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Public Liability Insurance Queensland
If you run a business in Queensland, public liability insurance can help protect your business from the financial impact of claims for personal injury or property damage arising from your business activities.
For some Queensland businesses, public liability insurance is also a licensing or contractual requirement. For example, electrical contractors must meet specific insurance requirements to obtain and maintain their Queensland electrical contractor licence. Commercial landlords, principal contractors and industry associations may also require businesses to hold appropriate public liability cover.
Even where insurance isn’t compulsory, having adequate public liability insurance in Queensland can help protect your business assets and provide greater confidence when dealing with customers, suppliers and other businesses.
What is public liability insurance?
Public liability insurance provides cover for certain claims made against your business if your business activities cause personal injury or property damage to another person or their property.
For example, a customer could be injured at your premises, or your business could accidentally damage property belonging to a client.
If your business is found legally liable, you may be responsible for costs such as:
- Compensation for personal injury
- Repair or replacement of damaged property
- Medical expenses
- Legal defence costs
- Other reasonable expenses associated with defending a covered claim
Depending on the circumstances and the terms of your policy, your insurer may cover these costs up to the applicable policy limit.
Without adequate insurance, these expenses could have to be paid from your business revenue or assets.
Public liability insurance requirements in Queensland
Public liability insurance requirements vary depending on your industry, occupation and the work your business performs.
Some Queensland businesses must hold specific insurance as part of their licensing requirements. Other businesses may need public liability insurance because it is required by a landlord, customer, principal contractor, industry association or contract.
It’s important to understand the requirements that apply specifically to your business rather than assuming that a standard public liability policy will automatically meet every regulatory or contractual obligation.
Electrical contractors in Queensland
Queensland electrical contractors are subject to specific insurance requirements as part of the electrical contractor licensing regime.
Under section 51 of the Electrical Safety Regulation 2013, Queensland electrical contractors are required to hold current broadform public and products liability insurance of at least $5 million, as well as Consumer Protection Liability insurance of at least $50,000, subject to the applicable requirements.
The required cover can include protection for liability arising from matters such as:
- Testing and certification of electrical work
- Faulty design work
- Incorrect advice
- Certain goods in your care, custody or control
The requirements can be particularly important for businesses undertaking domestic electrical work, as consumer protection insurance forms part of the Queensland licensing requirements.
If you’re an electrical contractor in Queensland, it’s important to make sure your insurance policy meets the requirements applicable to your licence before applying for or renewing your licence.
Other Queensland businesses
Public liability insurance isn’t compulsory for every business in Queensland. However, many businesses choose to have cover because of the financial risks associated with claims for injury or property damage.
Your industry association, customers, landlord or principal contractor may also specify the type and level of insurance you need.
The appropriate level of cover depends on your individual circumstances, including the type of work you perform, where you work and the risks associated with your business activities.
How much does public liability insurance cost in Queensland?
There is no standard price for public liability insurance in Queensland. Your premium will depend on a range of factors relating to your business and the level of cover required.
Some of the key factors insurers consider include:
- Your occupation or trade – An electrician, plumber, builder and professional services consultant may have very different risk profiles.
- The size of your business – Revenue, employee numbers and the scale of your operations can affect your premium.
- Subcontractor use – The number and proportion of subcontractors you use may affect the insurer’s assessment of your risk.
- Your level of cover – Common public liability limits include $5 million, $10 million and $20 million, although the appropriate limit depends on your circumstances.
- Your work locations – Working at construction sites, mines, airports or major infrastructure projects may present higher risks.
- Your business activities – The specific services and activities undertaken by your business need to be accurately disclosed to your insurer.
Queensland insurance premiums can also include applicable government charges and taxes, which can affect the total cost of your policy.
What affects public liability insurance premiums?
The type of work you perform is one of the most important factors affecting your insurance premium.
Businesses undertaking higher-risk activities may generally attract higher premiums because there is a greater potential for personal injury or property damage claims.
The size and turnover of your business can also affect the cost of cover. A larger business may have greater exposure to potential claims than a smaller operation.
If you use subcontractors, this may also affect your premium. The extent to which subcontractors are used and the nature of their work can influence how an insurer assesses your business risk.
Your work locations are another important consideration. For example, businesses working at mine sites, airports, construction sites or major infrastructure projects may face different risks from businesses operating from a standard office.
