Guide
General liability insurance in Australia
Searching for general liability insurance? In Australia the cover you’re after is called public liability, usually sold as public and products liability. Here’s how the names map, what the cover does, and how to compare it.
- The Australian name for every US cover
- What public liability covers and excludes
What is general liability insurance called in Australia?
“General liability” is the name used in the United States for cover against claims that your business injured someone or damaged their property. In Australia the same cover is called public liability insurance, and most policies combine it with products liability, so you’ll see it sold as public and products liability.
business.gov.au describes public liability as cover for when someone dies, is injured or has their property damaged because of your negligence, such as food you serve making a customer sick or a fire your work causes.
US insurance names and their Australian equivalents
| Name used in the US | What it’s called in Australia |
|---|---|
| General liability (CGL) | Public liability, usually combined with products liability. |
| Errors and omissions (E&O) | Professional indemnity, for claims that your advice or service caused financial loss. |
| Workers’ compensation | Workers compensation, run under state and territory schemes and compulsory once you employ staff. |
| Commercial auto | Commercial vehicle for one vehicle, or trucks and fleets through a broker. |
| Business owner’s policy (BOP) | Business insurance pack: property, contents, theft, glass and business interruption in one policy. |
| Inland marine / equipment floater | Tools & equipment, for gear that moves between jobs. |
What public liability covers, and what it doesn’t
Every policy differs, so the Product Disclosure Statement (PDS) is the final word. These are the standard inclusions and exclusions.
Usually covered
- Injury to other people. A customer, client or passer-by hurt because of your business.
- Damage to other people’s property. You damage a client’s floor, fence or equipment.
- Legal costs of defending a covered claim.
- Products you sell or supply, when products liability is included.
Usually not covered
- Your employees’ injuries. That’s workers compensation.
- Your own property and tools. Those need their own cover.
- Financial loss from advice. That’s professional indemnity.
- Fixing your own faulty work. Policies cover the damage it causes, not the rework.
Limits and common exclusions
Allianz, for example, offers public liability limits of $5 million, $10 million or $20 million, and lists exclusions including:
Contracts and councils set the limit you need. $20 million is common for site work and footpath trading.
How to compare public liability through us
General liability questions
Is general liability the same as public liability?
Yes. General liability is the US name. In Australia the cover is called public liability, usually sold as public and products liability.
Does an Australian business need general liability insurance?
It isn’t a general legal requirement, but head contractors, councils, landlords and licences commonly require public liability before you start.
What limit should I choose?
Match it to your contracts, permits and lease. Limits are commonly $5 million, $10 million or $20 million.
Does public liability cover my own mistakes in advice?
No. Financial loss from your advice or service is professional indemnity.
Does public liability cover products?
Most Australian policies combine public and products liability, covering injury or damage caused by products you make, supply or sell.
Compare the covers
More guides
Sources
General liability