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How much does public liability insurance cost?

The fastest, most accurate way to find out the cost of public liability insurance for your business is to get a quote. In general, the cost can vary quite a bit, depending on factors such as:

  • The type of business
  • The level of public liability coverage
  • What's included and excluded from a particular policy.

The type of business

Generally, the operations of the business will affect the risks your business is likely to be exposed to and liable for, and how likely they are to happen. This affects the cost of liability insurance for each business.

For example a café may have hundreds of people through each day such as customers and suppliers. Each of these people could be scalded by hot liquids, slip on a wet floor, or suffer from food poisoning. These scenarios might sound unlikely but they are actually 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 relatively small claim can have a serious impact on a business’s cash flow and profitability. Some businesses are simply more likely to make these types of claims on their public liability insurance policy. This means their public liability insurance may cost more, as they are more likely to make a claim.

Meanwhile, an office cleaner that cleans only at night may be less likely to make a liability claim than a café. When they do claim it is likely to be for a smaller amount, perhaps for property damage (e.g. a broken computer). In general, property damage claims are not as expensive as personal injury claims. Therefore, their public liability insurance may cost less than that of a café.

Other business factors that can also impact the cost of public liability insurance include the activities performed by the business, e.g. working at height, the size of the business, offsite work and any previous claims.

The level of public liability cover

You might need a certain level of public liability insurance cover to satisfy the requirements of a contract. For example, tradespeople often need to have a certain level of insurance cover to get 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 four different levels of public liability cover: $5 million, $10 million, $15 million or $20 million.

Choosing a lower level of liability cover may make your public liability insurance cheaper, but it could also expose your business to debilitating costs if someone is seriously injured and their claim exceeds your level of cover.

Inclusions and exclusions

The best way to understand what is included and excluded is to read the PDS (find AAMI’s here) and speak to your insurer. 

Find out why more than 60,000 businesses trust AAMI with their business insurance – get a quote online in just 3 minutes, or call 13 22 44 to speak to a business specialist (8.30am – 6pm AEST/AEDT, Mon-Fri).

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Public Liability

Public Liability is one of the most important covers you can get. It provides cover if your business is found to be legally responsible for personal injury to a third party or damage to their property. 

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