Public Liability Insurance WA: Licences, Permits & Limits

Is public liability insurance compulsory in WA? Some WA licences, council permits and contracts ask for it, such as the electrical contractor's licence, City of Perth permits and Main Roads WA contracts. Your licence, permit or contract sets any minimum limit that applies to your public liability insurance in WA.

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.

Which rules require public liability insurance in WA?

Each requirement below applies to a specific licence, permit or contract.

These are examples, not every WA requirement. Where more than one applies, each has to be met. The body that issues your licence or permit, or the other party to your contract, can confirm the current requirement.

What public liability insurance do WA electrical contractors need?

Regulation 36 of the Electricity (Licensing) Regulations 1991 lets a licence be issued to an electrical contractor holding a policy that is:

• "a current policy of insurance against civil liability"
• for the contractor's own work, whether the contractor is an individual, firm or company
• one "that complies with the requirements specified by the Board"

The WA Government's application page also asks for (WA Government):

• a certificate of currency for public liability insurance issued or printed within the last 30 days
• the certificate in the name of the individual, partnership or company, not a trust or trading name

Neither regulation 36 nor the application page states a dollar limit. The Department of Local Government, Industry Regulation and Safety publishes the application page and can confirm the Electrical Licensing Board's current requirements (WA Government).

Electrical contractor rules differ between states, as our guides to public liability insurance in Queensland and public liability insurance in Victoria explain. You can also read about insurance for electricians.

What public liability limit do WA businesses need?

No single minimum applies across WA. Any minimum requirement comes from the licence, permit or contract in front of you.

City of Perth and City of Vincent permits ask for $10 million or $20 million (City of Perth, City of Vincent). Head contractors, clients and landlords may set their own limit in a contract or lease. That limit may be higher than a permit asks for.

The specified limit is the most the insurer may pay for a covered event, subject to the policy terms. Above any minimum requirement, the specified 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 what level of public liability insurance you need explains the other factors.

Does public liability insurance in WA cover mine site work?

Whether a policy covers mine site work varies between policy wordings, so always check with your insurance broker or the team at upcover. Some public liability policies carry an underground mining exclusion, which removes cover for work or accidents in underground mines.

A public and products liability policy is designed to respond to the activities described on your policy schedule. If a client makes a claim about an activity your schedule leaves out, the insurer may consider declining it if they were not aware of the activity and would not have accepted it as covered under the insurance policy.

Mining clients may also set their own limit and insurance conditions in the contract.

What does public liability insurance commonly exclude in WA?

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 third party injury or property damage caused while loading or unloading goods from a registered vehicle.
• 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. Management liability insurance is designed to help protect a business and its directors, officers and managers against claims about how the business is run.
• 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.

Where do worker injury and vehicle claims generally sit?

Injury to your own workers generally sits with workers' compensation insurance, designed to cover workers who get sick or injured because of work. WorkCover WA says "employers must have workers compensation coverage for anyone who is defined in the legislation as a 'worker'".

Injury to other people caused by a registered vehicle generally sits with compulsory third party (CTP) insurance. Third party personal injury insurance, commonly called CTP, is often part of the vehicle registration fee (business.gov.au). Damage to other people's property may sit with commercial motor insurance, designed to cover a vehicle used for business, depending on the cover arranged.

What affects the cost of public liability insurance in WA?

No single price applies in WA. Your price may depend on factors including your industry classification, your revenue and the stage of your business. Licensing, professional or contractual requirements may also influence the limit of insurance you consider, which may affect the cost.

Your existing controls and risk framework, your answers to insurers' risk questionnaires or proposals, and your recent claims history may also affect the total cost of your insurance. For public liability insurance, the details you give the insurer may also include:

• the activities on your policy schedule
• where you work, including regional, remote or mine sites
• the specified limit you choose and your excess ("the first amount an insured must pay towards a claim before the insurer pays")

WA insurance duty on general insurance is 10% of the total premium, including any GST that applies (WA Government).

What should a certificate of currency show in WA?

A certificate of currency confirms a policy is in force. WA licences, permits and contracts may check these details:

• The insured name and issue date. Electrical contractor applications ask for a certificate in the applicant's own name, issued or printed within the last 30 days (WA Government).
• The limit. A permit or contract may ask for a certificate showing its minimum limit, such as $10 million for a City of Perth obstruction permit.
• The activity. The City of Vincent asks for cover that specifically includes using the footpath for outdoor eating.
• The period. The City of Perth asks for cover to be maintained for the duration of a public trading permit.

Main Roads WA's minor works contracts also ask for satisfactory proof of insurance before work under the contract starts (Main Roads WA).

How upcover can help

upcover arranges public and products liability insurance for businesses in Western Australia. upcover works with 80+ insurance partners and can arrange quotes from a range of insurers.

• 70,000+ businesses covered across Australia
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• 80+ insurance partners

Get a public liability quote.

Frequently asked questions

Is public liability insurance compulsory in WA?

Whether you have to hold public liability insurance in WA depends on your licence, permit or contract, such as a City of Perth permit. For example, regulation 36 of the Electricity (Licensing) Regulations 1991 ties an electrical contractor's licence to a current policy of insurance against civil liability. Main Roads WA minor works contracts ask for a public liability policy for an amount not less than the one stated in the contract.

Does every WA council ask for the same public liability limit?

Councils set their own conditions for each permit. The City of Perth asks for $20 million for outdoor dining and a minimum of $10 million for obstruction permits. The City of Vincent asks for a minimum of $20 million for outdoor eating areas.

Does public liability insurance in WA cover my employees?

Work-related injury to your workers generally sits with workers' compensation insurance. WorkCover WA says employers in the WA scheme "are required to hold insurance cover for all of their workers". Public liability insurance is designed for claims from other people.

Do sole traders need public liability insurance in WA?

Sole traders may be subject to the same licence, permit and contract requirements as companies. The WA electrical contractor's licence application asks for a certificate in the name of the individual, partnership or company (WA Government). See our guide to public liability insurance for sole traders.

Am I covered by my head contractor's public liability insurance?

A head contractor's policy is generally arranged for the head contractor's own business. Some contracts ask for the head contractor's policy to include subcontractors, such as Main Roads WA minor works contracts. Head contractors may ask you to hold your own public liability insurance and show a certificate of currency before you start.

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_{Written by upcover's editorial team.}

_{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: get legal advice about a licence, permit or contract condition that applies to you, and speak with a registered tax agent about insurance duty. Licence conditions, permit requirements, limits and duty rates are set by regulators, councils and agencies 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.}