How Much Public Liability Cover Does a Small Business Need?
The amount of public liability cover a small business needs depends on its work, contracts and potential claims. Review the limit alongside exclusions, excesses and insured activities. Our public liability insurance service explains how ABS can help assess those details.
Public liability cover: what the policy is designed to address
Public liability insurance may respond to certain claims alleging third-party personal injury or property damage arising from business activities, subject to the policy wording. It is different from cover for damage to your own tools, vehicles, stock or unfinished work.
Factors that can affect the limit you need
- Contractual requirements set by clients, principals or landlords
- The size and nature of the projects or sites where you work
- Public access to your premises or work area
- Whether your work can cause significant property damage
- Your industry, turnover, staff and subcontractor arrangements
Why tradies should avoid a one-size-fits-all approach
A mobile tradesperson, a builder managing multiple subcontractors and a consultant visiting client sites can all have very different liability exposures. A contract may state a minimum limit, but that requirement should be considered together with the practical risk of the work. ABS’s tradies insurance information is a useful starting point for trades businesses.
Look beyond the headline limit
The policy wording, exclusions, excess, territorial scope, activities declared and contract terms can be as important as the dollar limit. Be clear about the services you provide, use of subcontractors, high-risk activities and any special client requirements.
Discuss your circumstances
ABS Insurance Brokers can explain how public liability may fit into a wider general insurance program. For local assistance, contact an insurance broker in Sydney before accepting a contract or renewing an existing policy.
This article provides general information only and does not take account of your objectives, financial situation or needs. Insurance availability, terms, conditions, exclusions and premiums depend on the insurer and your circumstances. Consider the relevant policy wording and seek personal advice before making a decision.
