How to compare public liability quotes: a worked example with the sums shown
A step-by-step comparison of three Australian public liability quotes, with GST, stamp duty, fees, excesses, limits and exclusions tested against five claim scenarios.
To compare public liability quotes properly, first convert each one to a total payable (base premium plus GST, stamp duty and any broker or policy fee), then test each against a few realistic claims, adding the excess you would pay and any amount the policy would not cover because of an exclusion or the limit. The quote with the lowest premium often wins only when nothing goes wrong. In the worked example below, the cheapest quote turns out to be the most expensive in three of five claim scenarios because of its excess and one exclusion.
This guide is part of the business insurance quote checklist. Every figure is illustrative.
The business and the three quotes
An illustrative commercial cleaning business in Melbourne: five staff, $640,000 turnover, office and retail clients, uses chemicals and floor machines, no claims in five years. Victorian business insurance duty of 7% (the rate for policies renewed from 1 July 2026 to 30 June 2027) is applied to the premium plus GST.
| Quote 1 (renewal, direct) | Quote 2 (via broker) | Quote 3 (via broker) | |
|---|---|---|---|
| Limit any one occurrence | $10 million | $20 million | $20 million |
| Property damage excess | $500 | $1,000 | $250 |
| Property being worked on (care, custody and control) | Covered to $25,000 | Excluded | Covered to $50,000 |
| Base premium | $1,100.00 | $980.00 | $1,150.00 |
| GST (10%) | $110.00 | $98.00 | $115.00 |
| Stamp duty (7% of premium + GST) | $84.70 | $75.46 | $88.55 |
| Broker fee incl. GST | $0 | $132.00 | $0 (commission only) |
| Total payable | $1,294.70 | $1,285.46 | $1,353.55 |
Step 1 is done: Quote 2 is the cheapest by $9.24 against the renewal and by $68.09 against Quote 3. Now test them.
Step 2: test five claim scenarios
For each scenario, your cost = total payable + excess + any part of the claim the policy does not pay.
Scenario A: no claims during the year.
- Quote 1: $1,294.70
- Quote 2: $1,285.46 (cheapest)
- Quote 3: $1,353.55
Scenario B: a visitor slips on a wet floor and claims $35,000 for injury. On all three policies the excess applies to property damage only, so there is no excess for injury.
- Totals are the same as scenario A. Quote 2 remains cheapest.
Scenario C: a cleaner stains a client's carpet while cleaning it: $2,400 to replace.
- Quote 1: $1,294.70 + $500 excess = $1,794.70
- Quote 2: carpet being worked on is excluded, so you pay all of it: $1,285.46 + $2,400 = $3,685.46
- Quote 3: $1,353.55 + $250 excess = $1,603.55 (cheapest)
Scenario D: two property damage claims of $1,500 each (both covered by all quotes).
- Quote 1: $1,294.70 + 2 x $500 = $2,294.70
- Quote 2: $1,285.46 + 2 x $1,000 = $3,285.46
- Quote 3: $1,353.55 + 2 x $250 = $1,853.55 (cheapest)
Scenario E: a serious injury claim settles for $14 million.
- Quote 1: limit $10 million, so $4,000,000 is uncovered: $1,294.70 + $4,000,000 = $4,001,294.70
- Quote 2: within the $20 million limit: $1,285.46
- Quote 3: within the $20 million limit: $1,353.55
Step 3: read the results
| Scenario | Cheapest | Most expensive |
|---|---|---|
| A: no claim | Quote 2 | Quote 3 |
| B: injury within limits | Quote 2 | Quote 3 |
| C: damage to property being worked on | Quote 3 | Quote 2 |
| D: two small property claims | Quote 3 | Quote 2 |
| E: catastrophic injury | Quote 2 | Quote 1 |
For a cleaning business, damage to property being cleaned is one of the most likely claims, so Quote 2's exclusion is a serious gap. Quote 3 costs $68.09 more than Quote 2 and $58.85 more than the renewal, but it wins in the likely scenarios C and D and is fully protected in scenario E. Quote 1's $10 million limit may also fall short of what larger clients require.
Reasonable decision: Quote 3, unless Quote 2's insurer will add care, custody and control cover for less than the difference.
Step 4: questions to ask before deciding
- Is the excess per claim or per event, and does it apply to injury claims?
- Are defence costs paid in addition to the limit or within it?
- Is products liability included, and is its limit an aggregate?
- Are there special excesses for particular activities, such as water damage or work at heights?
- Does the policy include principal's indemnity, so that clients can be covered for liability arising from your work?
- What is the cancellation refund if you change your mind?
Each answer can change the result. See common liability exclusions for the clauses to look for.
Step 5: add payment method and timing
If you plan to pay monthly, add the premium funding interest to each quote before comparing. At an illustrative 12% a year over 10 months, funding $1,353.55 adds roughly $76. Use the premium funding calculator and see premium funding and monthly instalments.
If you are GST-registered, the GST is usually claimable as an input tax credit, which narrows the differences slightly but rarely changes the ranking.
Run your own comparison
Enter your three totals, excesses and limits in the liability quote comparison tool. Test at least three claim amounts: zero, a likely property damage claim for your trade, and a claim above your lowest limit. If a quote excludes the likely claim, enter its excess as the full claim amount to model the gap.
Frequently asked questions
Should I always choose the highest limit?
Not always, but if a higher limit costs little extra, it is often worth it. Check what your clients require. See choosing a public liability limit.
What if quotes describe my business differently?
Ask each insurer to confirm in writing that all your activities are covered. A different description can mean different cover.
Is it worth paying a broker fee?
A broker may find cover or extensions you would not get direct and can help at claim time. Compare the total including the fee. See broker or direct.
How do I check an insurer is authorised?
Search APRA's register of authorised general insurers, or ask the broker to confirm the insurer's status in writing.
Sources
- State Revenue Office Victoria — insurance duty in Victoria
- Australian Taxation Office — GST and input tax credits on business insurance
- APRA — register of authorised general insurers
- ASIC — broker licensing and disclosure
