APRA Data Shows Significant Rise in Public Liability Insurance Premiums

This upward trend in premiums began in 2017 and is largely attributed to a worsening claims experience. Bodily injury claims, in particular, have been a significant driver of increased costs. The average size of finalized bodily injury claims has grown by 5.5% annually since 2013, with work injury claims doubling in size compared to other bodily injury claims. Additionally, there has been a rise in psychological claims, further contributing to the overall inflation in claims costs.

In response to these escalating costs, many businesses have opted for policies with higher deductibles, effectively shifting more risk onto themselves to manage rising premiums. This trend indicates a growing concern among business owners about the affordability and sustainability of public liability insurance.

For small business owners, tradies, sole traders, event organizers, and contractors, the increasing cost of public liability insurance is a pressing issue. The fear of costly third-party claims and legal expenses, coupled with the challenge of comparing insurance products and quotes, underscores the need for affordable yet comprehensive coverage. The APRA data highlights the importance of staying informed about industry trends and seeking expert advice to navigate the complex insurance landscape.

In conclusion, the significant rise in public liability insurance premiums, as reported by APRA, underscores the need for businesses to proactively manage their insurance strategies. By understanding the factors driving these increases and exploring options such as higher deductibles or tailored policies, businesses can better protect themselves against potential liabilities while managing costs effectively.