Public liability vs personal accident insurance: What every organiser needs to know

If you organise events, manage a team, or run a venue or community group, you’re probably familiar with public liability insurance (PLI). But what does it really cover, and where does personal accident insurance fit in? As more clubs and businesses look to step up their duty of care, and as participants themselves get savvier about coverage, the differences matter more than ever.

Flip’s Head of Insurance, Sofia Lemaitre, helps break down the difference between PLI and group personal accident cover, clears up the biggest misconceptions, and explains when and why getting personal accident insurance for participants can be a smart move for organisations of all sizes.

What is public liability insurance (PLI)?

Public liability insurance (PLI) protects organisations, venues, and event organisers if they are found legally responsible for an injury to someone else or damage to another person’s property.

According to Sofia, "Public Liability Insurance is for when you are legally responsible for an injury to someone else. It's about protecting you, the organiser, from a lawsuit." PLI can cover legal costs and compensation if you're found negligent.

However, PLI does not pay anything directly to the injured person unless legal fault is established. Many people wrongly assume it covers all participant injuries, but that’s not right.

What is personal accident insurance?

Personal accident insurance is designed to protect the people participating in your event, including players, volunteers and members.

“Personal Accident Insurance is about the person who got hurt. It pays out directly to them to help with their medical costs and other expenses, regardless of who was at fault,” Sofia explains.

Instead of waiting for a legal process, the injured person can lodge their own claim and receive a prompt payment which they can use to help with medical bills, physio sessions or even the costs of having time off work. There’s no need for blame or lengthy investigations: the focus is on helping people recover and get back to what they love.

Who’s protected? A quick guide

Public Liability Insurance
- Label: Protects the organiser or business
- Short line: Covers legal costs and compensation if you’re found negligent.
- Quick fact: No payment to injured participants unless you’re legally at fault.
Personal Accident Insurance
- Label: Protects participants, players, volunteers
- Short line: Pays cash to the person who’s hurt, no matter who’s to blame
- Quick fact: Helps with recovery costs, fast, no legal process required.

Why bother with group personal accident insurance if it’s optional?

“Public liability insurance is a safety net for the organiser, but it doesn't help the injured person directly,” says Sofia. “Having personal accident insurance shows you care. It’s a way of providing immediate support to your participants, and that’s a great value-add. It’s a clear demonstration of duty of care.”

She also points out: “If someone has a minor accident and you can help them with their recovery costs through a simple, quick process, they are much less likely to escalate and consider legal action. A small investment now might prevent a huge legal bill later.”

Should you have both, or choose one? (Short answer: have both)

We can’t tell you what insurance to buy, and you should always read our PDS to see if Flip is right for your situation. But experts like Sofia believe PLI and personal accident insurance work best together, with each handling different risks. “PLI handles the 'what if I get sued?' scenario, while Flip handles the 'what if someone gets hurt?’” Sofia says. “Having both gives you comprehensive protection and shows you’re a responsible organiser.”

If a trip hazard leads to a lawsuit, PLI is essential. But when a player just twists their ankle on the field, having Flip Group Active means they can claim immediately and use their cash payout for physio or other recovery costs, no red tape or blame needed.

Common myths: What organisers get wrong

Sofia regularly hears three big misconceptions:

“My PLI policy covers participant injuries and medical costs.” Only if you’re found negligent.
“Personal accident insurance is a complicated, slow process.” Not with Flip’s all-digital claims.
“If I have legal cover, I’ve met my duty of care.” Not true. PLI is about protecting you, personal accident is about protecting your participants.

Why PLI and personal accident insurance both make a difference

Sofia shares a scenario: imagine a fun run where a participant breaks their arm due to a foreseeable risk. If only PLI is in place, the organiser could face a legal claim and the participant may wait months for a result. “But if you have Flip and PLI,” Sofia says, “you can tell the participant, ‘You’re covered. You can make a claim right now and get help with your recovery.’” The result? Faster recovery, a happier participant and much less risk of the situation escalating.

Don’t assume all personal accident insurance is the same

If you’re interested in exploring group personal accident insurance for your participants, be sure to do your due diligence.

Sofia warns, “Just like cars or phones, not all personal accident insurance policies are created equal. They can differ significantly in what they cover, how they pay out and how easy they are to use.”

She encourages organisers to “look beyond the name and understand the specifics of each policy.” Some policies focus mainly on lost income or only cover very extreme injuries, while Flip offers direct cash payouts for a broad range of common injuries.

When comparing policies, Sofia recommends:

Check what injuries are covered. Is it just catastrophic events or also sprains, fractures, and concussions?
How does it pay out? Does it require a lengthy process, or is it a quick, direct payment for the injury itself?

Sofia’s expert tips for getting your insurance mix right

Start with the non-negotiable: Public liability insurance is essential legal protection
Look beyond the minimum: Think about what support your community may need if someone gets hurt
Compare policies: Make sure your cover actually fits your group or event
Talk to an expert: It pays to get advice on the best blend for your event or club.

“A small investment in good personal accident insurance can be a powerful risk management tool and a fantastic value-add for your participants.”
- Sofia Lemaitre, Head of Insurance, Flip

Beyond the basics: Protecting people, and your peace of mind

Understanding the difference between public liability and group personal accident insurance goes beyond ticking boxes for compliance. As Sofia puts it, “Going beyond the minimum requirements can make all the difference, both for your peace of mind and your participants’ wellbeing.”

Let Flip help you give your team, group, or event participants more than just a legal safety net. Offer confidence with group personal accident cover that’s easy to understand, quick to claim, and built for active Australians.

Author: Jo Harrison