Softer Liability Market May Help Freelancers, But Caution Still Matters

The shift has been identified in commentary on APRA’s revised National Claims and Policies Database, which now includes long-run data for professional indemnity, public and product liability insurance through to December 2024. KPMG’s analysis points to professional indemnity premiums strengthening up to 2021 before moderating, while public liability premiums increased more gradually and then began to ease in 2024.

A separate October 2026 market update from actuarial firm Taylor Fry also points to continuing softness in commercial lines. Its annual Radar report expects average written premiums to fall this financial year across several classes, including public liability and professional indemnity, although it also notes that any major natural disaster or economic shock could alter the cycle.

For freelancers, the practical message is not simply that cover will become cheaper. A softer market can mean more insurer competition and potentially more room to compare options, but individual outcomes still depend on occupation, services provided, claims history, turnover, contract conditions, limits, excesses and policy wording. This is why insurance costs vary so widely between two freelancers who may appear similar on the surface.

The risk is that a lower premium becomes the main focus at renewal. A freelance designer, IT consultant, copywriter, bookkeeper or project manager may still need to check whether the policy limit matches the size of their client work, whether retroactive cover is preserved, whether subcontracted work is treated clearly, and whether exclusions could affect the services they actually provide.

Contract requirements also matter. Some clients require specific professional indemnity or public liability limits before work can begin. If market conditions soften, it may be tempting to reduce cover to save money, but doing so without considering contractual obligations and realistic claim scenarios can create a different kind of risk.

The broader trend is still positive for small business customers if competition improves access and affordability. However, the market remains uneven. Cyber exposures, artificial intelligence risks, natural hazard costs and changing claims experience are still influencing insurer appetite. Freelancers may benefit most by treating the softer market as a prompt to review their cover carefully, rather than assuming a cheaper renewal automatically means a better fit.