When it comes to calculating the cost of Public Liability insurance premiums for hospitality and restaurant businesses, a range of factors are taken into consideration. No two restaurants or cafes are the same, which is the same principal when it comes to insurance premiums. Let’s take a closer look at how Public Liability insurance premiums are calculated.


What are some of the factors that affect policy pricing?

Just like other types of insurance policies, there are a number of questions which need to be asked to help determine the cost of the policy. These questions are intended to allow insurers  to get an understanding of the risks that your business is exposed to. Three key areas that insurers will look at include the size of your business, the level of cover you select and the type of industry/occupation your business operates within when calculating the premium.


Size of your business

Whether you’re flying solo or have a tribe of industrious workers, the size of your business and the amount of revenue your business makes can impact the price of your policy.

In fact, the more employees you have, the higher the chance for things to go wrong, increasing the potential for someone to cause an accident such as bodily injury to a customer or a member of the public or damage to their property.

When insurers are calculating your premium for hospitality and restaurant-based businesses, they will typically look at the number of employees a business has, where revenue has a bigger impact when it comes to pricing office-based businesses.

It’s good news for sole traders, who are deemed a lower risk compared to businesses with employees. They pay approximately $59 per month for their Public Liability policy according to our data for hospitality and restaurant owners.

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Level of cover

Like with many things in life, the more you purchase of a product or service the more it ends up costing. It’s a bit different when it comes to Public Liability insurance, where the cost fortunately doesn’t rise too much as the level of cover increases.

The most common level of cover within our hospitality and restaurant customer database is $10 million, with some businesses selecting as low as $5 million and as high as $20 Million as their level of cover. Customers are paying approximately $65 per month for a Public Liability insurance policy with a coverage level of $10 million.

Some of the circumstances which you may take into consideration when selecting your level of cover include the type of risks your business is exposed to, if you take on any contracts (e.g. catering jobs) or any industry requirements your food business may have.


Type of business

Within the hospitality and restaurant industry there are different categories of occupations, each that bring their own level of risk. The nature of your occupation has an influence on the premium, with the higher the risk of your business potentially causing a claim for personal injury or property damage, the higher the premium and vice versa.

It’s important to remember that each insurance company assesses risks differently. One insurer may consider a certain profession a high risk, while another may not consider it as risky. This is mainly due to the number of claims each insurance company receives for each specific occupation.

Here is a breakdown of the average monthly premium by category within the hospitality and restaurant industry:

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The average costs of Public Liability insurance for hospitality and restaurant businesses

Now that we have looked at the factors that are considered when determining a Public Liability insurance policy, lets dive in to the breakdown of industry specific average premium prices within the hospitality and restaurant industry.

How much does Public Liability cost as an average monthly premium?

Hospitality and restaurant owners can expect to pay around $69.10 per month for Public Liability insurance. Our analysis shows that 21.7% of Hospitality customers pay less than $55 per month and 52.1% pay between $56-$75 per month for their Public Liability insurance.

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The average cost by state/territory

Where your business is located within Australia can also affect your premium. Below is a breakdown of the average premium cost by state/ territory.

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Getting cover

The best way to get accurate pricing for Public Liability insurance is to get a quote based on your business and its unique factors. Jump online, answer a few key questions and receive multiple quotes in minutes from Australia’s top insurers.
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