Cover if your work injures someone or damages their property. Usually the first thing a client, builder or site asks to see.
The short answer
Public liability insurance covers your legal liability if your business activities injure someone or damage property that isn't yours. For Australian trades and contractors it is usually the first policy a client, builder or site asks about, with limits of $5 million, $10 million or $20 million being the most common.
Every policy is different, so the wording always decides. These are the typical inclusions and exclusions.
Almost every trade and contractor business carries public liability. Builders, head contractors, councils, property managers, schools, hospitals and commercial sites routinely ask for a certificate of currency before you can start, and many will not pay or let you on site without one. It matters most for anyone working in other people's homes, on shared construction sites or around the public.
Residential clients often ask for $5 million. Builders and head contractors commonly ask for $10 million to $20 million, and larger commercial, government, mining and infrastructure sites can ask for $20 million or more. Some contracts also ask for the principal to be noted on your policy as an interested party, or for specific wording. The contract or site induction pack usually spells out exactly what is required.
When it gets harder
Head contracts can ask for higher limits, the principal noted on the policy, cross liability or a waiver of subrogation. A standard online policy may not include those, so it is worth reading the insurance clause before you sign rather than after.
Public liability is priced and accepted based on the activities you declare. If you move into work at heights, hot work, underground services, solar, mining or demolition, the insurer may need to know, and some will not cover it at all.
If you engage subcontractors, insurers usually expect them to hold their own public liability. If they don't, a claim caused by their work can end up on your policy, and some insurers will charge more or decline.
A registered excavator, crane truck or tipper can fall into a gap between the motor policy and the public liability policy when it is being used as a tool rather than driven on the road. This is a common thing to check if you operate plant.
Cost
| Factor | Why it matters |
|---|---|
| Your trade and the activities you declare | Higher-risk work such as roofing, demolition, hot work or work at height costs more than finish trades. |
| The limit you choose | Moving from $5 million to $10 million or $20 million increases the premium, though usually not proportionally. |
| Turnover and wages | Bigger businesses with more people on more jobs have more exposure to claims. |
| Subcontractor spend | Insurers often ask how much you pay subcontractors and whether they hold their own cover. |
| Claims history | Previous claims, especially recent ones, can increase premiums or narrow the insurers willing to cover you. |
| Excess | A higher excess usually means a lower premium, but more out of pocket if you claim. |
Common questions
There is no single national law that makes public liability compulsory for every business. In practice, many trades are required to hold it by their clients, builders, sites, councils or licensing arrangements, and some state licensing rules reference it. It is worth checking the requirements of your licensing body and any contract you sign.
The most common limits are $5 million, $10 million and $20 million. Residential work often asks for $5 million, while builders, head contractors and commercial sites commonly ask for $10 million to $20 million. The right limit is usually set by the contracts and sites you work on.
A certificate of currency is a short document from the insurer or broker confirming your policy is active, the limit, the period of cover and sometimes the activities covered. Clients and sites ask for it as proof of insurance before you start work.
No. Public liability covers injury to other people and damage to their property. Your own injuries are usually covered by personal accident and illness insurance, and your employees' injuries by workers compensation.
Generally it covers the damage your work causes to other people's property, not the cost of redoing the work itself. For example, a leaking joint that floods a ceiling may be covered for the ceiling but not for replacing the joint. The exact position depends on the policy wording.
How public liability insurance applies to specific kinds of work.
This page is general information only. It does not take into account your objectives, financial situation or needs, and it is not a recommendation to buy any insurance product. Always read the policy wording and, where applicable, the Product Disclosure Statement.
Request a quote
Tell us your trade or industry. It only takes a moment to get started.
Request a quote
Submitting this form does not arrange insurance. We'll use your details to help progress your enquiry.
