Do You Need Public Liability Insurance Cover?
What is Public Liability Insurance?
Public liability insurance cover protects you and your business if a person who is not employed by you sustains an injury or suffers a loss because of an accidental occurrence that you or your business is found liable. This cover guards against financial loss should you or your company representatives be found negligent.
Do I Need Public Liability Insurance?
If you own a business that involves any kind of interaction with people outside of your company, public liability insurance is a smart choice. While individual insurance cover can vary, most small to medium-size businesses need a policy with the following cover:
- The cost of injuries to third parties as well as medical costs you have paid to assist the victim at their point of need
- Costs of damage, destruction, or loss of physical property
- The costs of damages stemming from the actions of those working on your behalf
- Costs of legal settlement or defence
- Damages to your buildings or materials
- Up to 20 million in liability coverage
Unfortunately, those involved in the property and business sectors face the greatest risk of public liability problems. 2013 saw nearly 32,000 public liability claims; 9,000 of these claims regarded bodily injury.
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What is Product Liability Insurance?
Product liability insurance protects you and your company if a product you design, manufacture, or supply harms a consumer. Product liability cover is highly recommended for businesses in all phases of the supply chain because regardless of your specific role in a product, there is a chance you could face a lawsuit.
While it may seem unfair, those who sell products shoulder some responsibility for the content and performance of the goods. The Australian Competition and Consumer Commission (ACCC) works to assist with the overall safety of products. Since 2012, the ACCC recalled approximately 429 items each year.
Product Liability Insurance Case Study
You sell pet food, and the manufacturer accidentally adds an ingredient that is harmful and potentially deadly to pets. Customers who have animals impacted by the pet food can file a suit against you because you sold the dangerous product. In this instance, product liability cover can take care of court costs and damages awarded to consumers.
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What Can Product and Public Liability Insurance Cover?
All policies are unique to the insured’s needs. Speak with your insurance broker to learn the specifics of your policy. Generally, product and public liability insurance policies will cover:
- Investigation costs
- Settlement fees
- Awarded damages
- Personal injury
- Property damage
- Injuries that occur because of advertising
What is Usually Not Covered by Product or Public Liability Insurance?
- Employee claims
- Asbestos related claims
- Cost related to damage of your own product
- Costs associated with fixing substandard workmanship
- Costs incurred while using a registered motor vehicle
Please remember that this information is not considered to be advice and is not a total representation of all of the facets of the insurance. For complete information, please reach out to a Connect Business Insurance broker.
Why Do Australian Businesses Turn to You for Insurance Needs?
Here at Connect Business Insurance, we have the expertise needed to determine your insurance needs as well as the experience to get your needs met. We make sure your cover is sufficient to meet the unforeseen events that occur at businesses and work sites.
Because Connect Business Insurance associates understand the ins and outs of the insurance industry, they can also suggest different types of insurance cover you may not know you need.
For example, if you are building on your own property, you have the same responsibilities and liabilities as a licensed contractor on a job site. To protect yourself and those on your property, you need an owner/builder policy.
What Other Business Insurance Do I Need?
Connect Business Insurance offers cover to meet all of your business’ insurance needs. Our comprehensive menu of services includes: