Public liability insurance

Not for every business. business.gov.au notes that some states and territories require it for certain occupations. Leases, contracts, council permits and event organisers can also require it. Check your licence conditions and anything you’ve signed.

No. Injuries to your employees are covered by workers compensation, which employers must hold. Public liability covers people outside your business, such as customers, clients and the public.

Public liability covers injury to people and damage to their property caused by your business activities. Professional indemnity covers claims that your advice or professional service caused a client a financial loss. Many consultants and allied health practitioners hold both.

Usually, when products liability is included, as it is in many small business policies. It covers injury or property damage caused by goods you make, distribute or sell. Check the PDS, especially if you import goods or export to the USA or Canada.

It depends on what you do, your turnover and staff, your claims history, the limit you choose and whether you sell products. A low-risk business pays less than a high-risk trade. Comparing quotes is the quickest way to see what your business would pay.

A document from your insurer confirming you hold the policy, its limit and the period it covers. Head contractors, landlords and councils may ask to see one before you start work.

Injury to people outside your business, damage to their property, and the legal costs of defending a covered claim. Most Australian policies also include products liability for goods you sell or supply. It doesn’t cover your employees, your own property or your professional advice.

Match the limit to your contracts, permits and lease. Head contractors and councils often ask for $20 million; $5 million and $10 million suit smaller jobs. A higher limit usually costs less extra than people expect, so compare both.

The phrase means three different things. Compulsory third party (CTP, or a green slip in NSW) comes with vehicle registration and covers injury to people in a crash. Third party property car insurance covers damage your vehicle does to other people’s property. Public liability insurance covers injury or property damage your business causes to other people in the course of its work. Only the last one is business cover, and it is the one this page describes.

No single law makes it compulsory for every business, but it is required to hold some licences (electrical contractors in Queensland, plumbers in Victoria), to trade in many council spaces and markets, and under most commercial contracts and leases. In practice almost every business that works on other people’s premises or serves the public is asked for a certificate of currency.

The premium follows your occupation, turnover, the limit you choose ($5 million, $10 million or $20 million), your claims history and the excess. The cheapest policy that fits is usually the lowest limit your contracts and council actually accept, with a higher excess, bought before a claim rather than after one. Choosing a lower limit than a client requires saves nothing, because the certificate will be rejected.

Yes, and most market operators and councils will not let you trade without it. The policy covers injury or property damage to visitors caused by your stall, your products or your set-up. Stallholders who sell food or products should check that products liability is included, which it is in most public and products liability policies.