Business liability insurance options compared
The main types of business liability and related cover in Australia, compared on how they work, who they suit and what to watch.
This table compares types of cover and ways of buying it, not insurers or prices, because premiums depend on your occupation, turnover, location, claims history and the insurer. Use it to decide what to ask for, then compare actual quotes like for like with the liability quote comparison tool. Select a column header to sort, or filter the table by keyword.
Select a column header to sort.
| Option | How it works | Good for | Watch out for |
|---|---|---|---|
| Public liability (often sold as broadform public and products liability) | Pays compensation and legal costs if your business activities injure someone or damage their property; usually written on an occurrence basis | Tradies, retailers, cafes, event operators and any business with customers, sites or premises | Exclusions for professional advice, faulty workmanship, property in your care and contractual liability; the excess often applies to property damage claims |
| Products liability | Covers injury or property damage caused by goods you make, sell, supply or import; usually limited in the aggregate for the policy period | Manufacturers, importers, online sellers and wholesalers | Importers can be treated as the manufacturer under the Australian Consumer Law; exports to the USA or Canada are often excluded or loaded |
| Professional indemnity | Covers claims that your advice, design or professional service caused financial loss; written on a claims-made basis | Consultants, accountants, IT contractors, engineers, architects and advisers | Retroactive date, notification of circumstances and run-off cover after you stop trading |
| Management liability | Packages directors' and officers' liability, employment practices, statutory liability and sometimes crime cover for private companies | Companies with employees, directors and outside investors | Penalties that cannot legally be insured, including WHS fines in jurisdictions that prohibit it |
| Cyber insurance | Covers response costs, business interruption and liability after a data breach or cyber attack | Businesses that hold customer data or rely on online systems | Minimum security conditions such as multi-factor authentication and backups; claims-made basis |
| Business pack | Bundles property, theft, glass, business interruption and public liability in one policy with one renewal | Shops, offices and small premises-based businesses | Liability limit and exclusions may be narrower than a standalone policy; NSW property sections carry the emergency services levy |
| Workers compensation | State or territory scheme cover for employees' work injuries; compulsory for employers | Any business with employees, including some contractors deemed to be workers | Premiums are set by the scheme, not by public liability insurers; public liability excludes injury to your own workers |
| Personal accident and illness | Pays a weekly benefit if a sole trader cannot work through injury or illness | Sole traders and partners not covered by workers compensation | Waiting periods, benefit periods and the cap on insured income |
| Annual policy versus single-event cover | Annual policies cover all business activities for 12 months; event cover applies to one market, festival or function | Event cover suits occasional stallholders and one-off functions | Several events a year can cost more than an annual policy; check the venue's required limit |
Product names and features vary between insurers, and the same name can mean different cover. Read the policy schedule and wording, which may be called a product disclosure statement for retail products or a policy wording for business products. To check that an insurer is authorised, use the APRA register; to check a broker's licence, use the professional registers on ASIC's website. Workers compensation rules are set by each state and territory regulator. For disputes, see how AFCA complaints work.