Owning public liability insurance can protect you from unpleasant situations when a third party is injured or damaged on land or in public spaces due to your business interacting with the public. This article will help you confidently assess your public liability insurance quotes.
Any direct financial costs put on you and your business by accident involving a third party are covered by public liability insurance. This includes legal fees, medical bills, rehabilitation, and repairing damaged vehicles or equipment. When you or a company representative is found negligent, the costs stack up quickly. This adds to the emotional burden.
Public liability insurance is a financial guarantee that you can receive compensation for any damage caused to a third party. Public liability insurance generally will cover:
- Medical costs resulting from injuries in an accident
- Payment to a third party for any property or material damage
- Payment of legal fees out of court
- Damage to your property by actors working on your behalf
- Further problems resulting from actions taken on your behalf
Public liability insurance primarily covers costs associated with third parties, such as inflatable water slide riders. It’s not a substitute for worker’s compensation insurance or business insurance and won’t cover damage claims related to asbestos use, substandard work or personal injury within your product.
No, public liability insurance is not legally required in Australia. That may come as a surprise, given the risks of doing business without it. Of course, it only refers to the statutory requirements—the State and Federal requirements for undertaking a business. However, other entities, such as partners and customers, may have their requirements for doing business with you.
For example, it is not uncommon for contractors to reject a job if your company cannot provide them with a public liability insurance certificate. Similarly, it is not unheard of for employees to turn down a job if the workplace is not covered. Both situations are caused by the desire to avoid paying for any accidents that may occur on the job; since most of us do not carry enough personal liability coverage, we don’t want to go out of pocket after an accident.
The most prominent use of public liability insurance is in the case of an unforeseen accident. For example, a lawnmower operator accidentally hits and injures a passer-by. If they did not have public liability insurance, they would have to cover the cost of their medical expenses, their hospital bills, and any damage to their vehicle.
It provides security and peace of mind, knowing that you are covered if you are sued. What if an employee injures a customer? This can lead to serious financial problems for the business.
Risk mitigation is a crucial part of risk management. Public liability insurance will defend against any legal action resulting from accidents on your premises, to your employees, or caused by your employees or third parties.
Losses associated with public liability risk are unlikely to be covered by your homeowner insurance or business insurance. If you do not carry public liability insurance, your business could be financially damaged by a public liability claim. Businesses that do not carry public liability insurance may also not be competitive in the marketplace.
Public liability insurance provides peace of mind and financial security. It also enhances your reputation in your community and increases the likelihood of being hired for big jobs. It will protect you from lawsuits and help your business grow.
Ensura provides insurance packaged and designed to provide holistic cover for your business. We focus on giving a personalised experience and are obsessed with delivering tailored risk management solutions that balance protection with the right cost. Seek protection with Public Liability insurance today. Get in touch with Ensura!
Disclaimer: As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy document. The information contained on this webpage is general only and should not be relied upon as advice. The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific insurance product. It is only intended to provide education about the financial and insurance industry. The views reflected in the commentary are subject to change at any time without notice.
