Public and Product Liability Insurance Australia

Protect your business against specified claims involving injury to other people or damage to their property.

Clarke Lyons Insurance helps Australian businesses assess their liability exposures, compare insurance options and arrange cover that reflects their activities.

Whether you serve customers, work at client premises or manufacture, import and sell products, understanding your liability protection matters.

Request a public and product liability insurance quote from Clarke Lyons Insurance.

What Is Public and Product Liability Insurance?

Public and product liability insurance addresses specified legal liabilities for third-party injury or property damage connected with your business activities or products.

The two covers address different exposures:

Public liability insurance: Claims arising from your business activities, such as an accident involving a customer or damage caused while working at someone else’s premises.
Product liability insurance: Claims involving injury or property damage arising from products your business supplies.

They are often arranged together. The policy determines which activities, products, liabilities and defence costs are covered.

What Does Public Liability Insurance Cover?

Public liability insurance can respond when a business is legally liable for covered injury to another person or damage to their property arising from its activities.

Relevant exposures include customers visiting your premises, work performed at client locations and interactions with members of the public.

Illustrative examples include:

A customer alleges that an unsafe condition at your shop caused an injury.
A contractor accidentally damages a customer’s property while working.
Equipment used by your business damages neighbouring property.

These examples describe potential claims, not guaranteed outcomes. Liability, causation and the policy wording must be assessed.

Eligible defence costs may also be covered. Check consent requirements and how legal costs interact with the policy limit.

What Does Product Liability Insurance Cover?

Product liability insurance can address specified claims that a product your business supplied caused injury or damage to other property.

Businesses should consider this exposure when they manufacture, import, distribute, wholesale or retail products.

Examples to discuss with your broker include:

An electrical product allegedly causes a fire.
A food product allegedly causes illness.
A supplied component allegedly damages other equipment.

The cost of replacing your own defective product is a separate question. Product liability should not be assumed to cover refunds, warranty obligations, recall expenses or every performance dispute.

Describe the products, their intended uses and the countries where they are sold when requesting a quote.

Who Should Consider Public and Product Liability

Insurance?

Consider the cover wherever your activities or products could injure someone or damage their property.

Tradespeople and Contractors

Explain the work performed, customer locations, equipment used and any higher-risk activities.

A broad description such as “maintenance” may not adequately describe everything the business does.

Retailers and Online Stores

Review both customer-facing activities and the products sold.

Online-only businesses can still have product liability exposures, even without a shop open to the public.

Cafés, Restaurants and Food Businesses

Discuss customer access, food preparation, delivery, catering and packaged products.

Ensure the description reflects all activities rather than only the main trading location.

Manufacturers, Importers and Wholesalers

Provide product categories, intended uses, supply arrangements and sales territories.

Highlight products sold under your own brand and any activities performed by overseas suppliers.

Professional and Office-Based Businesses

Public liability may be relevant to visitors, meetings and work at customer premises. It serves a different purpose from professional indemnity insurance.

Public Liability vs Professional Indemnity Insurance

Public liability and professional indemnity are not interchangeable.

Public liability generally addresses specified injury and property-damage claims. Professional indemnity addresses specified claims arising from professional services or advice, including alleged errors or omissions.

For example, damage caused during a client visit raises different insurance questions from a client alleging financial loss because of an incorrect recommendation.

A business that provides advice and performs physical work may need both. Review how the policies interact.

Explore professional indemnity insurance with Clarke Lyons.

Product Liability vs Product Recall Insurance

Product liability focuses on covered liability claims. Product recall insurance addresses different costs associated with withdrawing or recalling products, where the relevant protection applies.

Do not assume a product liability policy pays for:

Locating and retrieving affected products.
Customer notifications.
Transport, storage or disposal.
Replacement stock.
Lost sales following a recall.

If a recall could create a substantial financial exposure, discuss it separately with your broker.

Is Public Liability Insurance Compulsory in Australia?

Requirements depend on your occupation, location and arrangements.

Public liability is required for certain occupations in some jurisdictions. A landlord, principal contractor, customer or event organiser may also require it under a contract.

It is not accurate to say that every Australian business must hold the same public liability insurance. Check the requirements applying to your activities.

Even where cover is not compulsory, assess the potential financial consequences of a claim.

How Much Liability Cover Does My Business Need?

Consider the potential severity of a claim alongside contractual requirements.

