When someone gets hurt or something gets damaged... you're covered
Whether it's a client tripping over a cable in your office or damage caused during your work, Public Liability protects you from the claims that could sink your business.
What could go wrong
Most business owners think "nothing bad will happen to me." Then reality hits. Here's what Public Liability actually protects you from
The office visitor incident
You're running a 4-person design agency. A client visits your office for a presentation, trips over a laptop charger cable, and breaks their wrist. They're off work for 6 weeks and claim $45,000* for lost income and medical costs. Without cover, that's coming out of your business bank account... or worse, your personal assets.
The damaged property
The delivery gone wrong
A supplier drops off stock at your premises. Reversing out, their driver doesn't see a display stand you've left near the loading area and knocks it into their own leg, injuring themselves before they've even left your property.
The contractor requirement
You've just landed your first big client. They're ready to sign, but their contract requires $10 million* Public Liability cover before you can start work. Without it, you can't take the job. With it, you send them a Certificate of Currency and start on Monday.
What this actually covers
Public Liability
Public Liability protects you if:
- Someone is injured at your premises or while you're working at theirs
- You damage someone else's property (client's laptop, venue equipment, supplier's stock)
- Someone sues you for compensation due to injury or property damage caused by your business activities
What's typically covered:
- Legal defence costs (often more expensive than the claim itself)
- Compensation payments to injured parties
- Medical expenses for injured third parties
- Property damage you're liable for
- Court costs and settlements
- Your legal representation
If you also make or sell a product
Selling something, even online, adds a related but separate layer of cover called Products Liability. It's usually bundled into the same policy, but it answers a different kind of claim.
Products Liability
You sell handmade candles online. A customer's candle tips over, starts a small fire, and damages their dining table and part of their wall. They're seeking compensation, plus their home insurance excess.
Products Liability protects you if:
- A product you make, sell, or supply causes injury to someone
- A product you sold causes property damage
- Someone claims your product was defective and caused them loss
When you need this
Pre-launch to first year
You need this from Day 1 if:
- You're meeting clients face-to-face (their office or yours)
- You're working from a co-working space or rented premises
- You're selling physical products—even if it's just online
- Your lease requires proof of insurance
- You're hiring contractors or freelancers who work on-site
Growing and hiring
Your cover needs to increase when:
- You're taking on larger clients with higher contract requirements ($20M+ cover)
- Your revenue exceeds $1M (higher revenue = higher risk exposure)
- You're selling products to retailers (they'll require higher limits)
- You're exhibiting at events or running workshops
- You're importing or manufacturing products
Established and optimising
Review your cover if:
- You've changed what you sell or how you deliver services
- You've moved into new industries or markets
- You're exporting products internationally
- You've had a near-miss incident that wasn't quite claim-worthy
- Your premiums have jumped significantly at renewal (shop around)
Common questions
What's the actual difference between Public Liability and Products Liability?
Public Liability answers a claim about injury or property damage that happens because of your business activities, on your premises or someone else's. Products Liability answers a claim about something you made, sold, or supplied causing that harm after it's left your hands. Most small business policies bundle both together.
Do I need this if I'm just working from home and never see clients?
If you never have anyone visit, never go to client sites, and don't sell physical products, you might be able to skip it initially. But the moment you meet a client, attend a co-working space, or have a supplier visit, you need it. Most business owners need it from the very beginning.
What's the difference between $10M and $20M cover?
The maximum amount the insurer will pay out. $10M covers most small business scenarios. You'd only need $20M+ if large clients contractually require it, or you're in a high-risk industry where major incidents are possible (events, construction, manufacturing).
My client is asking for a Certificate of Currency, what's that?
It's a one-page document from your insurer proving you have active insurance. It shows your coverage type, limits, and expiry date. Your broker (that's us) can provide this within hours. Clients request it before signing contracts to ensure you're properly covered.
Does this cover me if I'm working overseas or selling internationally?
Most Australian policies cover you for work done in Australia. If you're working overseas or exporting products, inform your broker that you may need geographical extensions or international coverage added to your policy.
Can I just add this later once I'm making money?
No. If something happens before you get insurance, you're not covered for that incident—even if you buy insurance the next day. You need coverage from the moment you start trading, testing, or interacting with clients.
What happens if someone sues me and it's more than my cover limit?
Anything above your policy limit comes out of your pocket (or your personal assets). That's why getting adequate cover matters. Don't just buy the minimum; think about realistic worst-case scenarios for your industry.