Do You Need Public Liability Insurance Cover?

Do You Own Your Own Business?
You Need Public Liability Insurance That Provides:

Types of Liability Insurance
Cover for legal costs incurred in the defence or settlement of a liability claim
Cover for the costs of physical loss, destruction, or damage to tangible property
Cover for the costs of injuries to third parties, as well as first aid expenses incurred by you for injuries
Liability arising out of damage caused from the act of others acting on your behalf (up to $20m)
Loss or damage to your materials or structures
Up to $20m liability cover

Don't Risk It.

Public And Products Liability Insurance At A Glance

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What Is Public Liability Insurance?

If an accident or unforeseeable incident causes damage of injury to someone (other than your employees), you may be found legally liable to cover the costs.

Public liability insurance can help to protect your business from the financial risk of liability claims - giving you the certainty you need to trade with confidence.

What Is Product Liability Insurance?

No matter how stringent your company is, mistakes can happen. For example, you may design of sell a product that causes a customer harm. Even if you're not at fault, you could risk serious financial damage through legal and court costs if a customer decides to sue you. Product liability insurance is designed to help protect your business if you're sued because a product you sell, assemble or supply has caused harm to a person or property.

Who Should Consider It?

While public and product liability insurance isn't mandatory for most businesses, it is recommended for all companies. That's because the unpredictable nature of accidents makes them hard to prevent - and the costs of being sued can be extraordinarily high.

"Public liability insurance helps protect you and your business against the financial risk of being liable for negligence."

Australian Government, Business.gov.au

Want More Information?

Did You Know?

In 2014, property and business services was the sector with the highest exposure to public liability risk. It was followed by construction, retail, agriculture, forestry & fishing, personal services, and health and community services. (APRA, Review of Claims Trends for Liability Insurance in Australia, 2014)

In 2013, there were close to 32,000 public liability claims made. Of these claims, just over 9,000 were claims for bodily injury. (APRA, Review of Claims Trends for Liability Insurance in Australia, 2014)

Since 2012, the Australian Competition and Consumer Commission (ACCC)has recalled an average of 429 products each year. (Shine Lawyers, "China-Australia Free Trade Agreement: potential commercial implications," 2017)

What Can It Cover?

Public and products liability insurance helps protect you legal liability to third parties, including clients, customers and the public for injury or damage to their property, causes another person. It will generally pay your costs of investigating, defending and settling claims, as well as any compensation payment you are found legally liable to pay. Depending on you policy, public and products liability insurance can cover:

Personal Injury

If somebody is wrongfully injured by your actions or your product, public and products liability insurance can cover you for your liability to pay damages to the claimant.

Property Damage

If property is damaged due to your actions or your product, public and products liability insurance can cover you for your liability to pay damages to the claimant.

Advertising Injury

Liability arising out of advertising carried out by or on behalf of the insured.

What Usually Isn't Covered?

Exclusions, the excess you need to pay and limits of liability can vary greatly depending on your insurer. Policies generally won't include cover for:

  • Cost of rectifying faulty workmanship
  • Damage to your own product
  • Claims by employees
  • Claims arising out of the use of a registered motor vehicle
  • Claims related to asbestos

Important Note

This information is provided to assist you in understanding the term, implications and common considerations in public and products liability insurance. It does not constitute advice, and is not complete, so please discuss the full details with your Connect Business Insurance broker.

Case Study

The offshore manufacturer of George's sunscreen accidentally contaminates the product with chemicals that cause customers to break out in a painful rash.

They file a class suit against George to compensate them for the injury. Luckily, George's policy covers him for the costs of going to court and the damages awarded to the customers.

Why Do Business Owners Across Australia Choose Us
For Their Insurance Needs?

Why Do Business Owners Across Australia Choose Us for Their Insurance Needs?

How Can We Help?

Taking out public liability insurance, especially in building projects, is a real ‘no-brainer’. At Connect Business Insurance, our public liability policies comprehensively cover the risk you face for anyone injured on site, or any third party damage caused while work is being carried out. We also provide insurance for loss or damage to your materials or structures before completion. As an owner/builder or homeowner you take on the same responsibilities during construction as a licenced builder.

Therefore, it is worth remembering there is always a very real risk of accidents occurring while your property is under construction, with the prospect of serious injury occurring on even the smallest of projects.

Are you a tradie? Visit our partner site Tradies365 for specialised public liability insurance.

Other Business Insurance Services

We help reduce workers' compensation costs incurred by businesses by negotiating with leading insurers Australia-wide to ensure you receive the most competitive premium.

We live in a dangerous world, with the prospect of floods and fires, as well as rising crime rates, providing a constant threat to your company's operations.

Whether it be insuring a home building project, building materials and equipment - or your exposure to the community - we have the right team to deal with it.