Public Liability Insurance

Public liability insurance is not legally compulsory for most businesses in Australia. However, it is required under most commercial leases, many government contracts, and for certain regulated activities such as building and construction work. Regardless of legal requirements, operating without public liability cover exposes your business to potentially devastating financial liability.

Public liability covers physical injury to third parties and damage to third-party property. Professional indemnity covers financial losses suffered by clients due to your professional advice, errors or omissions. A client who slips in your office is a public liability claim. A client who loses money because of your negligent advice is a professional indemnity claim.

Most commercial leases and contracts now require a minimum of $20 million in public liability cover. While $10 million may be adequate for very small, low-risk businesses, the premium difference between $10 million and $20 million is often modest. Shielded generally recommends $20 million as a standard for commercial property owners and tenants.

No. Injuries to your employees are covered by workers compensation insurance, which is compulsory in every Australian state and territory. Public liability only covers third parties such as customers, visitors, contractors, tenants and members of the public.

You report the claim to your insurer as soon as you become aware of it. The insurer appoints a claims manager and, if needed, solicitors to manage your defence. The insurer investigates, negotiates and, if necessary, defends the claim in court. Legal costs are covered by the policy, and the insurer pays any awarded damages up to the policy limit.

Yes, if your policy includes tenant liability or property in care, custody and control cover. This protects you if your business activities cause damage to the leased premises, such as a fire originating from your tenancy that damages the landlord's building. Check your policy wording to confirm this extension is included.

All major commercial insurers in Australia offer public liability cover, including CGU, QBE, Zurich, Vero, Hollard, Allianz and AIG. Public liability is typically included in a business insurance package alongside property and other covers. Shielded compares options across our insurer panel to find competitive cover for your business.

Commercial property insurance covers a wide range of property types including office buildings, retail shops, warehouses, factories, shopping centres, hotels, motels, restaurants, cafes, medical centres, child care centres, gyms, salons, laundromats, churches, petrol stations, mixed-use developments and more. Whether you own a single tenancy or a multi-storey complex, we tailor cover to match your property.

Premiums vary based on building value, location, construction type, tenant occupation and risk profile. A small retail shop may cost $1,500 to $4,000 per year, a standard office building $3,000 to $10,000, and a large warehouse or industrial property $5,000 to $25,000+. High-risk tenancies (restaurants, manufacturing) attract higher premiums. Request a free quote through Shielded for an accurate indication.

Commercial building insurance covers the physical structure including walls, roof, floors, fixed fixtures, common areas, car parks, fencing and services (electrical, plumbing, HVAC) against fire, storm, flood, impact damage, malicious damage, theft and accidental damage. It typically also covers demolition and removal costs, professional fees (architects, engineers) and compliance with current building codes when rebuilding.

If you own a commercial building and lease it to tenants, you need commercial landlord insurance. This covers the building structure, landlord's contents (common area furnishings, HVAC systems), public liability for common areas, loss of rental income if the building is uninhabitable after an insured event, and plate glass. Your tenants are responsible for insuring their own contents, stock and fit-out.

Loss of rental income (also called business interruption for landlords) provides replacement income if your commercial property becomes uninhabitable after an insured event such as fire, storm or flood. It covers the rental income you would have received during the repair or rebuild period, typically for up to 12 or 24 months. This is essential for property investors who rely on rental returns.

Plate glass cover is usually an optional add-on, not included in the base building policy. It covers the cost of replacing glass shop fronts, windows, doors, display cases and signage glass that is accidentally broken or vandalised. For retail properties with large glass frontages, this is an important cover to include.

Generally, the landlord insures the building structure, common areas and landlord's fixtures. Tenants are responsible for insuring their own contents, stock, fit-out, trade fixtures and their own public liability. Most commercial leases clearly define these responsibilities. As a landlord, ensure your lease requires tenants to hold adequate insurance and provide certificates of currency.

Contact us at Shielded Insurance on 1800 97 98 99 or reach out to your insurer directly. We recommend notifying us as soon as possible after damage occurs, documenting everything with photos, securing the premises to prevent further damage, and keeping records of all emergency repair costs.

We compare quotes from leading Australian commercial property insurers including CGU, QBE, Zurich, Vero, Hollard, Allianz, AIG and others. The best insurer depends on your property type, construction, tenant occupation and risk profile. As brokers, we do the comparison work to find competitive and suitable cover for your property.

Review your policy annually at renewal, or whenever there are significant changes such as new tenants, renovations, extensions, changes in building use, or updated valuations. Building replacement costs increase over time – if your sum insured does not keep pace with construction cost inflation, you risk being underinsured at claim time. We recommend a professional building valuation every 3 to 5 years.