Public liability insurance costs have risen sharply across Australia – and the Insurance Council of Australia (ICA) says outdated laws are making the problem worse. The council has released a white paper calling on state and territory governments to update civil liability rules that have not been properly reviewed in almost 25 years.
According to the report, public liability insurance premiums have increased by as much as 60% since 2019. The ICA said this is partly due to complex and lengthy claims processes under outdated laws, as well as rising legal costs in an increasingly litigious environment.
“Insurers have been working with businesses facing affordability pressures and challenges accessing insurance, but it is clear improvements to civil liability settings are needed to ensure they remain fit for purpose,” ICA CEO Andrew Hall said.
The paper identified three main factors behind rising costs: psychological injury claims that take longer to resolve, outdated laws on dangerous recreational activities and “obvious risks,” and the growing number of complex worker-to-worker liability cases.
ICA’s recommendations include modernising definitions, simplifying claims, and aligning laws across states and territories to make the system more efficient and affordable. Hall said reforms should “reduce complexity, address and manage rapid claim increases, and make updates to laws and definitions that are no longer fit for purpose.”
The push for reform has gained traction among those hit hardest by rising insurance premiums, particularly in the live music and nightlife industries. Many small operators say they are being priced out of business by policies they can no longer afford. Australian Live Music Business Council chair Howard Adams said members “are facing substantial hurdles in accessing affordable insurance,” adding that most are sole traders or small to medium-sized businesses already struggling to stay afloat.
Adams said the ICA’s proposals reflect feedback from venues and promoters across the country who have watched their costs climb while legal settings remain unchanged.
“The recommendations in this report are based on wide-ranging feedback from our thousands of members in cities and towns across the whole continent,” Adams said, describing it as “a great opportunity for federal and state governments to work together for the benefit of a struggling live music industry.”
Night Time Industries Association CEO Mick Gibb said the issue affects not only businesses but also the broader creative economy.
“Much has changed in the past 25 years; it is time to ensure the legal frameworks are fit for purpose. Inaccessibility and unaffordability of public liability insurance for nightlife businesses poses a grave risk to the ongoing viability of the venues that give artists, performers and creatives their first platform to showcase their art,” Gibb said.
The ICA said it will keep working with industries on risk reduction but warned that without updated laws, rising insurance costs will continue to strain sectors that play a vital role in Australia’s economy and culture.
