Landlords and property investors have a legal responsibility to offer safe rental accommodation for their tenants. However, unforeseen incidents or accidents can happen at any property that could potentially lead to injury of tenants or third parties. 

Public liability insurance is an essential cover that provides financial protection for rental property owners in Queensland against personal injury claims, legal costs, and loss of rental income.


Public liability insurance covers rental property owners for injury or property damage to third parties. It protects landlords against claims, legal costs, and loss of rental income if an incident renders the property uninhabitable. Key covers include personal injury, property damage, legal liability, and loss of rent.

What Is Public Liability Insurance?

Public liability insurance covers the legal liability of rental property owners if a third party is injured or their property is damaged due to an incident at the rental premises. 

Without adequate public liability cover, landlords and property managers may face massive financial losses arising from compensation claims, legal expenses, and loss of rental income during periods when the property is uninhabitable.

Public liability insurance protects the landlord’s assets and future income by covering both legal costs and payouts for valid claims up to the policy limit. 

Common scenarios covered include slips, trips or falls suffered by tenants or visitors at the rental property. Accidental damage to neighbouring properties caused by the landlord or their agent, such as a falling tree branch, would also be covered.

Why Landlords Need Public Liability Insurance

There are several crucial reasons rental property owners in Queensland need adequate public liability cover:

  • Meet Legal Obligations: It meets their legal obligation to provide safe premises for tenants. Public liability insurance covers accidents the landlord could be deemed legally liable for. Having valid cover ensures landlords and real estate investors operate their rental business legally.
  • Cover Legal Costs: The policy covers legal costs if the landlord is sued for negligence by an injured party. Defending such claims is extremely expensive, so having cover for legal liability is vital.
  • Peace of Mind: It provides peace of mind knowing tenants and third parties are covered for injury or property damage caused accidentally. Landlords can avoid stress knowing an incident is covered.
  • Loss of Rental Income: Loss of rental income is covered if the property becomes uninhabitable following a valid claim. This provides essential financial protection for landlords relying on rental income.
  • Protect Assets: Payouts for valid claims protect the landlord’s assets like savings, property portfolio and personal belongings from being sold to fund compensation. Their hard-earned assets are shielded.

What Does Public Liability Insurance Cover?

Public liability policies provide broad coverage for scenarios involving accidental third-party injury or property damage:

  • Personal Injury Coverage: Covers injury to tenants, their guests, or members of the public caused by an incident at the insured property. Common accidents include slips, trips, falls, burns and more. Policies cover medical costs, lost income and compensation payouts.
  • Property Damage Coverage: Covers accidental damage to a third party’s property, such as fence damage from a fallen tree branch. Loss or damage to contents is also covered.
  • Legal Liability Coverage: Covers legal costs and compensation payouts if the policyholder is found legally liable for third-party injury or property damage. Pays for lawyers and court costs, and any awarded damages.
  • Loss of Rent Coverage: Provides reimbursement for loss of rental income if the property is uninhabitable following a valid claim. Keeps cash flow intact if the tenant must temporarily vacate.
  • Malicious Damage Coverage: Some policies cover malicious damage by tenants that leads to third-party claims. For example, deliberately damaging water pipes resulting in flooding.

Young woman in pain after falling down the stairs

Additional Benefits of Public Liability Insurance

Besides covering the major risks outlined above, public liability policies often include additional benefits such as:

  • Accidental Damage Cover: Coverage for incidents caused directly by the landlord or their agent, even if no third party was involved. For example, accidentally damaging the oven.
  • Common Area Coverage: Coverage for injury/damage associated with common areas if the rental is part of a strata complex. For example, a visitor falling in the lobby.
  • Optional Tenant Damage Cover: Optional cover for accidental or malicious damage caused by tenants. Provides protection from rogue tenants.
  • Increased Policy Limits: Ability to increase policy limits above the minimum legal requirement for higher coverage. Provides greater protection for higher-risk properties.
  • Dispute Cover: Cover for legal costs arising from disputes with tenants over incidents involving third parties. Get help resolving messy disputes.

