Things to consider before buying public liability insurance

Things to consider before buying public liability insurance

Liability insurance is likely to be one of the first purchases that your new business is likely to take out. Although it's not compulsory it is needed to protect your business against claims made by a third party for loss or damage caused by you or your staff.

Before you purchase public liability insurance, it's worth looking at a few things that you should take into consideration. Steve Sloan an insurance broker with Insure 247, explains what to look for before you make your purchase.

Level of Cover

First, you need to choose your limit of cover. The cover is generally offered at either 5,10 or 20 million dollars.
If you're covering a contract ask the vendor what limit they require, if you're dealing with state or federal government that's likely to be a 20 million dollar starting point.

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Liability Insurance - Insurers

When looking at the cover offered by insurers it's important to look at the insurer's financial strength, claims ratings and whether they are an Australian based insurer.

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Exclusions and variations

According to Sloan "Not all policies are the same, and some insurers may even offer different covers through different channels. It's important to check any exclusions under the policy especially if they would have an effect on you or your occupation. Insurers are obliged by law to advise you of any variations to this standard contract, that contract will be based on the product disclosure statement (pds for short)"

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Claims rating

An insurance policy proves it's value at the time of the claim, that's why prior to making a purchase you should look at the insurance claims rating. uses by LMI, they look at each insurers Speed, Proactiveness, Accuracy, and Fairness in the claim process.

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Any business must be aware of its cash flow requirements, according to Sloan "Some public liability insurers will offer policies that are very similar in features and cover, however still be wildly different prices", he urges consumers to "Don't let price be your guide, let value and cover decide your choice"

Buy the right policy for you

If you don't feel comfortable making those comparisons or have any questions pertaining to your risk you should discuss it with a broker.


Compare Public Liability Insurance


Public Liability Compared



At we quote broadform liability cover, this covers your business against claims for personal injury to another person (other than employees) or damage to property owned or controlled by someone else, or advertising liability. Property damage, personal injury or advertising liability which gives rise to legal liability must happen during the period of insurance and be caused by an occurrence in connection with your business activities, Broadform also cover product liability.

General Advice

Please note that any advice given has been provided without taking into account your objectives, financial situation or needs. It is also based on information we have obtained from you. You must ensure the information is accurate and complete. Otherwise, this advice may be based on the inaccurate or incomplete information. You should consider whether the advice is appropriate in light of your objectives, financial situation, and needs

Liability Insurance


Are all Public Liability Insurance policies the same?

Public Liability Insurance Compared

Are all Public Liability Insurance policies the same?

You know you need public liability insurance to protect your business against claims of third party loss or damage, and there are many Australian Insurers and underwriting agencies that offer cover but are they all the same?

We asked Steve Sloan an Insurance Broker with Insure 247

“No not  all policies offered in the Australian market are the same, some may only offer protection to the public for injury or damage as a result of your business activity, but not your injury or loss as a result of your product. To combine both you should look for Broadform Liability cover.”

“Check if you policy has any exclusions, endorsements, alterations that may take effect in the event of a claim.Some may exclude your importing, some may exclude your professional or legal services. They may have heat exclusions in the event of work done away for your premises.”

Does a higher excess save money?

Sometimes you may save a few hundred dollars in premium by increasing the excess payable at claim, however in the event of a claim the excess may end up higher than the value of the claim. It’s also worth checking the excess as some underwriting agencies have a minimum excess of $5000, likewise in the event of personal injury claims some insurers require no excess at all.

Will they all have the same level cover?

When you get your public liability quote, you will be asked what level of cover you require. Cover generally offered is either $5, 10 or $20 million, you should seek the advice of a broker before arranging the quote to see if the level of cover offered is enough to meet your needs.

What is Legal Liability

Before buying a policy Steve Sloan recommends using the check list below

Public Liability Check List

  • Is it Broadform Liability (Both Public and Product Liability?)

  • Are there any endorsements or alterations to the cover?

  • What are the policy exclusions?

  • What is the excess in the event of a claim?

  • Check the level of cover

Consumer Protection Insurance


Insurance Claims tips for small business owners