FAQ: Do I need public liability for my business?

Public liability is a big deal. If a client visits your business, or your employees visit client sites and something unfortunate were to happen, your business at at risk of a third party claim for personal injury or property damage.

The Australian government strongly recommends businesses have public liability insurance to cover themselves for potential lawsuits which often equate to far more than the business is able to pay out.

What does Public Liability Insurance cover?

Typically, public liability insurance will cover you for the following:

• Injury to someone else – e.g. If someone trips over equipment at your business and injures themselves

• Damage to someone else’s property – e.g. If you’re an electrician and accidentally break your customer’s glass coffee table while installing a pendant light

• Legal costs - Legal defence and compensation costs related to a claim against you

• Damage to property in your control – e.g. If you damage a washing machine while it’s in for repairs in your store

Public Liability generally includes cover for Products Liability, which is protecting you against claims caused by the products you supply, create or work on. For example, a restaurant being sued by a customer for food poisoning could fall under product liability.

What doesn’t it cover?

There are some limitations to public liability insurance: Public Liability Insurance covers your business in the event of property damage or personal injury to a member of the public (including your clients) as a result of your business activities. This would include if that incident was caused by a member of your staff. It does not, however, cover injury to your staff. For this you need to consider workers compensation insurance.

Public Liability Insurance plays an integral role in protecting you and your business. It’s important you get the correct advice, to ensure you have the right cover in place for any potential exposures. We are specialists when it comes to assisting business owners with their Public Liability Insurance needs – talk to us today and make sure you have the right cover in place.

General Advice Warning: Please be aware that any advice that may have been given or implied is general advice only. We have not taken into consideration your individual needs, objectives or financial requirements. Before deciding to purchase a financial product, you should consider the appropriate Product Disclosure Statement to ensure the product is suitable for your needs. Article originally shared on ausure.com.au