Public Liability Insurance In WA

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How does public liability work in Western Australia?

What does public liability insurance typically 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?

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 required by law in WA, but it might still be a must-have

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

How does public liability work in Western Australia?

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. In Western Australia, businesses also have a duty of care towards the safety of their customers, contractors, suppliers, and members of the general public. 

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 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. 

• 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 that occupiers of a business’ premises to take reasonable steps to prevent people entering the premises from taking injury or damage to their property due to the business’ negligence. 

What does public liability insurance typically cover in WA?

First off, public liability cover leans mainly towards third parties. What you’re covered for can depend on the policy you take out and the type of business you operate west of the Nullarbor. That said, public liability insurance may not cover your business’ liability in all instances. Here’s a handy comparison of what public liability insurance generally does and does not cover. 

Some public liability policies may include product liability cover with a separate coverage limit; so you might have to tailor your policy to your business needs. Also, be sure to check your policy’s wording for the complete list of exclusions to know exactly when you will and won’t be covered. 

Helpful tip

Public liability insurance may not be legally required for the most part in Western Australia – 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?

Generally, public liability insurance can be beneficial to businesses with high-risk activities, those that interact with the public, or have visitors to their business premises – doesn’t exactly narrow it down does it? Well, in theory, nearly any business from Drysdale to Denmark could be liable for third-party injuries or property damage. 

Here are just some of the types of businesses that should consider public liability insurance. 

• Building, and construction companies
• Arts, entertainment and recreational services
• Manufacturing companies
• Retail and wholesale trade businesses
• Accommodation and food service businesses. 

Across Western Australia, some businesses are legally required to hold public liability insurance before they can commence work onsite. In other cases, public liability cover is a requirement of their industry or licensing body. 

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. Many clients may choose to engage with a sole trader or contractor only if they have public liability insurance. 

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

How much does public liability insurance cost in WA?

Whether you own a restaurant in Yagan Square or run a retail store on Hay Street, chances are your public liability premium will differ. The cost of public liability insurance depends on a range of factors, including the amount of coverage you need, the size of your business, and your business type. 

Fictional scenario: Penny the Plumber

Penny runs a plumbing business in the suburbs of Perth – just she, her trusty van and the apprentice who’s mostly in charge of the playlists. 

On an unusually frosty Friday morning, Penny gets called out to fix a wonky hot water system at a client’s rental. Should be easy enough. 

As she’s loosening up a stubborn valve, it suddenly gives way and the whole thing goes boom – the pipes burst, water’s everywhere and the laundry’s flooding fast. 

To make thing worse, the tenant rushes in, slips, stacks it hard and ends up with a crooked wrist. Penny’s client, the landlord, isn’t going to be too happy about the damages either. 

Luckily, the situation doesn’t get too soggy because Penny has her public liability insurance policy to fall back on. She gets on the blower and spills the details to her insurer who then confirms that she’s covered for the incident. Happy days! 

What Penny pays	What Penny gets covered for
Her preferred excess: $500 Ongoing monthly premium: $60	The tenant’s medical costs: $3,500 The landlord’s repair bill: $3,000 The payout when the tenant decided to make a claim: $33,000.

At the end of it all, Penny gets to keep her business running smoothly, and herself away from financial ruin. More importantly, she gets to enjoy her Saturday night with some fish’n’chips and cheering on the Eagles. 

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

Choosing a public liability policy often comes down to several key factors, including the cost, any exclusions and the coverage limit. 

When it comes to choosing a suitable level of protection, it’s important to make sure you get adequate coverage, or you could risk leaving your business underinsured. Typically, you can choose between a coverage limit of $5 million, $10 million, and $20 million. 

It would also help to consider if: 

• you need a minimum level of cover for your contracts, trade licence, or your industry body membership
• certain kinds of accident are more common in your line of work and what the potential claim costs might be. 

Be sure to do your research and read the policy wording to make sure you pick an appropriate policy for your business needs. 

Where can I find and compare public liability policies?

Stuck in Eucla comparing business insurance? Use iSelect’s comparison tool and get out of your rut. We’ve in partnered with BizCover to help you find a public liability insurance policy that can protect you and your business from a costly liability claim.