Public liability insurance serves as a crucial safety net for businesses, not-for-profits, and community organisations, enabling them to operate securely while serving the public. Industries such as live music venues, festival operators, caravan parks, and amusement venues, which accommodate large numbers of people, heavily rely on this insurance to function effectively.
However, the ICA's findings indicate that claims have become more complex, costly, and prolonged due to existing state laws. This complexity has led to a substantial rise in the cost of public liability insurance, with average premiums increasing by up to 60% since 2019. The ICA attributes this surge to several factors, including an increasingly litigious environment and escalating legal fees.
The white paper outlines three primary areas requiring reform:
- Psychological Injuries: These claims are often more intricate than other injury claims, leading to extended claim durations, further complicated by a shortage of health professionals.
- Legislation Governing Dangerous Recreational Activities and Obvious Risks: Existing laws in this area have not been comprehensively reviewed since 2001 and are now considered outdated and irrelevant.
- Increasing Cost of Worker-to-Worker Public Liability Claims: The legal complexities, prolonged claim periods, and a rise in worker-to-worker claims are placing significant financial pressure on public liability insurance.
The ICA is calling for reforms to reduce complexity, address the rapid increase in claims, and update laws and definitions that are no longer fit for purpose. The last comprehensive review of civil liability laws was the Ipp Review in the early 2000s, which led to reforms that significantly improved business access to affordable public liability insurance.
In addition to advocating for legal reforms, the ICA continues to collaborate with various industries on risk reduction and mitigation strategies to help lower business costs. While reducing risk is essential, ensuring that laws support a sustainable and appropriate public liability insurance market is crucial for the continued operation of many businesses.
For more detailed information, you can access the full white paper released by the ICA.