Useful questions include:

Could one incident injure several people?
Could your work damage a high-value building or facility?
Are products used in safety-critical applications?
Could a common defect affect many customers?
Do you sell overseas?
What insurance limits do your contracts require?

Ask whether limits apply per occurrence or in the aggregate, how related claims are treated and whether defence costs reduce the available limit.

Meeting a contract’s minimum limit does not establish that every obligation in that contract is insured.

Contracts, Subcontractors and Overseas Sales

Contractual Liability

Before accepting a broad indemnity, ask how the proposed insurance treats liability assumed under contract.

A promise to reimburse another party for a loss may extend beyond the policy’s protection. Obtain legal advice on significant contractual obligations where appropriate.

Subcontractors

Check whether your policy addresses your liability arising from subcontracted work.

That is different from insuring the subcontractor itself. Confirm each party’s responsibilities and required insurance.

Overseas Products and Customers

Disclose exports and overseas sales, including sales made through online platforms.

Territorial limits and jurisdiction provisions are different considerations. Check where products can be supplied and where claims can be brought.

What Does Public and Product Liability Insurance Not Cover?

Exclusions and limitations vary. Important areas to review include:

Professional advice and services.
Employee injuries and workers compensation exposures.
Damage to property in your care, custody or control.
Defective work or the defective product itself.
Product recall and warranty costs.
Pure financial loss.
Motor vehicle exposures.
Pollution, asbestos and other specifically excluded risks.
Contractual liabilities beyond the insured scope.

Some policies provide limited extensions for particular exposures. Read those extensions alongside their sublimits and conditions.

How Much Does Public Liability Insurance Cost?

There is no single premium suitable for every business.

For a meaningful quote, provide details of your activities, revenue, work locations, products, claims history and required limits.

For product liability, also explain where products are sourced, how they are used and where they are sold.

Compare the cover description, exclusions, excesses and limits alongside the price. Small business insurers assess cost according to the business and its risks.

What Information Is Needed for a Quote?

Prepare:

Your legal entity and trading name.
A complete description of business activities.
Revenue and relevant product categories.
Work locations and sales territories.
Employee and subcontractor details.
Importing, manufacturing and installation activities.
Relevant contractual insurance requirements.
Claims history and current policy documents.

Include secondary activities. Selling a product, installing it and advising customers on its use may involve several different exposures.

Why Choose Clarke Lyons Insurance?

Clarke Lyons Insurance helps Australian businesses assess their insurance requirements and compare available options.

We can discuss your activities, review proposed policy terms and help you understand relevant limitations. Claims assistance is also part of our business insurance service.

Public and product liability can also be reviewed alongside your SME business insurance, property and specialist policies.

Public and Product Liability Insurance FAQs

Where can I get public and product liability insurance in Australia?

Clarke Lyons Insurance can help businesses assess their requirements and obtain insurance options, subject to insurer acceptance. Provide your activities, products and contractual requirements when requesting a quote.

Do sole traders need public liability insurance?

Sole traders should assess the risk of injury or property-damage claims and any legal or contractual requirements. Having no employees does not remove those exposures.

Do online stores need product liability insurance?

An online store should consider liability associated with its products. The absence of a physical shop does not remove the possibility of a product-related claim.

Are imported products automatically covered?

Do not assume so. Declare importing activities, product categories and sourcing arrangements, and confirm insurer acceptance.

Does public liability cover my own tools or premises?

It generally addresses liability to others. Your own assets require appropriate property, tools or equipment cover.

Does public liability cover an injured employee?

Do not rely on it for employee injury protection. Workers compensation is a separate area with jurisdiction-specific requirements.

Will insurance pay if I am not at fault?

A policy may provide eligible defence costs for a covered allegation even where liability is disputed. Check the wording and insurer consent requirements.

What is a certificate of currency?

It is evidence of specified insurance in force when issued. It does not replace the policy wording or confirm that every contractual obligation is covered.

What should I do if someone makes a claim?

Notify your broker or insurer promptly, preserve relevant records and follow the policy’s claims conditions. Seek guidance before admitting liability, agreeing to a settlement or incurring defence costs.

Request a Public and Product Liability Insurance Quote

Understand how your business activities and products are insured before a claim occurs.

Contact Clarke Lyons Insurance to request a public and product liability insurance quote or review your existing cover.

This information is general. Cover depends on insurer acceptance, policy wording, schedules, endorsements, limits and excesses.