The general liability landscape is shifting, with new liability exposures, legal changes, and regulatory pressures reshaping risk assessment and coverage for insurers.
Dual insurance and contractual complexities
Dual insurance claims are rising in construction, mining, and real estate, shifting liability and spreading settlement costs across multiple policies. Insurers must proactively review policies to manage exposure.
Workplace injury claims and prolonged litigation
Workers’ compensation claims are becoming costlier and more protracted, particularly in Queensland, where overlapping liability frameworks delay settlements and increase defence costs.
Vicarious liability shifts in institutional abuse claims
A landmark High Court ruling has limited institutions’ vicarious liability for non-employees, leading to more negligence-based claims and complex litigation strategies.
LIB fires: An escalating property risk
Fires linked to lithium-ion batteries in consumer devices, e-bikes, and EVs are increasing liability claims.
Regulatory gaps add further uncertainty for insurers.
As the insurance landscape continues to evolve, insurers must adapt quickly to these emerging risks and regulatory changes to ensure effective coverage and risk management.
Belinda Henningham Head of General Liability +61 2 8273 9913 belinda.henningham@wottonkearney.com
Charles Simon Managing Partner, Casualty & Operations +61 2 8273 9911 charles.simon@wottonkearney.com
3 standout insights for general liability
Dual insurance: Rise of claims involving multiple insurers
Dual insurance claims are becoming more common in personal injury matters, particularly in construction, mining, labour hire, and real estate. Contracts that include both indemnity and insurance obligations often allow insured parties to pursue multiple policies.
Insurers should review contracts proactively, as shared liability can reduce individual exposure and lower deductibles for the insured. This trend reflects increasingly sophisticated contractual arrangements, with parties negotiating additional insurance coverage, and is expected to continue growing into 2026.
High Court vicarious liability decision: Institutional abuse claims
A 2024 High Court ruling clarified that vicarious liability is limited to employment relationships, narrowing institutional abuse claim exposure. Where no employment exists, plaintiffs now focus on negligence or systemic failures, often increasing interlocutory applications.
Vicarious liability still applies if wrongful acts occur within an authorised institutional role. Insurers and institutions must adapt claim strategies, emphasising actual knowledge and systemic failures, while monitoring evolving legal interpretations to manage potential financial and reputational risks effectively.
Lithium-ion battery (LIB) fires: Rising property and liability risks
LIB fires are an escalating risk for insurers and property owners.
Devices such as smartphones, e-bikes, and EVs can overheat or suffer damage, triggering intense, hard-to-extinguish fires. Incidents in Australia in 2024, including residential and industrial fires, highlight rising property claims and potential liability under consumer and property laws.
With LIB use expanding and safety regulations limited, insurers need to monitor this emerging risk closely and consider policy adjustments to mitigate exposure to large-scale losses.
Defamation claims are rising, extending general liability coverage beyond traditional “personal injury” to include libel and slander, driven by high-profile cases and social media proliferation.
These emerging risks are increasingly costly and complex for insurers, particularly for media and advisory businesses.
Explore our Media & Defamation insights to see how these claims intersect with personal injury and general liability.
State of the Nation 2025 Report: A guide to personal injury claims in Australia
Australia’s personal injury legislation creates a distinct legal landscape in each state – with every jurisdiction’s unique framework shaping your reserves, settlement approaches, and ultimate claims outcomes.
That’s why we’ve released our State of the Nation Report for 2025, a resource that breaks down the procedural rules, limitation periods, assessment of damages and recent cases for personal injury claims in each Australian state.
We’ve designed this resource for busy insurance professionals who need practical insights, not just legal theory. Whether you’re comparing liability positions across multiple states, briefing your teams on jurisdictional nuances, or developing more effective reserve protocols, this guide delivers the state-by-state intelligence you need.
We hope you find the guide both informative and practical. If you have any questions or would like to discuss any of the topics covered, please reach out to our team or view our General Liability service offering.
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