Regardless of the business you're running or the industry you're in, if you have any interactions with your customers, you need to have public liability insurance. This includes if you invite customers or clients to your property, make or sell products, work in the trade industry, or take clients out into the public. Even if you're a property owner, you must be insured if something happens.
Most occupations should have public liability insurance because it is a foundational insurance cover for a small business, and lawsuits can affect nearly every type of industry. Let’s find out more about why SMEs need this vital document.
Public liability is when you are held liable for something you do to someone else, like if you injure them. It is very similar to a professional indemnity policy that covers someone liable for something that goes wrong, even if you didn't injure anyone, in a non-physical way.
Therefore, public liability insurance covers you if you are directly or indirectly responsible for injuring someone or damaging their property. By contrast, professional indemnity insurance covers you if you give professional advice that causes your client to lose money.
For instance, if you own a business, this document may protect you from any legal responsibility if someone is hurt while on-site or they get injured with your equipment. In another scenario, If you sell a product that makes someone sick or hurts someone, your public liability insurance may cover you.
Public liability insurance typically excludes claims arising from the use of vehicles, advertising liability, professional negligence, or defamation. So if anything happens within the exclusions mentioned in this portion, don’t claim remuneration.
Negligence lawsuits can be very expensive, and it's hard to predict if your business may ever be sued for one. This means that the amount of insurance a company needs depends on how big the company is and what industry it is in. This is because these factors may affect how much risk the company is exposed to.
To legally operate, some industries require public liability insurance; most businesses choose to take out a policy as it offers protection against claims made by public members.
Public liability insurance is not required by law in Australia, but there are some instances in which it is required depending on the industry or occupation.
If you work in a field that is considered dangerous, you may need public liability insurance to get a license to work. This is the case for electricians in Queensland.
If you rent a public space, the owner or the local council may require you to have a public liability policy. This insurance may protect you financially if someone is injured or their property is damaged while you are using the space. If someone is hurt or their assets are damaged while you're using the venue, there’s no need to shell out company funds. Your public liability insurance policy may pay the cost of any compensation awarded!
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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.
