What happens if you do not have public liability insurance as an artist in Australia can be financially devastating and limit your ability to work. Legally, there is no fine for not having it, because it is not mandatory by law for all businesses, but if someone is injured or their property damaged due to your artwork or activities, you are personally liable for compensation, legal defence and damages, which can range from $20,000 for minor injury to $500,000+ for serious injury, plus legal costs $10K to $50K. For example, if visitor trips over your sculpture at exhibition and breaks leg, they can sue you for medical costs, loss of earnings and pain and suffering, without insurance you pay out of pocket from savings and assets. Also, you will be unable to exhibit at most galleries, art fairs, markets and councils, because they require $10M to $20M public liability certificate before allowing you to exhibit, so you lose income opportunities. If you teach workshops and student injured, you are liable. If you sell product like ceramics that injures someone, product liability claim without insurance could bankrupt you. Your home and contents insurance does not cover business activities, so no cover. While you may save $300 to $600 per year premium, risk is huge. Courts can enforce judgment and seize assets. So without public liability, you risk personal bankruptcy, loss of income because venues refuse you, and inability to get commissions. For $400 per year, it is essential protection and tax-deductible.
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