Changes to public liability insurance requirements for permits
Currently, persons carrying out commercial activities in Commonwealth reserves under permits issued by the Director of National Parks must carry public liability insurance for an amount of not less than $10 million.
Frequently asked questions
What changes to Public liability insurance are coming into effect for commercial operators in Commonwealth reserves?
The Director of National Parks is increasing the minimum public liability insurance requirement for all commercial activities from $10 million to $20 million
When will this come into effect?
All persons carrying on commercial activities under permits issued by the Director of National Parks will soon be required to carry a minimum of $20 million in public liability insurance. This will be phased in from 1 January 2012, with the cover to be increased to $20 million at the first insurance renewal in 2012. If, for example, your permit expires on 31 March 2012, you will be required to carry $20 million of cover from 1 April 2012 to be issued with your new permit.
What is public liability insurance and why do I need it?
Public liability insurance protects you and your business against the financial risk of being found liable to a third party for death or injury, loss or damage of property or 'pure economic' loss resulting from your negligence.
If you are a tour operator, it also ensures that your tour clients can be compensated if they are injured or lose property while on one of your tours.
Why is the level of public liability insurance to operate in Commonwealth reserves increasing?
The current level of $10 million has been in place for about 10 years.
The Australian Government's general insurance fund, Comcover, has advised the Director of National Parks to increase the minimum level of public liability insurance from $10 million to $20 million per event in line with current industry standards.
Is this increase going to substantially increase the cost of my insurance premium?
We understand that the increased cost of premiums will be modest. The impact on a tour operator to acquire and maintain the higher level of cover should generally be small (and premium costs are tax-deductible).
