If you’ve ever filled out a public liability insurance form and seen the question about your annual turnover, you’ve probably wondered:

“Why do they even care how much money I make?”

It’s a really common question and as an insurance broker, let me explain why it’s actually a big deal and Why Your Turnover Matters for Public Liability Insurance.

Turnover = Activity, Not Profit

When insurers ask about your turnover, they’re not being nosy about your profits. They’re using it to understand how busy your business is.

More turnover usually means:

• More customers or clients
• More jobs or contracts
• More interaction with the public

And with all that extra activity comes one simple thing: more opportunities for things to go wrong.

A tradie doing five big jobs a week is exposed to more risk than one doing one or two. Same goes for cafes, salons, or consultants. The more you do, the more the insurer needs to account for potential claims.

How Turnover Affects Your Premium

Insurance premiums are based on risk.
If your business is busier, insurers assume there’s a higher chance something might happen, like property damage or someone getting hurt.

That’s why turnover is a key pricing factor.
It doesn’t mean they’re punishing success, it’s just about making sure your cover matches the scale of your operations.

Don’t Be Tempted to Understate It

It might be tempting to think, “If I just put my turnover a little lower, maybe my premium will be cheaper.”
I totally get it because no one wants to pay more than they have to!

But the thing is, your turnover helps make sure your insurance actually fits your business. If it’s way off, it can make things messy later on if you ever need to make a claim.

While it’s not common for things to go wrong, being accurate just keeps everything straightforward and avoids any awkward back-and-forth with the insurer down the track.

A quick chat with your broker can make sure your numbers make sense and your cover stays spot on.

What You Should Do

Be as accurate as possible. If your turnover fluctuates, use your best estimate based on last year’s numbers and what you expect this year.

And if things change during your policy such as your business grows faster than expected, just let your broker know. We can adjust your cover so you’re still properly protected.

The Bottom Line

Turnover isn’t about judging your income it’s about understanding your exposure.
Being upfront protects you and ensures your insurance will actually do its job when you need it most.

At the end of the day, honesty with your broker means peace of mind for you.