If you’re a business owner, chances are you know about Public Liability Insurance

It protects you if someone gets hurt or their stuff gets damaged because of your business.

But did you know some industries pay way more for this cover due to their risks? 

Let’s go over the top 15 industries in Australia requiring Public Liability Insurance, why they’re so expensive, and what this means for you. 

15. Events and Entertainment

Concerts, festivals, or sporting events use stages, lighting, or even fireworks which can be dangerous. People drinking or doing physical activities can cause slips, falls, or equipment failures.

A lot of events also happen in temporary or unfamiliar spots, say outdoor festivals or pop-up venues, which may lack great safety setups, making accidents more likely. 

Due to these specific risks, the required amount of coverage may vary depending on the type of event. 

For instance, events that need a permit are often required to get a minimum of $20 million Public Liability coverage.

14. Pharmacies

Pharmacies can make mistakes when giving out medication, which can seriously harm customers.

They also stock heavy items, shelving, and medical equipment that can cause injury if they fall or malfunction. 

These can lead to costly lawsuits, especially if those who are complaining are elderly or those who sustain serious injuries.

13. Trades (Plumbing, Electrical, Carpentry)

Tradies often work in all sorts of places. Think construction sites, private homes, or commercial properties. 

They deal with different hazards, like exposed wiring, heavy tools, or unstable structures.

These can cause accidents that hurt someone or wreck a client’s property, so their premiums can cost more as well.

12. Health and Beauty Professionals

Hairdressing, massage, waxing, botox, and other similar treatments or procedures involve close physical interaction with clients. This carries the risks of infection or scarring.

Hair dyes, nail polishes, and skin treatments, as well as lasers, hot wax, and electrical devices, can also be harmful to clients if misused, triggering allergies or causing burns. 

11. Agriculture

Farmers use heavy machinery and chemicals. They also take care of livestock and operate in uneven terrain. This increases the likelihood of accidents or injuries to workers, visitors, or third parties.

There are also farms that are in agritourism, offering farm tours and joining farm shops or other public events. This elevates the risks by having higher exposure to potential incidents.

10. Property Ownership and Real Estate

Public access to properties means that more people can walk through, which leads to potential accidents such as trips or falls. 

Old and poorly maintained buildings, faulty electrical systems, uneven walkways, dim lighting, and other issues can also cause injuries or property damage which trigger liability claims.

9. Labour Hire Firms

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Labour hire firms send workers to high-risk industries (construction, mining, or scaffolding) where the chances of accidents, injuries, or property damage is greater. 

Additionally, they are responsible for their workers’ actions at various client sites. If one of their workers hurts someone or damages something, these firms may face claims.

Higher risk leads to higher premiums.

8. Transport and Logistics

Trucks, vans, or forklifts can crash or cause injuries, especially on roads or in warehouses. 

These accidents can lead to large payouts, especially if they result in serious injuries to pedestrians or other vehicles, or environmental damage like fuel spills.

The liability claims for these extend to medical costs, legal fees, and compensation which raises premiums even higher.

7. Cafes and Restaurants

Preparing and serving food to customers brings risks. Be it food poisoning, allergic reactions, or burns from hot drinks. 

Accidentally serving contaminated food? Fights, accidents, or injuries caused by intoxicated patrons? 

This can cost a fortune and potentially damage the reputation you’ve built for years which drive up the cost of premiums.

6. Commercial Cleaning

Cleaners polish clients’ offices, retail spaces, homes, and other properties using chemicals, slippery solutions, and equipment like vacuums or floor polishers.

This involves the risks of accidentally damaging valuable items or causing spills, burns, or injuries to clients and visitors, resulting in costly claims. 

As part of a contract’s condition, a good deal of clients require cleaners to carry their own public liability insurance.

5. Mining

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Mining is an important industry in Australia as it contributes billions to the country’s wealth. 

However, it is full of dangerous activities like blasting, drilling, and operating heavy machinery in challenging conditions.

Mining incidents can also lead to damaging outcomes, such as mine collapses, explosions, or environmental damage which can possibly end up in multimillion-dollar claims.

And although not all mining businesses are required to obtain Public Liability Insurance, the government requires some, especially holders of mining licenses, permits, or leases, to maintain Public Liability Insurance. 

These extremely high-risk operations, combined with government regulations, drive up the costs of premiums. 

4. Manufacturing

Manufacturers operate with the help of heavy machinery, power tools, chemicals, and high-temperature processes.

Defective products produced by manufacturers can also cause harm or damage after leaving the facility. 

These can cause equipment malfunctions, explosions, injuries, or large-scale property damage which can lead to expensive claims and high premiums.

3. Retail

Shops have tons of customers, so there’s a big chance of slips, trips, or bumps, which accumulate into frequent claims. 

Insurers price premiums to account for this volume.

In addition, some products may be unsafe or have defects. If a customer gets hurt because of such products, retailers can be held responsible. And even if the retailer didn’t manufacture the product, they can still face expensive liability claims.

2. Wholesale

Wholesalers usually work with customers, suppliers, and contractors in warehouses or distribution centres where they handle large volumes of goods, and use forklifts, pallet trucks, and other machineries.

This work setup can be risky, leading to injuries or property damage. 

They also operate in leased premises or under contracts requiring high coverage limits to meet landlord, client, or regulatory standards, increasing insurance costs.

1. Construction

Australia’s construction industry carries out over $252 billion of work every year. But it involves extraordinary risks which causes premiums to soar. 

Construction sites need to use heavy machinery, power tools, heights, and hazardos materials each day. 

Also, sites often have subcontractors, clients, or pedestrians nearby, raising the odds of incidents involving non-employees. 

On top of these, strict safety regulations and project contracts often mandate high coverage limits. And failure to comply can lead to legal or financial penalties.

Key Factors Driving Premiums in 2025

Several factors shape the high premiums in these industries:

• Exposure to Risks: Industries like construction and mining face extreme dangers, increasing the likelihood of claims.
  
  
• Constant Interaction with Clients: Sectors with high foot traffic, such as retail and hospitality, are more prone to incidents like slips or injuries.
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• Compliance to Laws and Regulations: Some trades, like plumbing and electrical contracting, face state-specific mandates for coverage, boosting premiums.
  
  
• Repeated Claims: Industries with frequent claims, such as plumbing, see premium hikes as insurers adjust for risk.
  
  
• Scale of Operations: Larger operations, like those in wholesale or transport, require higher coverage limits, increasing total premiums.

How Can You Manage the Costs?

You can:

• Compare Quotes: Check different insurance companies for better deals.
  
  
• Increase Excess: Raising the excess can lower premiums. But it can also increase out-of-pocket costs for claims so it’s best to be careful and seek help from an insurance broker.
  
  
• Combine Insurance: Try to combine public liability with other insurance types. This may yield discounts.
  
  
• Enhance Safety Measures: Set up better safety rules to avoid accidents. Doing so can lower costs over time.

An insurance broker can help obtain the right insurance

Public Liability Insurance is still considered a crucial part of risk management for Australian businesses.

As premiums rise, driven by trends and risks, businesses must know how to balance getting the right coverage with cost management. 

At Tank Insurance, we can assist you in understanding your industry’s specific needs and exploring cost-saving strategies.

Reach out to us now for tailored advice or quotes.