Why Every Small Business Needs Public Liability Insurance

Public liability insurance covers you when a third party — a customer, visitor, or member of the public — is injured or has their property damaged as a result of your business activities. Without it, you're personally exposed to potentially unlimited legal costs and damages.

Real-world scenarios it covers

• •A client trips over your equipment bag at their office — breaks their wrist — sues for $80,000 in lost income and medical costs
• •A tradesperson's tools scratch a client's hardwood floors — replacement cost $15,000
• •A customer slips on a wet floor in your retail store — hospitalisation + legal costs
• •A product you sell causes injury — products liability (usually included with PL cover) responds

What it costs

A $5M public liability policy for a single-operator service business typically costs $400–$800/year ($35–$65/month). For trades businesses or higher-risk occupations, premiums increase accordingly but remain affordable relative to the exposure.

When you might legally require it

• •Many councils and event venues require a $10–$20M certificate of currency before granting access
• •Government contracts almost universally require $10–$20M PL cover
• •Some industry bodies (builders, electricians, plumbers) require PL as a condition of licensing