Why Longer Public Liability Claims Deserve Renewal Attention

The headline message is not simply that liability cover is getting cheaper or more expensive. KPMG says pricing momentum is moderating after several years of stronger premiums and better underwriting outcomes, while public liability claims appear to be remaining open for longer. That matters because long-running claims can carry uncertainty around legal costs, medical evidence, liability arguments, settlement expectations and the final amount an insurer may need to reserve.

For small business owners, sole traders, tradies, venues and event organisers, the practical implication is that renewal discussions should not focus only on the premium line. A lower or steadier price may still sit alongside tighter questions about business activities, subcontractor use, public access, risk controls, previous incidents, contract requirements and the type of customers or sites involved.

The analysis also reinforces why broad market averages can be misleading. KPMG notes that experience can differ by portfolio characteristics, excess levels and jurisdictions. In plain terms, two businesses in the same broad industry may not be treated the same if one has heavier foot traffic, more hazardous work, a different claims history or contracts requiring higher limits.

Useful renewal preparation may include:

• checking whether business activities have changed since the last policy was arranged;
• reviewing contracts, leases, council permits or venue agreements for minimum insurance requirements;
• documenting safety procedures, incident reporting and maintenance records;
• confirming how subcontractors, labour hire or temporary event staff are treated under the policy;
• considering whether existing cover limits still reflect the size and nature of the risk.

There are limits to what any market report can tell an individual business. KPMGs current analysis relies primarily on data to December 2024, with a later APRA update expected to provide a clearer view of more recent experience. Still, the direction of travel is useful: liability insurance is becoming less about a single market cycle and more about the details of each risk.

That makes clear disclosure and careful record-keeping especially important. If a claim does arise, the quality of the information available can influence how quickly facts are established and how confidently the claim can be assessed. In a market where public liability claims may remain open for longer, preparation before renewal can be just as important as action after an incident.