Compare online
Public liability insurance in NSW
Public liability covers claims for injury and property damage caused by your business. In New South Wales, the requirements usually come from councils, contracts and leases, and the price includes Revenue NSW stamp duty. Here’s what applies, and how to compare.
- No phone number needed to request quotes
- NSW small business stamp duty exemption explained
Do you need public liability insurance in NSW?
It isn’t compulsory for every NSW business, but you’ll often be asked for it. Councils make it a condition of approvals such as outdoor dining, and head contractors, landlords and event organisers write a minimum limit into their contracts. Service NSW notes that business owners are legally responsible for damage or injury to another person or their property.
The ABS counted 942,658 actively trading businesses in New South Wales at 30 June 2026, up 2.8% in a year, and about two thirds of Australian businesses have no employees. Most of the requests for a certificate of currency described below come from that base of small operators.
business.gov.au also notes that some states and territories require public liability for certain occupations, so check your licence conditions as well as anything you’ve signed.
Where NSW businesses are asked for it
| Situation | What to check |
|---|---|
| Footpath or outdoor dining | The council approval sets the limit. City of Sydney’s guidelines say operators typically need a minimum of $10 million, or $20 million on state managed roads. Other councils set their own. |
| Subcontracting on a building site | The head contractor’s minimum limit, and a copy of your certificate of currency before you start. |
| Residential building work over $20,000 | That needs home building compensation cover from icare HBCF before you start work or take a deposit. It’s separate from public liability. |
| Markets, events and public spaces | The organiser’s or council’s minimum limit, and whether they need to be noted on your policy. |
| Leasing a shop or office | The insurance clause in the lease, which usually sets a minimum limit. |
| Hiring your first worker | Workers compensation through icare. You need a policy if you pay more than $7,500 in wages a year, take on an apprentice or trainee, or are part of a group of businesses. |
What public liability costs in NSW
The premium depends on what you do, your turnover and staff, your claims history and the limit you choose. On top of it come GST and NSW insurance duty of 9%.
The NSW small business exemption. Revenue NSW exempts public and product liability insurance from duty for a small business entity with aggregated turnover under $2 million. You declare it to your insurer, and the duty comes off. It’s one of the few ways to take a fixed cost out of the price, so make sure the insurer has your declaration.
Our public liability cost guide compares stamp duty in every state.
What it covers
Usually covered
- Injury to customers and the public. A diner trips over a planter in your outdoor dining area.
- Damage to other people’s property. You damage a client’s floor or a neighbour’s fence on a job.
- Legal costs of defending a covered claim.
- Products you sell, when products liability is included.
Usually not covered
- Your workers’ injuries. That’s workers compensation through icare.
- Defective home building work. That’s home building compensation cover.
- Your own tools and property. These need their own cover.
- Advice or design mistakes. That’s professional indemnity.
The full list is on our public liability insurance page.
Three NSW covers that get mixed up with public liability
Each is a separate policy with its own rules. Public liability doesn’t replace any of them.
- Workers compensation (icare).Covers your employees. Public liability excludes them. Workers compensation
- Home building compensation (icare HBCF).Protects homeowners on residential jobs over $20,000 if a builder can’t finish or fix defects. Licensed contractors must hold it before starting work.
- Professional indemnity.Covers claims that your advice or design caused a client a financial loss. Professional indemnity
How to compare public liability in NSW
Public liability in NSW: questions
Is public liability insurance compulsory in NSW?
Not for every business. It’s commonly required by council approvals, leases, building contracts and event organisers, and some occupations require it. Check your licence conditions and anything you’ve signed.
Do I pay stamp duty on public liability in NSW?
NSW insurance duty is 9%, but public and product liability is exempt for a small business entity with aggregated turnover under $2 million that declares it to the insurer.
How much public liability do I need for outdoor dining in Sydney?
Whatever your approval states. City of Sydney’s guidelines say operators typically need at least $10 million, or $20 million on state managed roads. Other councils set their own minimums.
Is home building compensation the same as public liability?
No. Home building compensation protects homeowners if a contractor can’t complete residential work or fix defects. Licensed contractors need it for residential work over $20,000. Public liability covers injury and property damage claims.
When do I need workers compensation in NSW?
icare says you need a policy if you pay more than $7,500 in wages a year, take on an apprentice or trainee, or are part of a group of businesses. Public liability doesn’t cover your workers.
Keep reading
More by state
Sources
- Service NSW: Get liability insurance for your business
- business.gov.au: Types of business insurance
- City of Sydney: Outdoor dining policy and guidelines
- Revenue NSW: Types of insurance (duty rates)
- Revenue NSW: Small business exemption
- icare: Do I need workers compensation insurance?
- Service NSW: Home Building Compensation Fund (HBCF)
- ABS: Counts of Australian Businesses, including Entries and Exits, July 2022 to June 2026
New South Wales