay if someone makes a claim. It’s important because it reduces your chances of facing a hefty bill.
• Policy exclusions: Check what’s not covered so you don’t come up against any unpleasant surprises.
• Premiums: While you obviously want your policy to be cost-effective, you don’t want to get caught out with inadequate protection. Ensure you go for a balance of cost and coverage. 

Where can I find and compare public liability policies?

Get your business insurance from someone who understands the business of insurance. If you’re keen to take out public liability insurance for your small business, you can compare a range of business insurance policies with iSelect, in partnership with BizCover.