Public Liability Insurance in Queensland

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How does public liability work in Queensland?

What does public liability insurance in Queensland typically cover?

Who can benefit from public liability insurance in Queensland?

How much does public liability insurance cost in Queensland?

What should I consider when choosing public liability insurance in Queensland?

Where can I find and compare public liability policies?

Long story short

Public liability claims in QLD (like everywhere) can cost hundreds of thousands

A business can be held liable for injury, death, or damage caused to third parties – and the bills can stack up fast.

A public liability policy can help cover compensation for third parties

Cover can include hospital bills, compensation and legal costs if a claim is made against your business.

Some industries and trades in QLD legally require public liability insurance

Electricians and other sole traders may need cover to stay licensed, sign contracts, or protect against potential claims.

How does public liability work in Queensland?

From Mount Isa to Bundy and Cooktown to Coolangatta, you might want to consider having public liability cover in case things take a turn for the worse. 

In Queensland, public liability is largely governed by the Civil Liability Act 2003. The Act explains that business owners have a duty of care towards ensuring the safety of third parties and outlines how they can be held accountable if they breach that duty. (Spoiler – it’s expensive.) 

If your business neglects its duty of care and it results in bodily harm or damage to the property of a third party, said third party can lawyer up and slam you with a public liability claim that could cost to your business in the range of around $50,000 to $350,000, or higher – ouch! 

Luckily, you can take out public liability cover as a safeguard. A public liability insurance policy is designed to protect you and your business from claims related to third-party personal injury or property damage. 

What does public liability insurance in Queensland typically cover?

Public liability insurance protects your business against third-party claims related to personal injury, death, or damage to property stemming from your negligent business activities. And what you’re covered for can depend on the policy itself. 

Always take the time to review your policy’s wording to understand the specifics of your coverage. There may be exclusions and limitations, such as events occurring outside the policy period, contractual liability, or personal injury related to asbestos or pollution. 

Helpful tip

Not all claims end up in a judicial cliffhanger. In fact, most public liability claims are settled outside the courthouse. And sometimes, you and your business might be innocent – but that doesn’t necessarily mean you’re off the hook. You may still need to pay the claimant’s settlement, and there’s also the cost of hiring a lawyer to either defend you in court or negotiate with the third party. Fortunately, public liability insurance can cover you on both fronts, making it an important protection regardless of how a potential claim might go. 

Adrian Bennett

General Manager for General Insurance

Who can benefit from public liability insurance in Queensland?

Public liability insurance isn’t always compulsory, but it’s often well worth investing in – just like mozzie repellent for the post–summer storm blitz. 

Whether you interact with customers, conduct business directly with the general public, or sell a product that can be consumed or used, it’s important to ensure both you and your business are protected against potential risks. 

You may want to consider taking out public liability insurance if you operate a business in one of the following industries.

Accommodation and food services

Motels, restaurants, and cafes

Rental services

Rental, hiring, and real estate services

Administrative and support services

Employment services, cleaners, gardeners, and pest control

Retail and wholesale trade

Electrical goods, food and grocery, furniture, homewares

Some industries in the Sunshine State might need public liability insurance as part of their licensing requirements. For instance, electricians who run their own business in Queensland are legally required to hold a minimum of $5 million in public and product liability insurance coverage (as well as $50,000 in consumer protection insurance) to receive, maintain, or renew their contractor licence. 

How much does public liability insurance cost in Queensland?

On average, you can expect to pay around $40 to $70 a month for public liability insurance in Queensland. Of course, your premium can depend on a range of different factors underscored by the level of risk your business represents. 

For perspective, an electrical contractor working on the CopperString might warrant a higher premium than, say, a mom-and-pop podiatry practice in Aspley. 

When it comes to deciding premiums, most insurance providers tend to focus on four key elements: 

• The size of your business: Larger businesses with higher turnover and more staff may face a greater risk of liability claims.
• The type of business you run: Some industries, such as construction or hospitality, may come with a higher level of risk.
• Where your business is located: From stamp duty charges to extreme weather to crime rates, location tends to throw in a few variables.
• The amount of cover you need: Standard coverage limits are usually $5 million, $10 million or $20 million; higher coverage typically means a higher premium. 

While it can be tempting to skimp on insurance coverage in favour of saving on premiums, being underinsured could cause your claim to be knocked back. It’s worth taking out adequate insurance cover to make sure you’re protected. 

Fictional scenario: How public liability insurance protected a Gold Coast electrician when an installation job went haywire 

Ryan, an electrician based on the Goldy, was installing solar panels at a customer’s home in Mermaid Beach. Ryan and his team were required to run cables through the roof space. However, they were unaware of heavy objects near an access hatch leading down to the kitchen. 

Unfortunately, one of Ryan’s less experienced sparkies accidentally knocked over a heavy object causing it to fall and damage a benchtop that the customer was particularly fond of. Shocker! 

Thankfully, in what retrospectively must’ve been a light-bulb moment, Ryan had taken out public liability insurance which helped cover the costs of the damages incurred. 

What should I consider when choosing public liability insurance in Queensland?

When it comes to choosing public liability insurance for you and your business, it’s important to examine the specific risks that your business could be exposed to. It’s also worth considering factors like the cost of your public liability insurance, any policy exclusions, and coverage limits. 

Where can I find and compare public liability policies?

Whether you run your own plumbing business in Brissy or you’re a café-owner up in Cairns, it pays to be protected with public liability insurance. Explore a range of public liability policies we’ve put together in partnership with BizCover. 

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 or Product Disclosure Statement (available on our website). Please consider whether the advice is suitable for you before proceeding with any purchase. Target Market Determination document is also available (as applicable). 

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