As a growing number of people turn to the courts to seek damages from companies when they think they’ve suffered a loss, it’s become even more important for companies to protect themselves.
Thankfully here in Australia there’s a really competitive market in regards to public liability insurance, and it follows that the premiums are extremely affordable for many business types.
In this guide we will take a closer look at public liability cover for Australian companies.
There are two main dangers that Australian business can protect themselves against public liability:
- The risk of causing harm to another person’s property
- The risk of causing harm or death to another person
These are both very serious dangers, and the Australian legal system does permit those who have suffered such losses to sue the companies accountable through the courts.
There’s some confusion out there if not public liability insurance is compulsory for company in Australia.
The brief answer is no, however there are some business types that will have their own set of principles.
Many trades have compulsory public liability requirements, especially the ones that must operate under a state authorities issued permit like an electric or plumbing contractor. For small business owners, we recommend comparing business insurance with iSelect & BizCover.
Some companies may also have mandatory requirements set by their industry association or their landlord for example.
Generally these requirements are put in individual contracts rather than being required by any specific law.
Differences Between States
There are a few minor exceptions however, such as Qld electricians who need a particular kind of public liability insurance including consumer protection cover.
Plumbers in Victoria have unique public liability requirements, as their policies should include a particular extension for plumbers guarantee cover.