Why Public Liability Isn't Optional (Even Though It's Not Legally Mandatory)
Public liability (PL) insurance isn't strictly mandatory under Australian law for cleaners. In practice, it's mandatory because:
- Almost every commercial cleaning contract requires it (typically $20M minimum).
- Body-corporate and strata management contracts require it ($10–$20M).
- Many residential clients ask for proof of cover before booking.
- A single uninsured PL incident can wipe out a cleaning business — and the operator's personal assets in a sole-trader structure.
The question for AU cleaners isn't whether to carry PL, it's how much and what gaps to watch.
Coverage Levels — The Real Numbers
The AU cleaning industry has settled on three coverage levels:
- $5M: Minimum advisable cover. Some entry-level residential operators carry this. Most commercial contracts won't accept it.
- $10M: Standard for residential operators. Sufficient for most house cleaning, occasional commercial. Premium typically $400–$700/year for a sole-trader.
- $20M: Required for most commercial contracts and strata management. Premium $700–$1,500/year for a small operator, scaling with turnover.
The choice between $10M and $20M depends almost entirely on what contracts you want to win. If you're bidding for commercial, body-corporate, or government cleaning contracts, $20M is the floor.