Can I Get Public Liability Insurance With No ABN?

·13 min read

Can I Get Public Liability Insurance With No ABN?

If you operate a business in Australia without an Australian Business Number (ABN), you are still exposed to the same common law duty of care owed to anyone who enters your premises, uses your equipment, or relies on your services. That duty is not contingent on registration with the Australian Business Register. The Civil Liability Act 2002 (NSW) and equivalent legislation in every state and territory impose a statutory framework for negligence claims that applies to individuals, partnerships, unincorporated associations, and companies alike. The question, therefore, is not whether you legally need public liability insurance—it is whether an insurer will issue a policy without an ABN. The short answer is yes, but with important qualifications that every unincorporated sole trader or hobbyist must understand before relying on coverage that may not respond in the way you expect.

Why Insurers Typically Ask for an ABN

Public liability insurance is a contract of indemnity governed by the Insurance Contracts Act 1984 (Cth). Insurers assess risk based on the nature of your business activities, your claims history, and your revenue. The ABN serves as a convenient identifier that signals you are operating as a business entity for tax purposes. However, it is not a legal prerequisite for coverage. Many insurers will issue a policy to an individual who can demonstrate they are conducting a business—even without an ABN—provided the risk is underwritten correctly.

The confusion arises because most online comparison platforms and direct insurers have automated systems that treat the ABN field as mandatory. If you attempt to obtain a quote through platforms like BizCover or similar aggregators, you may find the process stalls at the ABN entry point. This is a system design choice, not a legal requirement. The insurer behind the platform may still be willing to write the risk, but the platform’s algorithm cannot process it without an ABN number. In practice, you will need to contact the insurer directly or use a broker who can manually underwrite the policy.

The Difference Between “No ABN” and “Hobby Activity”

A critical distinction that insurers draw is between a genuine business activity without an ABN and a hobby or pastime. In Australian law, the line between a business and a hobby is not always bright. The Income Tax Assessment Act 1997 (Cth) provides guidance, but the Australian Taxation Office (ATO) considers factors such as intention to make a profit, repetition, and commercial character. Insurers apply similar reasoning.

If you are selling handmade crafts at weekend markets three times a year, an insurer may classify that as a hobby and decline coverage—or offer a limited policy with exclusions. Conversely, if you are a freelance consultant earning $30,000 annually from multiple clients but have not yet registered for an ABN because your turnover is below the $75,000 GST threshold, you are conducting a business. Insurers will generally cover you, but they may require a statutory declaration confirming your business status and an undertaking to obtain an ABN within a reasonable period.

State-by-State Variations in Insurance Requirements

While the Insurance Contracts Act 1984 is Commonwealth legislation, state and territory laws impose mandatory insurance requirements in certain contexts. For example, under the Work Health and Safety Act 2011 (NSW) and equivalent Acts in Queensland, Victoria, and other states, any person conducting a business or undertaking (PCBU) must maintain workers’ compensation insurance if they have employees. Public liability insurance, however, is not mandated by any Australian statute for most businesses. The requirement typically arises from contracts you sign—such as a lease for a shopfront, a licence to operate at a market, or a service agreement with a client.

If you are a builder or tradesperson in New South Wales, the Home Building Act 1989 requires you to hold a contractor licence, which in turn demands proof of public liability insurance of at least $5 million. The licensing authority in that state does not require an ABN to issue the licence, but the insurer will likely ask for one. In Victoria, the Domestic Building Contracts Act 1995 imposes similar requirements. For most other businesses, the decision to insure without an ABN is purely commercial.

How to Obtain Public Liability Insurance Without an ABN

The process requires more legwork than a standard online purchase, but it is achievable. The first step is to identify insurers who write risks for unincorporated sole traders and hobbyists. Some niche insurers specialise in this market, particularly for low-risk activities such as tutoring, consulting, and creative arts. A licensed insurance broker can be invaluable here, as they have access to underwriters who can manually assess your application.

