Public liability insurance in Victoria: rules and limits

Is public liability insurance compulsory in Victoria? In Victoria, the requirement to hold public liability insurance usually comes from a registration, licence, permit, council or contract (business.gov.au).

• Registrations: registered electrical contractors and licensed plumbers must hold at least $5 million.
• Council permits: footpath trading and event permits set their own limits, such as $10 million or $20 million.
• Contracts and leases: head contractors, clients and landlords can set their own limits.

Your registration, permit or contract sets any minimum limit that applies.

Public liability insurance is designed to cover claims that someone was injured or their property was damaged in connection with your business. Products liability insurance is designed to cover claims that a product you made, sold or supplied caused injury or damage after it left your hands.

The two are usually arranged together as public and products liability insurance. Public and products liability cover may include legal defence costs, compensation and any settlement you are legally liable to pay, subject to the policy terms.

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.

Who needs public liability insurance in Victoria?

Each limit below comes from a different regulator or council, and applies to a specific registration, permit or agreement.

These are examples, not every Victorian requirement. Where more than one applies, each has to be met. Regulators and councils can change these conditions. The body that issues your registration or permit, or the other party to your contract, can confirm the current requirement.

Do you need $5 million, $10 million or $20 million?

Any minimum comes from whoever sets the requirement:

• $5 million: set by some registrations, including registered electrical contractors and licensed plumbers.
• $10 million: set by some council permits, such as footpath trading in Merri-bek.
• $20 million: set by other council permits, such as footpath trading in Yarra and events in both Yarra and Merri-bek.

A registration or permit minimum may not be the only requirement. A head contractor, client or landlord can ask for more. A registered electrical contractor meeting the $5 million minimum may still be asked for a higher limit by a head contractor.

Above any minimum requirement, the limit a business chooses depends on its work, its sites and the number of people around it. An upcover team member or an insurance broker can talk through what those limits mean for a business like yours. Our guide to public liability cover levels explains the other factors.

What should a certificate of currency show in Victoria?

A certificate of currency confirms a policy is in force. The full policy wording sits in a separate document. The registrations and permits above look at these details:

• The insured name. Energy Safe Victoria wants the insurance in the name of the electrical contractor as registered.
• The limit. If your registration, permit or contract names a limit, the certificate needs to show at least that amount.
• Required wording. A licensed plumber's certificate includes the Ministerial Order notation quoted below.
• Any notation. Yarra asks for the council to be noted as an interested party on insurance for events that need a permit.

What do electrical contractors in Victoria need?

Energy Safe Victoria says electrical contracting requires registration under the Electricity Safety Act 1998 and the prescribed insurance (Energy Safe Victoria). It also says:

• the insurance is public liability of at least $5 million
• the insurance must be against personal injury or property damage in connection with the contracting work of the contractor, their employees or agents
• the insurance must be in the name of the electrical contractor as registered with Energy Safe
• applicants make an insurance declaration, acknowledging the insurance requirements and that cover will be in place before they carry out electrical contracting work

Our guide to electrician public liability insurance covers the trade more generally.

What insurance do licensed plumbers need in Victoria?

Licensed plumbers' insurance is set by Ministerial Orders signed on 20 June 2002, including the Licensed Plumbers General Insurance Order (Building and Plumbing Commission). Under that Order, a plumber must have the following cover (Licensed Plumbers General Insurance Order 2002):

• public liability insurance of at least $5 million for any one occurrence
• completed work liability cover of at least $5 million for any one occurrence. The Order defines this as liability for injury to others, or damage to their property other than the plumbing work, arising from that work
• cover for the cost of fixing defects in the plumbing work, and for non-completion if the plumber dies, disappears or becomes insolvent. The minimum is $50,000 per compliance certificate for domestic work and $100,000 for non-domestic work

The Building and Plumbing Commission says plumbing insurance must cover the work for a set period. That period runs from when the plumber agreed to do the work until 6 years after the compliance certificate was issued. The cover should continue for that period even if the plumber stops operating, retires or stops doing plumbing work (Building and Plumbing Commission).

The Building and Plumbing Commission says the certificate of insurance includes this notation:

"This insurance complies with all of the requirements of the Ministerial Order, Licensed Plumbers General Insurance Order, dated 20th June 2002."

What is commonly excluded from public liability insurance?

upcover's public and products liability page lists typical exclusions. Public liability exclusions commonly include, but are not limited to:

• liability arising from using a registered motor vehicle. Some policies include cover, with limits, for injury or damage while loading or unloading goods from a registered vehicle. Injury to other people caused by the vehicle sits with the TAC charge, Victoria's form of compulsory third party (CTP) insurance. Damage to other people's property may sit with commercial motor insurance, depending on the cover arranged (see below)
• dishonest, fraudulent or wilful acts by you. Dishonesty by an employee may sit under the crime or fidelity section of a management liability policy, designed to cover losses from employee dishonesty, where you arrange one
• the cost to redo, correct or improve your own work or fix defects, although the policy may respond to resulting damage to someone else's property
• claims from professional advice or services for a fee. These generally sit with professional indemnity insurance, which is designed to cover claims that your advice, service or work caused a client financial loss
• liability you take on only because of a contract (contractual liability exclusion)

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, and if you have questions you should speak to your insurance broker or the upcover team.

