3 min read · Updated . Reviewed by James Rock (National Partnerships Director).
On this page 7
- What’s the difference between public liability and plant insurance?
- Who pays when something goes wrong?
- Does the policy cover any damage to other people’s property?
- Why does injury cover matter around machinery?
- Do I need both?
- Can I get public liability through EquipCover?
- Get an insurance indication for your machine
What’s the difference between public liability and plant insurance?
Public liability looks outward: it responds when someone else claims your business hurt them or damaged their property. Plant insurance looks inward: it pays to repair or replace the machine you depend on. business.gov.au lists them as separate types of business insurance, and that’s how they’re sold.
Who pays when something goes wrong?
| What happens | Plant insurance | Public liability |
|---|---|---|
| Your excavator rolls on a batter | Yes, damage to the machine | No |
| Your machine is stolen from site overnight | Yes | No |
| Your machine catches fire | Yes | No, unless it damages someone else’s property |
| You dig through a client’s water main | No | Usually, subject to the policy |
| A passer-by is hurt by your machine | No | Usually, subject to the policy |
| A part fails from a defect | No | No |
A general guide. The wording of each policy decides what it pays.
Does the policy cover any damage to other people’s property?
A little, in a specific case. The multi-year policy can include third party property damage for machines registered for road use, where your schedule shows it. It doesn’t cover personal injury of any kind, and it doesn’t apply when the machine is being used as a tool of trade, which is most of a working day on site. So it’s no substitute for public liability.
Why does injury cover matter around machinery?
Because the stakes are high. Safe Work Australia reports that 222 workers died from traumatic injuries at work in 2025, the most since 2012, and that machinery operators and drivers had the highest fatality rate of any occupation, at 8.7 per 100,000 workers. Workers’ compensation, not public liability, responds to your own workers, but the same machines work near the public, other trades and clients’ property.
Do I need both?
Most businesses running machinery do. A head contractor or a council will often ask for public liability before you start on site, and a lender will want the machine insured before it settles. Neither is a substitute for the other, so ask for a certificate of currency for each.
Can I get public liability through EquipCover?
No. We connect businesses with a specialist insurance partner for multi-year plant and equipment cover. For public liability, talk to an insurance broker or insurer. Keeping them on separate policies is common, and it means your machine’s price stays fixed for the term.
Get an insurance indication for your machine
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Frequently asked questions
Does public liability cover my excavator?
No. Public liability responds to harm to other people and their property. Damage to your own machine needs plant and equipment insurance.
Does plant insurance include public liability?
Not the policy we refer to. It can include third party property damage for registered machines where the schedule shows it, but not personal injury.
Do I need public liability for earthmoving work?
Head contractors and councils often ask for it before you start on site. Check the contract for the amount they want.
Is a hired excavator covered by my public liability?
Not usually for damage to the machine itself. Check your hire agreement and your policy.
Can I get both on one policy?
Some insurers package them, usually on an annual policy. EquipCover’s multi-year policy covers the machine only.
Sources
- business.gov.au: Types of business insurance
- Safe Work Australia: Key Work Health and Safety Statistics Australia 2026 (12 October 2026)
- Policy wording from our specialist insurance partner: Multi-Year Plant & Equipment Insurance (6 October 2025)
General information only, not personal advice. Read the policy wording before you buy.
