Landlord public liability insurance raises a common question for property owners in Australia: does landlord insurance already include it? This guide looks at what two landlord product disclosure documents say about legal liability, how that differs from a business public liability policy, and what to check before you rely on either. It explains and does not recommend a product.
Quick answer
Some landlord insurance policies include legal liability cover, and the two documents we read do. It is a different product from business public liability cover, and exclusions differ, so check your own wording.
Landlord Public Liability Insurance at a Glance
| Question | Short answer |
|---|---|
| Does landlord insurance include liability cover? | The NAB landlord PDS and a Terri Scheer brochure we read both include legal liability cover |
| What limit do they show? | $20 million in each, per the NAB document and the Terri Scheer brochure |
| Is it required by law? | We found no official page requiring a residential landlord to hold it |
| Is it the same as business public liability? | No. It is a feature of a landlord policy, and the wording differs |
| What commonly sits outside? | Injury to your employees, and claims linked to a business, trade or profession, in the NAB document |
| Who proves your cover? | Your broker or insurer issues a certificate of currency |
What a Landlord Can Be Exposed To
A landlord owns a property that other people live in, visit and work on. If someone is injured or their property is damaged and they say the owner is responsible, that is a third party claim, which is the kind of risk liability cover addresses. Our what-is-it guide explains the idea.
Tenancy law adds a reason to think about condition. The Tasmanian Government says an owner must maintain the property during the tenancy and keep it in near the same condition as at the start, apart from reasonable wear and tear. That page is undated and is about repairs, not insurance, so we use it only to show that the property's condition is the owner's concern. Other states have their own tenancy rules, which we have not checked.
Picture a landlord whose tenant reports a loose stair rail, and a visitor later falls. Whether anyone is liable is a legal question, and whether the policy pays depends on its wording, the limit, the excess and the exclusions. The first step is to read what your landlord policy says about legal liability.
What Two Landlord Policy Documents Say
Both documents are commercial and dated, so they show what the products said, not what every policy says. Check the version you hold.
| Point | NAB landlord insurance PDS | Terri Scheer brochure |
|---|---|---|
| Date | Prepared 1 October 2024 | Marked 10 July 2024, for policies starting on or after 10 August 2024 |
| Insurer named | Allianz Australia Insurance Limited | AAI Limited, trading as Terri Scheer |
| Liability limit | Up to $20 million for any one accident | Limit of indemnity of $20,000,000 |
| What it covers | Legal liability for death, bodily injury or illness, or damage to property, caused by an accident | The landlord's legal liability as owner of the property |
| Exclusions shown | Employees (unless a workers compensation option is chosen), property in your care, custody or control, business, trade or profession claims, asbestos, and building work over $75,000 | None listed in the brochure, which points to the product disclosure statement |
Two features stand out. The NAB document excludes claims connected with your business, trade or profession, and it excludes injury to your employees unless you chose a workers compensation option. So a landlord who runs a property business, or who employs a cleaner or caretaker, should ask whether the landlord policy fits. The limit is shown per accident, which is a wording point to confirm in your own policy.
When Business Public Liability May Be Different
A landlord policy and a business public liability policy answer overlapping but different questions. The first is tied to a property you own and let. The second is tied to your business activities. If the property is run as a business, or you hold a lease that requires a specified cover, you may be asked for a certificate showing business public liability. Business Queensland says a certificate of currency confirms the entity covered, the type or scope of cover and that the policy is valid on a given date.
The test is the contract or the lease. Ask what type of cover the document names, what limit it sets and which entity it expects. If it names public liability and your landlord policy does not say so, ask your broker or insurer whether the policy meets it. Our business guide and certificate guide explain the next steps.
Home and Contents Policies Are Not the Same
Moneysmart describes legal liability cover in home insurance as cover for injury to other people and their property at your home. It also says a granny flat that is usually covered may not be if you are renting it out. So do not assume your own home policy follows the property into a rental arrangement. Ask the insurer before you let any part of a home.
Questions to Ask Before You Rely on a Policy
- Does the policy include legal liability cover, and what is the limit?
- Does an exclusion apply because I run the property as a business?
- Are employees such as cleaners or caretakers covered?
- Does the lease or a strata or body corporate rule require another cover?
- Is the policy in the name of the owner, or of a company or trust?
We did not verify strata or body corporate insurance rules, so ask the manager or your adviser. Our quotes guide explains what to prepare, and our cost guide explains how to read a quote.
Where to Go Next on Cairn Cover
The one thing to remember: landlord public liability insurance is often a feature of a landlord policy, so read that policy's legal liability section before assuming you need another cover. Cairn Cover explains how cover works, links each source on the words it supports and does not sell insurance or give personal advice. Read the national guide, then the Queensland guide for a state example.
Frequently Asked Questions
Does landlord insurance cover public liability? Some landlord policies include legal liability cover. The NAB document and a Terri Scheer brochure we read both do, each showing a $20 million limit. Check your own wording, because exclusions and limits vary.
Is landlord public liability insurance compulsory? We found no official page requiring a residential landlord to hold it. A lease, a lender or a body corporate may ask for cover, so check each. Our requirements guide explains where rules come from.
Is landlord liability cover the same as business public liability? No. Landlord cover is tied to the property you let, while business public liability is tied to your business activities. The NAB document excludes claims linked to a business, trade or profession, so ask if that applies to you.
Does it cover injury to a tenant's visitor? The NAB document covers legal liability for injury to others caused by an accident and does not specifically address tenants. Whether a particular claim is paid depends on the policy wording, so ask your insurer.
What limit do landlord policies show? The two documents we read show $20 million. Our 20 million cost guide explains where that number appears.
How does Cairn Cover help? We explain what policy documents say, link our sources on the words they support and point to related guides. We do not sell insurance or give personal advice.