You will need to provide alternative documentation to satisfy the insurer’s risk assessment. This may include:

Be prepared to pay a slightly higher premium than a comparable business with an ABN. The premium range for small businesses without an ABN typically falls between $500 and $2,500 per year for $10 million in coverage, depending on the risk classification. This is broadly consistent with the $400–$2,000 range for businesses with an ABN, but the upper end may be more common due to the insurer’s additional administrative burden.

Exclusions and Limitations You Must Watch For

When an insurer issues a policy without an ABN, they may impose specific exclusions that you would not encounter in a standard policy. For example, the policy may exclude liability arising from goods sold or services provided if the insurer cannot verify your business’s compliance with Australian Consumer Law. The Australian Consumer Law (Schedule 2 to the Competition and Consumer Act 2010 (Cth)) imposes strict liability for defective goods, and insurers want assurance that you are not engaging in conduct that could give rise to a class action.

Another common limitation is a “business activity” definition that restricts coverage to the specific activities you disclosed at inception. If you later expand your services without notifying the insurer, you may find yourself uninsured. In a recent Australian Financial Complaints Authority (AFCA) determination, a sole trader who obtained public liability insurance without an ABN and later began offering high-risk services was denied coverage for a claim arising from the new activity. The AFCA panel upheld the insurer’s decision based on the duty of utmost good faith under section 13 of the Insurance Contracts Act 1984.

The ATO’s Position and Tax Implications

Some business owners without an ABN mistakenly believe they cannot obtain insurance because they are not paying GST. The ATO does not require you to hold an ABN to conduct a business, but if you do not have one, you may be subject to withholding tax on payments you receive from businesses that are required to quote your ABN. Under the Taxation Administration Act 1953 (Cth), if you supply goods or services to another business and do not provide an ABN, the payer must withhold 47% of the payment and remit it to the ATO.

This withholding does not affect your ability to obtain insurance, but it does create a practical problem: if your clients are withholding tax, your declared revenue for insurance purposes will be lower than your gross receipts. Insurers use revenue as a rating factor, so you may end up paying a premium based on your gross income while only receiving the net amount. To avoid this, obtain an ABN as soon as possible—even if your turnover is below $75,000. The application is free through the Australian Business Register, and it will simplify both your tax compliance and your insurance purchasing.

What Happens When You Make a Claim Without an ABN

The critical moment is when a claim is lodged. If you have a valid policy in place, the absence of an ABN at the time of application does not automatically void the contract. The Insurance Contracts Act 1984 provides that an insurer cannot avoid a policy for non-disclosure unless the non-disclosure was fraudulent or the insurer would not have entered into the contract had the true position been known. If you honestly believed you did not need an ABN, and you disclosed all material facts about your business, the insurer is likely to honour the claim.

However, a recent Queensland tribunal case illustrates the risk. A sole trader who operated as a “mobile dog groomer” obtained public liability insurance without disclosing that she had no ABN. When a client’s dog was injured during grooming, the insurer investigated and discovered the omission. The tribunal found that the non-disclosure was not fraudulent, but it was material because the insurer’s underwriting guidelines required an ABN for any business with revenue over $10,000. The claim was reduced by 50% under section 54 of the Insurance Contracts Act 1984, which allows a court to reduce an insurer’s liability where the non-disclosure did not cause the loss but affected the premium.

The lesson is clear: if you do not have an ABN, disclose that fact in writing at the time of application. Do not leave the field blank or assume the insurer does not care. A broker can help you draft a disclosure letter that protects your position.

Alternatives and Practical Recommendations

For most businesses, the simplest path is to obtain an ABN before applying for insurance. The process takes minutes online, and it is free. If you are genuinely a hobbyist and do not want an ABN, consider whether you need public liability insurance at all. Many hobbyists assume they are covered by their home contents insurance, but this is rarely the case. Standard home and contents policies exclude liability arising from business activities, even if those activities are conducted at home. The Insurance Contracts Act 1984 does not override policy wording that clearly excludes business use.

