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| liability insurance |
Who Needs Public Liability Insurance?
If you invite customers or clients to your property, if you make or sell products, if your business interacts with the general public, if you work in the trade industry or take your customers to the public If you - even if you are only a property owner - you need to consider public liability insurance.
“Most businesses should have public liability insurance. This is one of the fundamental forms of insurance cover for a small business, as lawsuits can affect almost every type of industry,” said QBE general manager, small to medium enterprises (SMEs) ), says Aaron Gavin.
What does public liability insurance cover
Common negligence, which involves someone falling into your business premises and injuring yourself, or if you cause injury with a piece of equipment, is an example of what public liability insurance will cover.
“Product liability under public liability insurance may cover you if you serve food that makes a customer sick, or if your product causes harm to another person,” he explains.
According to Gavin, it is important to note the difference between public liability and professional indemnity.
"Public liability covers general negligence, but professional indemnity is designed to cover negligence in your professional service, so it is relevant to businesses that require you to provide special or expert advice for a fee." require, for example, an accountant or IT consultant," he says.
What does public liability insurance not cover
Every insurance policy is different, however, some common examples of public liability insurance exclusions are claims in relation to the use of a vehicle, advertising liability, defective work done or done by you, any breach of professional duty by you, or defamation.
Examples of Public Liability Insurance Claims
One of your electricians has just completed a job at a commercial property. Unfortunately, due to some work done by the electrician, a spark went unnoticed and caused a minor electrical fire, which caught fire in the premises. Your business may be responsible for property damage.
Or perhaps, your showroom floor has just been mopped. It's mainly dry, but a small area remains slippery and you don't have any signs to warn people about. When a customer comes over, slips and injures themselves, they can file a claim against you.
Your friend runs an events business that is running a music festival. A participant in this concert dives into a creek and is seriously injured. The attendee then brings a legal case against the event business, claiming that there were no signs on the site to warn of the potential for damages.
Lastly, your aunt makes children's toys. One of these toys has a sharp edge that bites the child playing with it. The parents can make a claim against your aunt for the injury caused by the defective product.
Who does public liability insurance cover?
A public liability insurance policy covers the business, company directors, business partners and employees.
"A common question is, what public liability insurance do I need as a contractor?" Gavin says.
"A public liability insurance policy will cover a business, but usually not contract workers, so if a business wants to be protected from a contractor's actions, the business or contractor will need to take out additional coverage."
"Some contractors have their own public liability insurance policies as a requirement to be a candidate for the job in the first place," he says.
How much public liability insurance cover do I need?
“Public liability insurance is included in most business insurance packages, but it is important to note what your total public liability amount is and make sure it is sufficient for the needs of your business, especially if it is packaged with other policies. is," warns Gavin.
"Being prosecuted for negligence can be extremely costly and the prospect of this happening to your business is unpredictable."
"The amount of public liability insurance cover depends on the size of the business and the industry, because ultimately, these factors affect a company's level of risk," Gavin says.
Some industries also require a minimum level of coverage to operate legally.
Is Public Liability Insurance Compulsory?
Public liability insurance in Australia is generally not mandated by law, but certain industries or businesses in some states sometimes require a policy, Gavin says.
“If your line of work is known to be accident prone, you may need public liability insurance to be licensed to operate, as is the case with contracting electricians in Queensland,” he explains. .
“Another scenario where public liability insurance is mandatory in Australia is if you are leasing a public venue. In this case, the venue owner or the local council would have to pay for the location.Who Needs Public Liability Insurance?
If you invite customers or clients to your property, if you make or sell products, if your business interacts with the general public, if you work in the trade industry or take your customers to the public If you - even if you are only a property owner - you need to consider public liability insurance.
“Most businesses should have public liability insurance. This is one of the fundamental forms of insurance cover for a small business, as lawsuits can affect almost every type of industry,” said QBE general manager, small to medium enterprises (SMEs) ), says Aaron Gavin.
What does public liability insurance cover
Common negligence, which involves someone falling into your business premises and injuring yourself, or if you cause injury with a piece of equipment, is an example of what public liability insurance will cover.
“Product liability under public liability insurance may cover you if you serve food that makes a customer sick, or if your product causes harm to another person,” he explains.
According to Gavin, it is important to note the difference between public liability and professional indemnity.
"Public liability covers general negligence, but professional indemnity is designed to cover negligence in your professional service, so it is relevant to businesses that require you to provide special or expert advice for a fee." require, for example, an accountant or IT consultant," he says.
What does public liability insurance not cover
Every insurance policy is different, however, some common examples of public liability insurance exclusions are claims in relation to the use of a vehicle, advertising liability, defective work done or done by you, any breach of professional duty by you, or defamation.
Examples of Public Liability Insurance Claims
One of your electricians has just completed a job at a commercial property. Unfortunately, due to some work done by the electrician, a spark went unnoticed and caused a minor electrical fire, which caught fire in the premises. Your business may be responsible for property damage.
Or perhaps, your showroom floor has just been mopped. It's mainly dry, but a small area remains slippery and you don't have any signs to warn people about. When a customer comes over, slips and injures themselves, they can file a claim against you.
Your friend runs an events business that is running a music festival. A participant in this concert dives into a creek and is seriously injured. The attendee then brings a legal case against the event business, claiming that there were no signs on the site to warn of the potential for damages.
Lastly, your aunt makes children's toys. One of these toys has a sharp edge that bites the child playing with it. The parents can make a claim against your aunt for the injury caused by the defective product.
Who does public liability insurance cover?
A public liability insurance policy covers the business, company directors, business partners and employees.
"A common question is, what public liability insurance do I need as a contractor?" Gavin says.
"A public liability insurance policy will cover a business, but usually not contract workers, so if a business wants to be protected from a contractor's actions, the business or contractor will need to take out additional coverage."
"Some contractors have their own public liability insurance policies as a requirement to be a candidate for the job in the first place," he says.
How much public liability insurance cover do I need?
“Public liability insurance is included in most business insurance packages, but it is important to note what your total public liability amount is and make sure it is sufficient for the needs of your business, especially if it is packaged with other policies. is," warns Gavin.
"Being prosecuted for negligence can be extremely costly and the prospect of this happening to your business is unpredictable."
"The amount of public liability insurance cover depends on the size of the business and the industry, because ultimately, these factors affect a company's level of risk," Gavin says.
Some industries also require a minimum level of coverage to operate legally.
Is Public Liability Insurance Compulsory?
Public liability insurance in Australia is generally not mandated by law, but certain industries or businesses in some states sometimes require a policy, Gavin says.
“If your line of work is known to be accident prone, you may need public liability insurance to be licensed to operate, as is the case with contracting electricians in Queensland,” he explains. .
“Another scenario where public liability insurance is mandatory in Australia is if you are leasing a public venue. In this case, the venue owner or the local council would have to pay for the location.
