ICA Calls for National Review of Civil Liability Laws Amid Rising Insurance Costs

Public liability insurance is vital for businesses, not-for-profits, and community organisations, offering protection against claims of injury or damage resulting from their operations. However, the ICA reports that since 2019, the average cost of public liability insurance has increased by up to 60%, placing a significant financial burden on various sectors.

The white paper identifies several areas requiring urgent reform:

• Psychological Injury Claims: The complexity and duration of claims related to psychological injuries have increased, often due to a lack of available health professionals, leading to higher costs.
• Legislation on Recreational Activities: Existing laws concerning dangerous recreational activities and obvious risks have not been thoroughly reviewed since 2001, necessitating updates to align with current standards.
• Worker-to-Worker Claims: The rise in worker-to-worker public liability claims, along with legal complexities and prolonged claim periods, is contributing to increased insurance premiums.

The ICA emphasises that while risk management is important, it cannot solely address the structural issues within the current legal framework. A comprehensive review and modernisation of civil liability laws are essential to ensure they are fit for purpose in today's business environment.

For small business owners, tradies, sole traders, event organisers, and contractors, staying informed about these potential legislative changes is crucial. Proactive engagement with industry developments can aid in making informed decisions regarding insurance coverage and risk management strategies.

In conclusion, the ICA's call for a national review highlights the pressing need for legislative reforms to create a more sustainable and affordable public liability insurance market for Australian businesses.