What Does Public Liability Insurance Cover in Australia?

So, What Does Public Liability Insurance Actually Cover?

In simple terms, Public Liability Insurance covers you if your work accidentally causes:

1. Injury to someone

If someone gets hurt because of something you did (or didn’t do), you’re covered.

Example:
A sparkie leaves a tool bag on the floor. A client trips and fractures a wrist.
Public Liability can cover the medical bills and legal costs.

2. Damage to someone else’s property

If you break, crack, dent, smash, or ruin something that isn’t yours – you’re covered.

Example:
A plumber accidentally floods a kitchen while replacing a mixer tap.
Public Liability can cover the clean-up and repairs.

3. Legal costs if someone takes action against you

Even if you did nothing wrong, defence lawyers are expensive. Public Liability can cover the investigation, legal fees, and settlement.

Example:
A client blames a carpenter for structural damage that was already there.
Public Liability can still cover legal defence costs.

4. Damage caused by your employees or subcontractors

If someone working under you causes damage, you’re still responsible — and that’s where your policy steps in.

Example:
Your apprentice drops a ladder onto a client’s car.
Public Liability can cover the repair bill.

What’s NOT Covered by Public Liability Insurance?

Public Liability is powerful — but it’s not a magic umbrella. Here are the big things it doesn’t cover:

1. Your own tools or equipment

If your gear gets stolen or damaged, Public Liability won’t help.

You’ll need separate Tools Insurance to cover stolen or damaged tools.

2. Damage to your own work

If the work itself is faulty or needs redoing, Public Liability doesn’t cover the rework. This usually falls under faulty workmanship, not third-party damage.

3. Professional advice or design errors

If you give advice or do design work that causes someone a financial loss, Public Liability generally won’t respond.

You may need Professional Indemnity Insurance for advice, design, or certification work.

4. Injury to your workers

Public Liability only covers injuries to other people, not your employees.

Worker injuries are usually covered under Workers Compensation, not Public Liability.

5. Business vehicle accidents

Crashes, dents, or third-party damage caused while driving your ute or van aren’t covered by Public Liability.

For that, you’ll need Commercial Motor or Business Vehicle Insurance.

Common Real-Life Examples Public Liability Can Cover

Tradies make mistakes — it happens. These are everyday situations where Public Liability can respond:

• A painter drops paint on a client’s new timber floor.
• A carpenter scratches marble benchtops.
• A plumber bursts a pipe during a reno and ruins cabinetry.
• An electrician damages a switchboard.
• A landscaper hits underground utilities.
• A tiler cracks expensive tiles during demo.
• A roofer causes a leak that damages ceilings and floors.

If it’s accidental and causes property damage or injury to someone else — there’s a good chance it’s something Public Liability is designed to cover.

How Much Public Liability Cover Do Tradies Need?

Most Aussie tradies choose one of these levels:

• $5 million – smaller jobs, domestic work.
• $10 million – most common, often required by builders.
• $20 million – commercial sites, councils, schools, shopping centres.

If you’re working for builders, councils or commercial clients, they’ll often specify the minimum in their contract. You can also compare options and get help choosing the right level of cover on our Public Liability Cost guide.

Do You Need Public Liability Insurance?

If you’re a tradie and you:

• Work on other people’s property,
• Enter residential or commercial job sites,
• Deal with clients or members of the public,
• Run your own business, or
• Use tools, machinery, or equipment on site,

…then yes — you should seriously consider Public Liability Insurance.

If you’re just starting out on your own, our Sole Trader Insurance guide walks through the main covers you’ll want to think about.

How Much Does Public Liability Cost?

Every tradie is different, but as a rough idea:

• Many tradies pay around $600–$1,500 per year for $5m–$10m cover.
• Higher-risk, bigger-contract work with $20m cover might be closer to $1,200–$2,500+ per year.

Your price will depend on things like:

• Your trade (plumber, electrician, carpenter, etc.),
• Your business turnover,
• Your level of cover (sums insured),
• If you have employees or use subcontractors,
• Your previous claims history.

For a deeper breakdown, check out our Public Liability Insurance Cost in Australia article.

Public Liability for Different Trades

While the core idea of Public Liability is the same, the risks look different for each trade. For example:

• Plumbers deal with water damage and flooding risks.
• Electricians deal with fire and electrocution risks.
• Carpenters and builders often work at heights or around structural elements.

If you’re a plumber, you can get a full breakdown of the covers you actually need here: Best Insurance for Plumbers.

Or for a more general overview across tools, liability and more, our Trades Public Liability Insurance page gives a good snapshot of how it all fits together.

Tools, Liability, and the Rest of Your Cover

Public Liability is just one part of the picture. A solid setup for most tradies might include:

• Public Liability Insurance (for injury and property damage to others),
• Tools Insurance (for stolen or damaged tools),
• Vehicle cover (for your ute, van, or truck),
• Income Protection or Personal Accident cover,
• Professional Indemnity (if you’re doing design, advice, or sign-offs).

If you’re not sure what mix you need, start with Public Liability basics and then build out from there based on your trade.

Get Your Public Liability Quote Fast

At ProTrades Insurance, we help Aussie tradies get covered quickly, with no bullshit and no confusing jargon.

• Cover options from $5m, $10m, or $20m
• Australia-wide policies for tradies
• Quotes in minutes over the phone or online
• We handle the paperwork for you
• Certificate of Currency emailed fast so you can get on site

Ready to sort your Public Liability? Get a Public Liability Insurance quote with ProTrades Insurance and keep your business, family and future better protected.