Public liability insurance is one of the most important types of insurance for Australian businesses. It provides protection against claims made by third parties for injury or property damage caused by your business activities or other incidents where your business is found legally liable. Third party claims can be brought by customers, clients, suppliers, or members of the public.

If someone trips and falls in your store or if your business accidentally causes damage to a customer’s property, public liability insurance helps cover the cost of loss or damage caused by your act or omission. Without this protection, your business could be liable for thousands—if not hundreds of thousands—of dollars in damages.

For businesses that interact with people in physical spaces, such as cafés, salons, trades, or event services, this insurance is often considered essential.

A standard public liability insurance policy typically covers your legal liability and responds to third party claims for:

• Personal injury – Covers claims if a third party (such as a customer, supplier, or member of the public) is injured due to your business activities. For example, a customer slipping on a wet floor at your premises.
• Property damage – If your business activities accidentally damage someone else’s property, such as a tradesperson damaging a client's flooring during a job.
• Legal expenses – Includes the cost of defending yourself in court or negotiating settlements.

However, there are a few things public liability insurance generally doesn’t cover:

• Injuries to your employees (covered by workers’ compensation)
• Damage to your own property
• Professional negligence (covered by professional indemnity insurance)
• Faulty or poor workmanship

Having the right mix of insurance policies is important for complete protection. Speak to our team if you’re unsure what you need.

How Much is Public Liability Cover in Australia?

The cost of public liability insurance can vary based on a range of factors, including your industry, business size, annual turnover and your claims history for the preceding 5 years. Premiums tend to differ significantly across industries and providers—especially for higher-risk sectors such as construction or hospitality, where the chance of a claim is greater. Your level of public interaction and business operations also play a role in determining pricing.

To get an insurance policy tailored to your situation, it’s best to consult with an insurance broker, who will help you find the right public liability cover for your business, explain the details clearly, and supports you if you need to make a claim. Reach out to us Gow-Gates—we’ll connect you with the right insurer who can offer competitive, tailored coverage for your business needs.

What are Examples of Public Liability Claims?

Here are some real-world examples of public liability claims:

Example 1: Retail Slip and Fall

An employee at a clothing store mops the floor but forgets to put up a wet floor sign and cordon-off the slippery area. A customer walks in, slips on the slick tiles, and injures their back. The business may be held responsible for medical bills and lost income—costs that public liability insurance is designed to cover.

Example 2: Damage During a Site Visit

While working in a client’s home, a tradie accidentally drops a heavy tool, cracking the marble benchtop. The furious homeowner demands costly repairs and takes legal action. In this case, the tradie’s public liability insurance is there to help cover the damage and respond to the claim.

Example 3: Food Stall Incident

A customer buys a hot drink from a food vendor at a farmer’s market, but due to a faulty water heater, it's served scalding hot. With no warning given, the customer suffers serious burns and needs medical treatment. They seek compensation for medical costs and lost income, prompting the vendor to notify their public liability insurer.

These types of claims can happen unexpectedly—and without insurance, they can severely impact your finances and reputation.

Why Choose Gow-Gates for Your Public Liability Cover?

At Gow-Gates Insurance Brokers, we help businesses across Australia secure comprehensive insurance solutions. With over 60 years of experience, we’re trusted by small and large businesses alike.

Here’s why clients choose Gow-Gates:

• We work with top-tier insurers
• We can tailor coverage to your business risk
• We provide personal, expert advice
• We support you through the claims process

Whether you're a sole trader, growing a business or managing a well-established brand, we’ll help you find the right protection—without the confusion. With expert advice, access to top insurers, and support at claim time, Gow-Gates makes protecting your business simple and stress-free.

Get in touch with Gow-Gates Insurance Brokers for tailored public liability insurance that fits your business needs.

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.