Public Liability Insurance Cost

Public liability insurance cost
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The cost of public liability insurance can vary from a few hundred dollars through to a few hundred thousand. How much you pay will depend on a number of factors.

In this guide we will take a look at some of those factors which affect the cost of your insurance.

Factors Affecting Public Liability Cost

There are two main factors which will affect your public liability insurance cost, along with a number of secondary factors which will also be considered by the insurance provider.

Two of the main factors affecting the cost of your insurance will be the type of business you run along with the size of your business.

These factors will help to establish your base premium, however there are some other factors which can still come into play. This includes any ‘out of the ordinary’ business activities that you may undertake.

Business Type

The type of business activities which you undertake will often have the largest impact on the cost of your public liability insurance.

The insurance companies have large amounts of information, research and claims history on each different occupation and business type. This allows them to understand how much risk different business types pose.

A business type with a lower risk, such as a consultant working from home, will have a much lower premium than a tradesman working on job sites, and in turn they will have a lower premium than a manufacturing business.

Business Size

The size of a business will also have an impact on the cost of your public liability insurance, as a company with more staff or higher revenue is generally considered to have a high chance of making a claim.

Some insurance companies measure the size of a business by staff numbers, some measure by annual turnover and some measure by a combination of the two.

Other Factors

Whilst the above two factors will be the most important for most standard business types, there are some businesses that will have their public liability insurance cost impacted upon by other areas.

For example any business working in locations considered to be high risk, such as airports, railway stations or mine sites, will find that their cost is considerably higher than for businesses not working in these locations.

If your business does undertake work in locations considered high risk, or undertakes activities which are outside of the norm, you will not only find that your cost is higher but also that many of the mainstream insurance companies will not be able to offer you cover.

The good news here is that there are specialist insurance companies out there who can offer cover to such businesses. We have access to many of these insurers through our broker network, so please get in contact with us if you need assistance in this area.

Business Risk

As with all forms of insurance, public liability is ultimately priced based on the perceived risk of your business.

If your business is regarded as a lower risk you will be charged lower premiums, and if your business is regarded as a higher risk you will be charged higher premiums.

How Much Does Public Liability Cost?

The cost of public liability insurance can vary hugely depending on the business that you run. The best way to find out this cost is to require a quote.

Here at we can arrange quotes through our network of insurance brokers and advisers.

They can assist you with calculating your public liability insurance cost along with recommending a suitable policy for your needs.

For more information or to find out the cost of your cover please complete our online quote request or contact our office.

Public liability insurance calculator

Wondering how to calculate the level of liability you require? In most cases you may have a contractual obligation to have certain limit as a minimum, but for most sole traders $5 million is more than enough. But think about what you are working on, is a building that would cost $7 million to rebuild if you accidentally burnt it to the ground, then maybe you should be looking at $10 million. Always think worst case scenario.

Frequently Asked Questions

In some respects public liability insurance is very straightforward, but once you scratch the surface it can actually be a very complex area with many potential complications.

As part of our quest to make this important form of insurance easier for Australian small business owners and operators to understand we are in the process of putting together a list of the most commonly asked questions.

Please keep in mind that this FAQ contains very generalised answers and should in no way be seen or used as a substitute for proper advice from a qualified insurance broker or adviser.

If you would like to add a question to the list please contact us.

Public liability insurance covers a range of risks, with the major ones being property damage and personal injuries caused to other people as a result of your business activities.

You can read more by visiting our ‘what is public liability insurance‘ page.