Whether a policy covers property in your care, custody or control, or subcontracted work, varies between policy wordings, so always check with your insurance broker or the team at upcover.

What other insurance might Victorian businesses need?

These arrangements sit alongside public liability insurance:

• Workers' compensation. Victorian employers generally must register for WorkCover insurance with WorkSafe Victoria. One exemption applies to a business with no apprentices that pays, or is liable to pay, less than $7,500 a year in remuneration (WorkSafe Victoria). Some eligible employers are approved to self-insure (WorkSafe Victoria).
• Home Warranty. Home Warranty applies to new eligible domestic building work under eligible contracts signed on or after 1 July 2026, valued at more than $20,000. It may apply where the work is incomplete, defective or non-compliant and the builder fails or refuses to complete or fix it. Contracts signed before 1 July 2026 come under domestic building insurance. Domestic building insurance has generally provided cover for loss when a builder died, disappeared or became insolvent (Building and Plumbing Commission).
• A plumber's defects cover. The defects and non-completion cover a licensed plumber must have relates to the plumbing work itself (see above).
• Motor insurance and the TAC charge. Commercial motor insurance is designed to cover a business vehicle. The TAC charge is paid with Victorian vehicle registration and funds the Transport Accident Commission (TAC). The TAC says the charge covers the owner and driver for liability if the vehicle causes the death or injury of another person (TAC).

What affects the cost of public liability insurance in Victoria?

No single price applies in Victoria. Factors in your price include your activities, turnover, staff numbers, claims history and the limit and excess you choose. The excess is the amount you contribute to a claim. For national pricing, see our guide to public liability insurance cost.

An upcover team member or an insurance broker can talk through these factors, or you can get a public liability quote.

How is Victoria's insurance duty changing?

Victoria is abolishing duty on certain business insurance, including public and products liability (Victorian Budget 2023/24). The rate fell from 10% to 9% on 1 July 2024 (State Revenue Office). It reduces by 1 percentage point a year, and duty on business insurance is to be abolished by 2033 (Parliament of Victoria).

The State Revenue Office has also published a public ruling on the abolition of duty on business insurance.

How upcover can help

upcover arranges public and products liability insurance for Victorian businesses. 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
• 80+ insurance partners

Get a public liability quote, or read our guide to public liability insurance in Queensland if you also trade there.

Frequently asked questions

Is public liability insurance compulsory in Victoria?

In Victoria, the requirement to hold public liability insurance usually comes from a registration, licence, permit, council or contract, such as the $5 million minimum for registered electrical contractors.

Does a Victorian plumber's certificate of currency need special wording?

The Building and Plumbing Commission says a licensed plumber's certificate of insurance includes a notation that the insurance complies with the Licensed Plumbers General Insurance Order dated 20 June 2002, or the Type B Gasfitting Insurance Order for Type B gasfitting work.

Do all Melbourne councils ask for the same public liability limit?

Councils set their own conditions for each permit. Yarra asks footpath traders for $20 million and Merri-bek asks for $10 million. Both ask for at least $20 million for events.

Is insurance duty being abolished in Victoria?

Victoria is reducing duty on certain business insurance, including public and products liability, by 1 percentage point each year from 1 July 2024. Duty on business insurance is to be abolished by 2033.

Does public liability insurance cover my employees in Victoria?

Work-related injury to your workers typically sits with workers' compensation insurance, which Victorian employers generally register for with WorkSafe Victoria. Public liability insurance is designed for claims from other people.

Do sole traders need public liability insurance in Victoria?

Sole traders can be subject to public liability requirements under registrations, permits and contracts, just as companies can. The requirement and minimum limit depend on the particular registration, permit or agreement.

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_{Written by upcover's editorial team.}

_{Rules checked September 2026. This article provides general information only and does not take into account your objectives, financial situation or needs. It is not legal or tax advice. Registration conditions, permit requirements, limits, duty rates and certificate wording are set by regulators, councils and departments and can change, so confirm what applies with the relevant body. Insurance availability and cover are subject to underwriting and the terms, conditions, limits and exclusions of the relevant policy. Read the policy wording and its terms and conditions before deciding. For commercial motor vehicle insurance, also read the Product Disclosure Statement (PDS), Target Market Determination (TMD) and Financial Services Guide (FSG). upcover arranges insurance products with selected insurers and underwriters and does not compare all general insurers or insurance products available in the market.}