Factors That Determine Premiums

Several key factors determine public liability premiums for Queensland rental properties:

  • Location Risk Profile: Properties in higher-risk areas like the inner city attract higher premiums due to increased chances of an incident occurring.
  • Property Type: Strata flats generally cost less than free-standing houses to insure, based on lower perceived risk.
  • Tenancy Type: Policies for short-term rentals like holiday homes cost more than long-term rentals due to frequent occupant turnover increasing risk.
  • Claims History: Previous valid claims drive up premiums upon renewal by flagging the property as high-risk to insurers.
  • Coverage Amount: Higher limits for legal liability cover costs more, as does increased coverage for loss of rent or other benefits.
  • Excess Level: A higher excess reduces premiums. Opting for this allows landlords to self-insure for small incidents.

Ways for Landlords to Reduce Premiums

Savvy landlords can keep their public liability premiums lower by:

  • Raise Excess: Increasing their policy excess to $500 or $1000 to lower premiums. Opt to cover small claims out of pocket.
  • Risk Management: Implementing risk management measures like regular inspections and maintenance. Proactive prevention of risks and hazards.
  • Tenant Screening: Choosing long-term tenants with a solid rental history lowers risk. Conduct thorough background checks.
  • Property Maintenance: Keeping the property well-maintained and free of hazards through repairs and garden care as required.
  • Annual Reviews: Comparing quotes yearly at renewal to find the best deals. Don’t auto-renew policies without assessing the market.

Finding the Right Policy in Queensland

Finding the right public liability insurance policy for your rental property in Queensland takes some research and comparison shopping. 

Here are some tips:

  • Get quotes from several major insurers in Queensland such as Suncorp, RACQ, Youi, BZI, Budget Direct, and others. This allows you to compare pricing and policy features.
  • Look for landlord insurance policies that are specifically designed for rental properties, rather than standard public liability policies. The landlord policies will include important covers like loss of rent and malicious damage by tenants.
  • Consider the policy limits and excess payments carefully. A $10 million limit is common but you may want $20 million for extra protection. Opt for an excess level you are comfortable paying out of pocket if you need to make a claim.
  • Add any optional covers that are relevant to your situation, such as accidental damage cover to protect against unintentional tenant damage.
  • Read the Product Disclosure Statement (PDS) carefully to ensure you understand what is and isn’t covered by any policy you’re considering.
  • Ask questions and talk to insurance providers if you are unsure about any aspect of a policy. They can explain specific details.

Choosing the right policy takes a bit of time upfront, but gives you peace of mind that your rental property has suitable cover. Review your policy annually to ensure it still fits your needs.

It also helps to learn if insurance proceeds are taxable for rental properties

Making a Claim on Your Policy

Anxious man collecting water from leaking roof while on a call

If an incident occurs at your rental property and you need to make a claim on your public liability insurance, here are some key steps to take:

  • Notify your insurance provider as soon as possible after the incident. There are usually time limits for making claims, such as 30 days from the incident date.
  • Provide details of what happened, including the date, time, location, injuries or property damage, and any evidence like photos. The more details you can give, the better.
  • You will need to supply relevant documentation like police reports, medical reports, rental agreements, inspection reports, receipts, and any proof of loss of rental income.
  • Pay your excess amount upfront when requested. This is the portion of the claim you are responsible for paying before insurance covers the remainder.
  • Complete any claim forms required by the insurance provider. Supply additional information if requested.
  • Expect the claim assessment process to take some time. An insurer will investigate and validate the situation before approving a payout.
  • If your claim is approved, the insurer will pay out compensation to any injured parties and/or reimburse you for costs covered under your policy.
  • If your claim is denied, you can lodge an appeal if you believe the decision was unfair.

The claims process varies between insurers but following these tips will help it go more smoothly. Keep copies of everything and be patient.


Public liability insurance is a fundamental cover rental property owners in Queensland need for protection against tenant and third-party injury claims. 

It covers legal liability for incidents leading to personal injury or property damage, allowing landlords to avoid massive losses. 

Comparing quotes, opting for a higher excess, and proactive risk management are key to reducing premiums. However, compromising on cover limits could leave landlords dangerously exposed. 

Partnering with a trusted insurer can ensure landlords have tailored public liability cover to suit their rental property needs.