Public Liability insurance covers you and your business for losses or damage a third party suffers (or claims to have suffered) as a result of your business activities.In plain English this provides protection against legal and court costs (i.e. legal liability) in the event that someone is injured, or has their property damaged while you are providing a service to them. This type of insurance covers incidents that occur not only at your business, but also away from the situation.Keep in mind that this type of insurance will only cover claims made by external parties and not those made by your own employees (you will require Employers Liability insurance for this).
1. …and Products Liability
This is usually included in your Public Liability policy and is important if you sell products or equipment to your customers. It will cover you for claims of bodily injury or property damage arising from the failure of goods sold or supplied by you through your practice.
2. Why do I need it?
In every line of work there is always the potential for something to go wrong – basically accidents happen and when they do, you or your business can be held liable.Regardless of the size of your business, Public Liability claims can be incredibly costly, and even if you are not at fault, you may still incur considerable legal costs while defending yourself.Public Liability insurance is recommended for anyone running a business that generates revenue. Investing in a good policy can provide you with the peace of mind that your business will be protected regardless of what life throws at you.
3. Who is covered by my Public Liability insurance policy?
A Public Liability insurance policy should cover:
- Your business, including any subsidiary companies, and
- Your staff, including any principal, employee, director, partner or employee whilst they are acting within the scope of their duties.
4. Recent examples of Public Liability claims paid through our office:
- Our client installed an air conditioner in a new home in 2011. An elbow on a condensation pipe cracked and leaked inside the wall until the damage became evident in April 2015. The repair bill totalled $44,270 and was paid by the insurer.
- A patron of our client’s service station business claimed he slipped and fell on spilt fuel early in 2012 although nothing was reported to staff until 4 weeks later. Our clients denied any wrongdoing and their insurer vigorously defended the case as having no merit; yet the courts still awarded damages of $127,000 plus costs against our client.
5. How much cover do I need?
The most suitable level of cover will differ greatly depending on the type of business you run, so it is important to discuss your individual needs with our brokerage. As a starting point, limits begin at $5,000,000 with higher limits available up to $100,000,000.
6. Don’t have public liability insurance?
You and your family are exposed. Call our staff and we will personally discuss your needs.