Small business owners in Australia face a range of risks, including the possibility of third parties suffering accidents or injuries on their premises. Public liability insurance is an essential type of coverage that protects businesses from some of the financial impact of such claims. If a third party is injured in your business premises or if you have visited a client’s property and accidentally cause damage while you're working, public liability insurance aims to make sure that your business doesn't bear the full cost of legal fees, medical bills, and compensation payouts. It’s a necessary investment for small business owners to safeguard their business and assets.

What type of business insurance is catered to SMEs?

There are several insurance policies that can cover a range of business risks, depending on the nature and scope of your business. Apart from public liability insurance, small business owners should also consider the following types of coverage:

• Professional Indemnity Insurance: Protects against claims for financial loss arising from harm caused by the professional advice and/or services you offer to clients.
• Workers’ Compensation Insurance: A statutory requirement if you employ people, covering workplace accidents and injuries.
• Property Insurance: Covers physical assets like buildings and contents, inventory, plant and equipment.
• Business Interruption Insurance: Covers loss of revenue and operating expenses when an insured event, such as a fire, causes damage to the insured premises and prevents the business from carrying out its normal day-to-day operations. For example, the business interruption section of the Business Pack policy would seek to respond to the financial loss if a retail store suffers a fire and cannot operate from its usual premises, the business would be unable to trade until repairs are made or a new location is found.
• Cyber liability insurance: Protects businesses against losses from cyber incidents such as data breaches, hacking, ransomware attacks, and accidental data leaks. It typically covers costs like legal fees, data recovery, customer notification, business interruption, and regulatory fines.

Every business owner needs cyber liability insurance because even a minor cyberattack can cause significant financial and reputational damage—especially for businesses that handle customer data, process online payments, or rely on digital systems, including a POS, to operate.

Each business is unique, so we recommend that you speak to Gow-Gates Insurance Brokers to assess your specific risks to ensure you have the appropriate cover.

How Much Is Public Liability Insurance?

The cost of small business public liability insurance can vary based on the industry, size of the business, and level of coverage. Because premiums can differ significantly, particularly for businesses in higher-risk industries like construction or hospitality, it's important to get tailored quotes. To ensure you're getting the best option for your needs, compare coverage levels and pricing from multiple insurers.

How Do I Insure Myself as a Sole Trader?

If you’re a sole trader, public liability insurance is just as important as it is for larger businesses. As a sole trader, you are personally responsible for your business, meaning any legal claim against your business could affect your personal finances. Public liability insurance protects you from third-party injury or property damage claims, ensuring you’re not left financially vulnerable.

You should also consider property insurance to protect physical assets—like tools, equipment, or premises—from damage or loss. Without this cover, replacing essential items could be financially devastating.

Depending on how your business operates, you may also want to consider Business Interruption (BI) insurance. If your income depends on operating from a physical premises—such as a retail store, workshop, or consulting office—BI insurance can help cover lost income and ongoing expenses if your business is forced to temporarily close due to an insured event (e.g., fire, storm, or vandalism). It can typically cover loss of gross profits or revenue, additional increased costs of working, and fixed ongoing costs during downtime.

For sole traders who work on the go or from home, portable contents insurance may be more relevant—covering laptops, mobile phones, or tools of trade that could be lost or damaged while visiting clients.

Every sole trader’s needs are different, so speak to us at Gow-Gates Insurance Brokers to get tailored coverage based on your business risks and operating style.

Disclaimer:

The response of an insurance policy to a claim can vary depending on each particular circumstance and the terms and conditions of the policy. The information provided in this blog post is for general informational purposes only and does not constitute legal, financial, or insurance advice. While we aim to keep the content accurate and up to date, insurance needs vary widely depending on individual business activities, industry, and risk profile. Before making any decisions regarding insurance coverage, readers should consult with a qualified insurance broker or advisor to ensure that the policy they choose is appropriate and sufficient for their specific business circumstances. We accept no responsibility for any loss or damages resulting from reliance on the information in this post.