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  • Writer's pictureAmanda Bird

Public Liability Insurance vs. Workers' Compensation Insurance - What's the Difference?

Accidents can happen in spite of precautions and even when businesses take steps to avoid injury. To protect your business from the costs associated with an employee being injured, it is critically important to have the proper insurance. Without adequate insurance coverage, you may be liable for damages and legal costs.

Public liability deals with injuries sustained by members of the public or visitors, and workers’ compensation deals with injuries suffered by your own employees or contractors.

When you are starting a new business, you should consider protecting that business with public liability insurance, which will protect the business in the case of an accident or injury involving the public. If a member of the public is injured on your property or at your business, they can file a civil case against your company. Public liability insurance protects against these lawsuits.

If you want to better understand how public liability insurance and workers' compensation insurance work, read on as our insurance specialists discuss the basics you need to know:

What Business Risks Are Covered By Public Liability Insurance Cover?

Public liability insurance is often provided to businesses that manufacture or produce consumer goods. This type of insurance is designed to cover both legal and settlement costs if someone who is not an employee is harmed in your place of business as a result of your negligence.

For instance, if someone visits your office and trips or falls over and they get hurt or their belongings got damaged, they may sue your business if they have reason to believe the accident happened because of your business, like not removing trip hazards.

What Is Not Covered By Public Liability Insurance?

Just like when you’re getting any other insurance policy, you need to understand that not everything is covered. Here are some examples of risks that are not covered by standard public liability policies unless specified otherwise by the insurer:

  • Asbestos liability

  • Cyber liability

  • Faulty or incomplete work

  • Environmental liability

  • Product recalls

  • Professional liability

What Does Workers’ Compensation Insurance Cover?

Workers’ compensation insurance cover is a requirement for all Australian businesses. It is meant to protect the employees. Note that it applies to employees and possibly contractors or subcontractors, providing cover if they get injured while working for your business, or get ill as a result of the work they do for you.

Workers’ compensation insurance providers in Australia may offer different entitlements but here are some of the most common ones:

  • Financial support for as long as they are unable to work

  • Rehabilitation services

  • Medical and hospital expenses

  • Lump-sum payments in case of permanent disability

How Can My Business Access the Right Workers’ Compensation for My Employees?

If you are an employer, then you need to access workers’ compensation insurance coverage to cover your employees. But how do you do that?

If you’re a small business (or you have a small team), you can work with a broker to get a quote. Brokers typically work by canvassing businesses and then providing a quote based on their needs.

On the other hand, if you’re a large employer, you can go directly to an insurance provider and try to negotiate from there.

But you might also want to consider other options like workers’ compensation car insurance. This option is also a kind of workers’ compensation insurance. It offers flexible cover for places where employees are likely to be injured on the job.


The right insurance can help to alleviate the stress of managing insurance costs, but it is not just any insurance. You want to make sure that you are getting the right insurance coverage that will benefit your business best. You also want to go with a company that understands the risks you face and can provide you with the best possible protection to protect your business and its assets.

If you are looking for the right insurance cover, contact an insurance specialist in your area.

New Wave Insurance offers insurance for businesses on the Gold Coast. Get in touch with our insurance specialist so we can help find the right insurance plan for your specific needs!

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