How much does public liability insurance cost?


The cost of Public Liability Insurance can depend on factors like:

  • the type of business you run
  • the level of public liability coverage you need, and
  • what's included and excluded by a particular policy.

These can differ quite a lot from business to business, so the best way to find out the cost of Public Liability Insurance is to get a quote for your specific business.

The cost of Public Liability Insurance can depend on the type of business you run

What your business does and how it operates will usually determine public liability risks, and how likely they are to result in injury or damage. For example, a café may have hundreds of people coming through its doors. Patrons are at risk of being scalded by hot liquids, slipping on a wet floor, or getting food poisoning.

These scenarios might sound unlikely, but they’re some of the most common liability claims made by AAMI Business customers. These are known as personal injury claims and they can be incredibly expensive for a small business, particularly if someone is seriously injured.

Personal injury liability claims can range from a few thousand dollars to several million dollars, so even a small claim can have a serious impact on a business’s cash flow and profitability. Some businesses are more likely to make public liability claims, like busy cafes, which can drive up the cost of their Public Liability Insurance.

Meanwhile, an office cleaner working only at night may be less likely to make a liability claim than a café. And if they do claim, it’s likely to be for a smaller amount – a broken computer, for instance. In general, property damage claims are not as expensive as personal injury claims.  

Other business factors impacting the cost of Public Liability Insurance include the activities performed by the business, such as working at height, the size of the business, offsite work, and any previous claims.

Different levels of cover can change what you pay

Choosing a level of Public Liability Insurance depends on the needs of your business. You might need a certain level of Public Liability Insurance cover to satisfy the requirements of a contract. For example, a tradesperson might need a certain level of insurance cover to gain access to a worksite as a contractor.

Retailers may be required to purchase a certain level of cover according to the lease they have with the shopping centre or their landlord. With AAMI, you can choose from three different levels of public liability cover:

  • $5 million
  • $10 million
  • $20 million.

Choosing a lower level of liability cover may make your Public Liability Insurance cheaper, but you’ll have to consider whether a potential injury claim might exceed your level of cover. If it does, you could be seriously out of pocket, which is why it can be so beneficial to plan ahead.

Explore Public Liability Insurance

Inclusions and exclusions

The best way to understand what is included and excluded for legal liability insurance cover is to read the Product Disclosure Statement and speak to your insurer. Find out if your insurance is tax deductible too.

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Find out why more than 70,000 businesses trust AAMI with their business insurance. Get a quote online or call 13 22 44 to speak to a business specialist.

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Insurance is issued by AAI Limited ABN 48 005 297 807 AFSL 230859 (AAI) trading as AAMI. Read the relevant Product Disclosure Statement before buying this insurance.
This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it.