Call for Liability Law Reforms Amid Rising Insurance Costs

Examining the Need for Civil Liability Reforms in the Face of Escalating Insurance Costs

Insurance Council Advocates for Liability Law Overhaul to Curb Rising Premiums?w=400

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The Insurance Council of Australia (ICA) has called for urgent reforms to civil liability laws to address the escalating costs of liability insurance premiums affecting businesses nationwide.

In a recently released white paper, the ICA highlights the need to review state-based civil liability laws that have remained unchanged for nearly 25 years.

The report identifies key areas requiring attention, including psychological injuries, worker-to-worker claims, and leisure and recreational risks.

Businesses such as live music venues, festival operators, caravan parks, and amusement venues are particularly impacted by rising liability cover premiums. The ICA emphasizes that insurers have been working with businesses facing affordability pressures, but improvements to civil liability settings are necessary to ensure they remain fit for purpose.

The white paper recommends that the federal government lead a national review of tort law and civil liability, focusing on the ability of small and medium-sized enterprises (SMEs) and non-profits to access insurance. Proposed reforms include:

Implementing tighter rules on claims brought more than three years after an injury.
Addressing the rise in nervous shock claims by third parties.
Ensuring damages for physical and mental injuries are assessed appropriately in common law claims.

For restaurant and café owners, these proposed reforms are particularly relevant. The hospitality industry faces unique risks, including potential liability from customer injuries or food-related illnesses. Rising liability insurance premiums can strain financial resources, making it essential for business owners to stay informed about potential legal reforms and advocate for changes that support sustainable insurance costs.

Engaging with industry associations and participating in consultations can help ensure that the specific needs of the hospitality sector are considered in policy decisions. Additionally, reviewing current insurance policies and working with providers to tailor coverage to the unique risks faced by restaurants and cafés can help manage costs while maintaining adequate protection.

In conclusion, the ICA's call for liability law reforms presents an opportunity for the hospitality industry to address the challenges posed by rising insurance premiums. Proactive engagement and informed decision-making are key to navigating this evolving landscape and ensuring the long-term viability of businesses in the sector.

Published:Thursday, 15th Jan 2026
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

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Replacement Cost:
The amount it would cost to replace or rebuild an insured asset with one of similar kind and quality, without depreciation.