Is general liability the same as public liability in Australia?

General liability insurance and public liability insurance usually describe the same kind of cover: claims that your business injured someone or damaged their property. "General liability" is mainly a US term. In Australia the cover is commonly sold as public and products liability insurance, though some insurers use "general liability" as a product name.

Definitions, limits and exclusions can still differ between policies using either name. That matters if you work with US clients, sign a contract built on a US template or are setting up in Australia from overseas.

Cover depends on the policy and insurer you choose. Check the policy wording and its terms and conditions for what is and isn't included.

General liability vs public liability at a glance

General liability and public liability overlap closely, but the names come from different markets and can carry different extensions.

Public liability insurance in Australia is generally occurrence based. The policy in force when the incident happened is the one that may respond, even if the claim arrives later.

What does public and products liability insurance cover?

Public and products liability insurance is designed to cover claims that your business injured a person or damaged their property, subject to the policy terms.

• Public liability: designed to cover third party claims for injury or property damage connected with your business, such as a customer hurt on a job site.
• Products liability: designed to cover claims for injury or damage caused by a product you made, sold or supplied, once it has left your hands.

Cover may include defence costs, compensation and any settlement you are legally liable to pay, up to the specified limit. For a full breakdown, see what is public liability insurance.

What does general liability insurance mean in the US?

In the US, general liability insurance usually means a commercial general liability (CGL) policy. The US National Association of Insurance Commissioners describes CGL as addressing bodily injury, damage to others' property, slander and libel, and misleading advertising.

An Australian public and products liability policy is designed around injury and property damage. Personal and advertising injury may sit in the policy as a limited extension, or may not be included.

In both markets, injury to your own employees generally sits with workers compensation.

US templates also use terms such as "additional insured" that don't map neatly onto Australian policies. A broker can talk through how that language lines up.

What if a contract asks for general liability insurance?

Contracts with international clients, or with a head contractor using a US style template, sometimes ask for general liability insurance by name. An Australian policy won't necessarily satisfy that clause just because the terminology is close. It helps to check:

• what activities and products the contract wants insured
• whether your specified limit meets the amount in the contract
• whether the contract expects advertising liability or other extensions
• whether the client wants to be noted on your policy, or wants a principal's indemnity extension for liability arising from your work

Contracts commonly ask for a certificate of currency, the insurer's document confirming your policy is in force. Where in doubt, ask your broker to confirm your policy meets the contract rather than relying on the product name.

What should you check in a general liability policy?

The policy wording and schedule tell you more than the product name. Look for third party injury cover, property damage cover, products liability if you supply goods and any advertising liability extension.

Some general liability products include limited advertising liability cover for claims such as misleading advertising or defamation in promotional material. Where publishing content is a large part of a business, media liability insurance or professional indemnity cover is commonly arranged for those risks.

Limits are the other common gap, because contracts, licences and venues set their own public liability minimum requirements. An upcover representative or a broker can talk through what those limits mean for your business.

What might general liability and public liability insurance not cover?

General liability and public liability policies are designed around injury and property damage, so several business risks sit with other covers. Exclusions commonly include, but are not limited to:

• injury to your own workers, which generally sits with workers compensation
• claims that your advice or services caused a client financial loss, which generally sit with professional indemnity insurance
• liability arising from using a registered motor vehicle
• the cost to redo, correct or improve your own work, although the policy may respond to resulting damage to someone else's property
• liability you take on solely because of a contract
• claims brought in courts in the United States or Canada, which some policies exclude or limit
• gradual pollution, although some policies include limited cover for sudden and accidental events

Important: This list is not exhaustive. Exclusions vary between insurers. Always refer to the policy wording and its terms and conditions for the exclusions that apply to you.

How upcover can help

upcover arranges public and products liability insurance for Australian small businesses, sole traders and contractors, including those with overseas clients. upcover works with 80+ insurance partners and can arrange quotes from a range of insurers.

• 70,000+ businesses covered across Australia
• 4.9/5 customer rating
• Certificate of currency available once your policy is confirmed

Contract asking for general liability insurance? Get a quote for public and products liability insurance through upcover.

Frequently asked questions

Is general liability insurance the same as public liability?

General liability insurance and public liability insurance describe similar cover for third party injury and property damage. In Australia, the cover is usually sold as public and products liability. The extensions included vary between policies.

What is general liability insurance called in Australia?

In Australia, this cover is usually called public liability or public and products liability insurance. Some Australian insurers also sell a product named general liability, which commonly describes public and products liability cover.

Will an Australian policy meet a US contract's requirements?

An Australian public and products liability policy may or may not meet a US style contract. The answer depends on the limits, extensions, territory and jurisdiction the contract asks for. A broker can compare the clause against your policy wording.

Is public liability insurance compulsory in Australia?

Public liability insurance is not a general legal requirement for Australian businesses, but licensing bodies, councils, venues and contracts may set their own conditions. For example, Queensland electrical contractor licences call for public and products liability of at least $5 million. The rule sits in the Electrical Safety Regulation, as set out by WorkSafe Queensland.

Does public liability insurance cover professional advice?

Public liability insurance is designed for claims of injury or property damage, not financial loss from advice. Those claims generally sit with professional indemnity insurance. upcover's guide to professional indemnity vs public liability explains the difference.

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_{The information in this article is general information only and does not take into account your objectives, financial situation or needs. Product names, extensions and contract requirements vary between insurers and contracts, and licensing requirements vary by state and can change, so check with the relevant licensing authority. Before deciding whether a product is right for you, read the policy wording and its terms and conditions. upcover arranges insurance products with selected insurers and underwriters and does not compare all general insurers or insurance products available in the market.}