How Much Does Public Liability Insurance Cost Australia?

Public Liability Insurance Cost Australia: Quick Answer

There is no single flat price for public liability insurance in Australia.

The cost depends on what your business actually does, your annual turnover, employees, subcontractors, claims history and the amount of cover you need.

A lower-risk sole trader may pay substantially less than a plumber, roofer, earthmoving contractor or larger trade business operating across multiple job sites.

The best way to think about public liability pricing is simple: insurers price the risk of your business, not just the words “public liability insurance”.

At ProTrades Insurance, we specialise in insurance for Australian tradies and contractors and can help compare public liability insurance options based on your actual work.

What Affects the Cost of Public Liability Insurance?

Two businesses can both request $20 million public liability insurance and receive completely different premiums.

Here are some of the main factors insurers look at.

1. Your Trade or Occupation

Your occupation is one of the biggest pricing factors.

A lower-risk service business generally presents a different exposure to a roofer, plumber, concreter, welder or excavation contractor.

The higher the chance of third-party injury or property damage, the more this can affect the premium.

2. The Work You Actually Perform

Your job title only tells part of the story.

Insurers may also consider whether your work involves:

Working at heights
Hot works or welding
Excavation
Underground services
Structural work
Waterproofing
Roofing
Commercial or industrial sites
Hazardous locations

This is why correctly describing your business activities is important.

3. Annual Turnover

Turnover can affect the cost of public liability insurance.

A higher turnover may mean more jobs, more customers and greater exposure during the policy period.

Use a realistic estimate when arranging cover rather than simply choosing the lowest possible figure.

4. Employees and Subcontractors

The number of employees and the amount paid to subcontractors can also influence pricing.

Some insurers have different appetites for subcontractor-heavy businesses, labour hire or larger trade teams.

Your business structure should be disclosed accurately when obtaining a quote.

5. Claims History

Previous claims or circumstances can affect insurer appetite and pricing.

The type, frequency and value of previous claims may all be considered.

6. Your Public Liability Cover Limit

Common public liability limits include:

$5 million
$10 million
$20 million

A higher limit can increase the premium, but doubling the cover limit does not necessarily mean doubling the cost.

The right limit should be based on your work, contracts and client requirements.

How Much Does Public Liability Insurance Cost for a Tradie?

There is no useful “average tradie price” that applies to every occupation.

A carpenter, plumber, electrician and earthmoving contractor may all have similar turnover but completely different risk profiles.

As a real pricing example, a recent ProTrades quotation for a sole trader operating a gardening and handyman business with approximately $65,000 turnover and no subcontractors was:

Public Liability Limit	Annual Premium Including Taxes
$10 million	$572.96
$20 million	$614.32

This is one individual quotation example only and is not an indication of the premium every business will receive.

The final premium depends on the individual business, activities and insurer underwriting.

Why Can Public Liability Insurance Prices Vary So Much?

A cheap public liability quote is not automatically the same as a suitable public liability policy.

For example, two tradies may appear similar on the surface.

Business A

Sole trader
Lower turnover
No subcontractors
Domestic work
No previous claims

Business B

Larger turnover
Multiple employees
Subcontractors
Commercial site work
Higher-risk activities

Even if both businesses select $20 million cover, their premiums may be very different.

The insurer is assessing the overall exposure of each business.

How Much Is $5 Million, $10 Million or $20 Million Public Liability Insurance?

The cover limit is only one part of the price.

$5 Million Public Liability Insurance

$5 million may be considered by some smaller businesses and lower-risk operators.

Before choosing this limit, check your contracts and client requirements.

$10 Million Public Liability Insurance

$10 million is a common cover option for Australian contractors and trade businesses.

Some contracts, clients and work sites may specify a minimum liability limit.

For a detailed breakdown, read our guide to $10 million public liability insurance cost in Australia.

$20 Million Public Liability Insurance

$20 million is commonly requested for larger commercial work and where a contract or principal requires a higher liability limit.

The price difference between $10 million and $20 million can vary between insurers and occupations.

Do not assume the higher limit will automatically cost twice as much. Compare the actual premium options available for your business.

Public Liability Insurance Cost for Sole Traders

Sole traders often ask whether public liability insurance is cheaper because they work alone.

Sometimes it can be.

However, being a sole trader does not automatically make the business low risk.

An individual roof plumber working at height may present a different exposure to a sole trader performing lower-risk maintenance work.

Insurers will still consider:

Your occupation
Actual business activities
Turnover
Where you work
Claims history
Required cover limit

Does Your State Affect Public Liability Insurance Cost?

Public liability insurance is arranged for businesses across Australia, but your location can still form part of the overall underwriting information.

More importantly, your contracts, principals and job sites may have their own insurance requirements.

ProTrades Insurance assists tradies and contractors across Victoria, New South Wales, Queensland, Western Australia, South Australia and other Australian states and territories.

How Can Tradies Get a Better Public Liability Insurance Price?

The goal should not simply be to find the cheapest number on a screen.

The goal is to get a competitive premium for cover that correctly reflects your business.

A few things can help:

Describe Your Work Properly

Tell your broker what you actually do.

Do not simply say “builder”, “plumber” or “maintenance” if your work includes more specialised activities.

Use Accurate Business Figures

Provide realistic turnover, employee and subcontractor figures.

Incorrect information can affect the quality of the quotation and the suitability of the cover arranged.

Compare Insurer Options

Different insurers can have different appetites for different trades.

An insurer that is competitive for one occupation may not be the best fit for another.

Review Your Cover Limit

Check whether you actually require $5 million, $10 million or $20 million cover.

Your contracts and clients may already specify the minimum limit required.

Review Your Policy as the Business Changes

A business can change quickly.

New employees, higher turnover, new contracts or different work activities may change your insurance needs.

What Does Public Liability Insurance Generally Respond To?

Public liability insurance is generally designed to cover claims involving third-party personal injury or third-party property damage arising from insured business activities, subject to the policy wording, terms, conditions and exclusions.

It does not automatically replace every other type of business insurance.

Depending on your business, you may also need to consider:

Your insurance should be considered around the work the business actually performs.

Public Liability Insurance Cost FAQs

What is the average cost of public liability insurance in Australia?

There is no single average price that accurately represents every Australian business. Your occupation, turnover, employees, subcontractors, business activities, claims history and cover limit can all affect the premium.

How much is public liability insurance for a sole trader?

The cost depends heavily on the work the sole trader performs. A lower-risk sole trader may pay less than a contractor performing higher-risk trade work.

Does $20 million public liability cost twice as much as $10 million?

Not necessarily. A higher cover limit may increase the premium, but the price increase varies between insurers and occupations.

Can I pay public liability insurance monthly?

Monthly payment options may be available depending on the policy and funding arrangement. Additional costs can apply compared with paying the annual premium upfront.

What information do I need for a public liability quote?

It helps to have your occupation, exact business activities, estimated annual turnover, employee numbers, subcontractor payments, claims history and required cover limit ready.

Get a Public Liability Insurance Quote

ProTrades Insurance specialises in insurance for Australian tradies, contractors and trade businesses.

We take the time to understand the work you actually perform before helping you compare suitable insurance options.

Whether you are a sole trader, subcontractor or growing trade business, our team can help you review your public liability insurance requirements.

Get a public liability insurance quote from ProTrades Insurance today.

How Much Does Public Liability Insurance Cost Australia?