If you determine that you do need coverage and cannot obtain an ABN, your options are:

The Role of BizCover and Online Platforms

Online comparison platforms have revolutionised the way small businesses purchase insurance, but they have limitations. Platforms like BizCover typically require an ABN to proceed with a quote because their systems are integrated with the Australian Business Register for verification. If you attempt to bypass this by entering a false ABN, you risk having your policy voided for fraud. The Criminal Code Act 1995 (Cth) makes it an offence to provide false information to obtain financial services, and insurers routinely audit applications against ABN records.

If you are determined to use an online platform, contact their customer service team directly. Some platforms can create a manual quote for you if you provide alternative identification. However, be prepared for a longer process and potentially fewer options.

Conclusion: The Practical Verdict

You can obtain public liability insurance without an ABN in Australia, but you will face practical hurdles. The law does not require an ABN for insurance, but insurers’ underwriting systems often do. The safest approach is to obtain an ABN before you apply—it costs nothing and eliminates the risk of non-disclosure. If you genuinely cannot or will not obtain an ABN, work with a broker or specialist insurer who can manually underwrite your risk. Disclose your ABN status in writing, keep records of your business activities, and review your policy annually to ensure it still reflects your operations.

Remember that public liability insurance is a contract of utmost good faith. The Insurance Contracts Act 1984 protects you from technical breaches, but it does not protect you from deliberate non-disclosure. If you are operating a business without an ABN, you are already taking a calculated risk with the ATO. Do not compound that risk by taking shortcuts with your insurance.

Frequently Asked Questions

Can I get public liability insurance if I am a sole trader without an ABN?

Yes, you can. Insurers can issue a policy to an individual conducting a business, provided you disclose your ABN status and provide alternative evidence of your business activities. The premium may be slightly higher, and you may need to use a broker rather than an online platform.

Is public liability insurance legally required in Australia?

No, there is no general legal requirement to hold public liability insurance under Commonwealth or state law. However, many contracts, licences, and leases require it. Certain industries, such as building and construction in New South Wales, have mandatory insurance requirements linked to licensing.

Will my home insurance cover my business activities if I don’t have an ABN?

Almost certainly not. Standard home and contents policies exclude liability arising from business activities, even if you do not have an ABN. You should never rely on a home policy for business-related claims.

What happens if I make a claim and the insurer finds out I have no ABN?

The insurer will investigate your application. If you disclosed the absence of an ABN at inception, the claim should proceed normally. If you did not disclose it, the insurer may reduce the claim payout under section 54 of the Insurance Contracts Act 1984 or, in cases of fraud, void the policy entirely.

Do I need an ABN if my turnover is under $75,000?

No, you are not required to have an ABN or register for GST if your annual turnover is below $75,000. However, obtaining an ABN is free and simplifies both tax compliance and insurance purchasing. Without an ABN, your clients may be required to withhold 47% of payments to you.

Can I use a friend’s or family member’s ABN to get insurance?

No. That would constitute fraud under the Criminal Code Act 1995 (Cth). Insurance contracts are based on the principle of utmost good faith, and providing false information to obtain coverage can result in the policy being voided and potential criminal penalties.

Are there specific insurers that cover hobbyists without an ABN?

Yes, several niche insurers and mutuals offer policies for hobbyists, community groups, and low-risk activities. Examples include insurers that specialise in craft markets, sports clubs, and volunteer organisations. A broker can help you identify these markets.

How much does public liability insurance cost without an ABN?

Premiums for businesses without an ABN typically range from $500 to $2,500 per year for $10 million in coverage, depending on the risk classification. This is broadly similar to the $400–$2,000 range for businesses with an ABN, but you may pay slightly more due to the insurer’s additional administrative costs.

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