Make sure your business activities are accurately described
One of the most important considerations when arranging public liability insurance is making sure your insurer has an accurate understanding of what your business does.
Your policy will generally provide cover in accordance with the terms, conditions and exclusions of the policy and the business activities disclosed to the insurer.
Simply describing your business as an “electrician” or “electrical contractor”, for example, may not adequately explain every service your business provides.
You may also undertake activities involving:
- HVAC
- Data and telecommunications
- Solar design and installation
- Home automation
- Electrical design
- Testing and certification
- Equipment installation or repair
These activities should be discussed with your insurer or broker to determine whether they need to be specifically included in your business description or otherwise addressed by your policy.
It’s important not to underestimate or omit activities simply to reduce your premium. Failing to provide accurate information can create problems if you later need to make a claim.
Providing your insurer with a complete and accurate description of your business activities can help ensure you understand what your policy covers.
What does public liability insurance cover?
For Australian businesses, public liability insurance is designed to provide protection against certain claims arising from personal injury or property damage caused by the business.
Depending on the policy, cover may include:
Personal injury
If someone is injured as a result of your business activities, you could potentially face a claim for compensation and associated expenses.
For example, a customer could slip and fall at your business premises or someone could be injured while you are carrying out work at their property.
Property damage
Your business could accidentally damage property belonging to a customer or another third party.
For example, a tradesperson could accidentally damage a customer’s property while completing work.
Legal defence costs
A public liability policy may also provide cover for certain legal and defence costs associated with a covered claim, subject to the policy terms and conditions.
Legal expenses can become significant when a liability claim is disputed or requires lengthy legal proceedings.
Public liability insurance can therefore provide an important layer of financial protection for businesses facing covered claims.
Do I need public liability insurance in Queensland?
Whether you need public liability insurance in Queensland depends on your industry, licensing requirements, contracts and business circumstances.
You may need public liability insurance if:
- Your industry or licence requires it
- A landlord requires it as a condition of your commercial lease
- A customer or principal contractor requires a specified level of cover
- Your industry association recommends or requires it
- You want to protect your business against the financial consequences of covered liability claims
For some businesses, insurance is a regulatory requirement. For others, it is a risk-management decision.
If you’re unsure whether your business needs public liability insurance, an insurance broker can help you identify the requirements that apply to your particular trade or industry.
Getting public liability insurance quotes in Queensland
The best way to determine the cost of public liability insurance for your Queensland business is to obtain a quote based on your specific circumstances.
Insurers and insurance brokers can provide quotes based on information such as:
- Your trade or occupation
- Annual turnover
- Number of employees
- Use of subcontractors
- Required level of cover
- Types of work you perform
- Locations where you work
- Any higher-risk activities your business undertakes
You can approach insurers directly, or use an insurance broker to obtain and compare quotes from multiple insurance providers.
Why use an insurance broker?
An insurance broker can help you identify suitable insurance options based on your business activities and risk profile.
Rather than contacting multiple insurers yourself, a broker may be able to approach several insurers on your behalf. They can also explain differences between policies, including limits, exclusions, excesses and the activities covered.
When comparing public liability insurance quotes in Queensland, don’t simply compare the premium.
Consider:
- The level of cover
- The policy excess
- Policy exclusions
- Covered business activities
- Geographic or work-location restrictions
- Contractual and licensing requirements
- Any additional insurance your business may require
The cheapest policy isn’t necessarily the most appropriate policy if it doesn’t provide the cover your business needs.
How to reduce the cost of public liability insurance
There are several factors you can discuss with your broker when looking for ways to manage your insurance costs.
Depending on your circumstances, options may include:
- Reviewing your level of cover
- Considering a higher excess
- Comparing quotes from multiple insurers
- Combining different business insurance policies where appropriate
- Reviewing your business activities and risk-management practices
Any changes to your policy should be considered carefully to ensure you don’t reduce your cover below the level required by your industry, customers, contracts or licensing requirements.
Get a public liability insurance quote for your Queensland business
Whether you’re an electrician, plumber, builder, contractor, professional services provider or another type of Queensland business, having the right insurance can help protect your business from potentially significant liability costs.
Our insurance brokers can help you understand your public liability insurance requirements in Queensland, compare suitable insurance options and find cover based on your business activities.
To discuss your options or obtain a public liability insurance quote in Queensland, speak with one of our brokers or complete our online quote request.