4.0 / 5
Public liability is the foundation policy for any business that interacts with the public — including sole traders. Online brokers like BizCover make comparing multiple insurers fast, with instant certificates of currency.
✓ What we like
- Covers legal defence, settlements and awards for third-party injury or property damage
- Online comparison makes quotes fast — often under 10 minutes
- Australian-based support and 24/7 claims with major brokers
✗ What could be better
- Doesn't cover intentional damage, contractual liabilities or employee injuries
- Easy to under-insure by choosing the minimum level of cover
For small business owners, liability insurance is the safety net that keeps an accident from becoming a company-ending event. Here’s how the key policies fit together and how to compare quotes.
What public liability insurance covers
Public liability protects you against claims of third-party personal injury or property damage arising from your business activities — including legal defence costs, settlements and awards. If customers, suppliers or members of the public interact with your business, it’s the foundation policy.
Common exclusions: intentional damage, contractual liabilities, professional advice (that’s professional indemnity), and injuries to your own employees (that’s workers’ compensation).
The policies most small businesses should consider
| Policy | What it protects against | Who needs it |
|---|---|---|
| Public liability | Third-party injury / property damage | Anyone dealing with the public |
| Professional indemnity | Claims from bad advice or service errors | Consultants, advisers, designers |
| Workers’ compensation | Employee injury or illness | Legally required if you employ staff |
| Commercial property | Damage to premises, tools, stock | Businesses with physical assets |
| Cyber liability | Data breaches and cyber attacks | Anyone holding customer data |
| Management liability | Claims against directors / managers | Companies with governance exposure |
Business interruption cover is the most overlooked add-on — it replaces lost income while you recover from an insured event.
Do sole traders need public liability insurance?
Yes — working directly with customers or in public spaces creates exactly the risk this policy covers, and many clients and venues require a certificate of currency before you can start work.
How to compare and buy
- Assess your risks: where you work, who you interact with, what you could damage.
- Choose a cover level — $5m, $10m and $20m are standard tiers; many commercial contracts mandate $10m+.
- Compare quotes from multiple insurers. Online brokers such as BizCover return several quotes in minutes.
- Read the PDS for exclusions and excess amounts before binding.
- Download your certificate of currency — you’ll need it for clients, landlords and councils.
Frequently asked questions
What’s the difference between public and product liability? Public liability covers your business activities; product liability covers products you sell or supply. They’re usually bundled.
What does it cost? Premiums depend on your industry, turnover and cover level — low-risk sole traders often pay a few hundred dollars a year; trades and hospitality pay more.