Negosentro.com | 6 Things You Should Know About Public Liability Insurance | If you run a business in Australia, you may have heard of public liability insurance. As a sole trader or small business owner, it is important to understand precisely what public liability insurance is and how it affects you and those around you. Keeping this in mind, here are the six vital points relating to public liability insurance.
What is Public Liability Insurance?
Put in the simplest of terms, public liability insurance may protect you and your business against claims for injuries or accidents caused by your business activities. People can claim against you if they believe there has been any damage to themself or property due to a fault on your part or somebody involved with your business.
Who should get Public Liability Insurance?
While there is no legal necessity for most Australian businesses to have public liability insurance, it is recommended for all sole traders and businesses, especially if you are dealing with the public. A prominent example of this is shop owners who need public liability insurance. Any other businesses that interact with the public should also have public liability insurance.
Find detailed information about Public Liability Insurance cost here.
The nature of your business operations will determine the level of cover you require. While $5 million public liability cover may suffice for an IT contractor, a trade contractor will require at least $10 million cover, possibly even $20 million liability cover if they want to be able to access certain work sites.
What is covered?
The key situations that are typically covered by public liability insurance in Australia are:
-third party injury
-third party property damage
What is not covered?
While public liability insurance covers a lot, there are specific scenarios where the insurance will not come into play. These situations include Acts of God, any damage due to act of war, professional advice, any damage to your own business property, injury to yourself and employees, or any intentional damage.
How to make a Claim
The first step in making a claim, is contacting the insurer or your broker and apprising them of the situation at hand. Ideally, this will need to be collaborated with documentary proof. This is generally followed by an investigation by the insurance provider on the circumstances and whether or not this situation is covered under the insurance. A good insurance broker can help in this process.
*Important: Cover may be available subject to meeting insurers underwriting criteria. Some of the covers listed may or may not be available or may have limitations or exclusions. Cover inclusions vary significantly from insurer to insurer. DO NOT rely upon the above. Check your policy schedule carefully for inclusions and exclusions and limitations. Talk to a business insurance broker for more information.
Romit Malhotra is the brand representative of Smart Business Insurance, a leading Australian insurance broker. A big foodie, he loves to travel the world. Also, a diligent businessman, Romit likes to pen down his thoughts on related topics whenever he finds some free time.