Clause 7.4—Hold public liability insurance

Clause 7.4

The RTO holds public liability insurance that covers the scope of its operations throughout its registration period.

What clause 7.4 means for your RTO

RTOs are responsible for ensuring they hold public liability insurance throughout their registration period.

Your RTO must hold public liability insurance to cover all training and/or assessment activities it provides as an RTO.

A guide to compliance

RTOs can retain evidence that they hold public liability insurance by keeping a copy of a certificate of currency or similar. Quotes and invoices are not sufficient evidence to prove that insurance is actually in place. The evidence provided must:

  • identify that your RTO is covered by the policy
  • either confirm that training and assessment activities are covered, or that there are no restrictions on the activities covered.

Guidance for enterprise RTOs

Generally, enterprise RTOs exist as a function within the enterprise business structure, rather than an independent business entity (i.e. the RTO shares the same Australian Business Number as the business within which it is embedded).

As such, enterprise RTOs generally do not hold public liability insurance in their own right. Therefore, enterprise RTOs might demonstrate compliance by providing evidence of the public liability insurance for the overarching business entity.

You are required to confirm that you will obtain suitable public liability insurance as soon as registration is granted. This may be checked at any time and will be checked at the post-initial audit (approximately 12 months after your RTO commences operations).

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