What Is Public Liability Insurance?
Public liability insurance provides protection to a business, person, contractor, event or commercial building against potential legal costs if they are found to be at fault for the injury, death, damage to assets or monetary loss as a direct result of their negligence.
In short, it insures your business against claims of injury which may have occurred as a result of your business activity or by a product your business offers.
Industries That Should Consider Public Liability Insurance
If you run a business that has face-to-face contact with customers, suppliers, or members of the public, you should consider taking out public liability insurance. This type of business insurance can protect your business from public liability claims arising from injury or property damage that is caused by your business activities.
Businesses that have regular contact with the public are at a higher risk for liability claims.
Public liability insurance can help businesses such as:
Food services, hospitality and events
Whether you’re a cafe or restaurant owner, caterer, or hotelier, hospitality businesses have a duty of care to their customers, including providing safe food and beverages.
If a member of the public falls ill after eating or drinking at your establishment, public and products liability insurance can provide cover for claims of personal injury suffered by your food or drinks.
Professional services
An essential safeguard for any professional who engages with members of the public as part of their work. Whether you’re an accountant, lawyer, doctor or engineer, public liability insurance can cover your legal liability if someone is injured or their property is damaged as a result of your business activities. If your business hinges on providing professional advice, professional indemnity insurance is also recommended.
Retailers
This type of insurance protects businesses that sell products or services from the risks associated with interacting with the public on a daily basis. If, for example, a customer was to slip on a wet floor or trip over an object in the store, the business would be protected against any resulting personal injury claims.
Mining and construction
Due to the nature of the work, which often involves heavy equipment and machinery, these industries face a high risk of liability claims. Construction sites pose many hazards and If something goes wrong, there is a possibility that members of the public could be injured. Business owners can also take out plant and equipment insurance to ensure specialist machinery, such as cranes and bobcats, are covered for damage and road liability risk.
Tradies
As a tradesman, such as an electrician, carpenter, painter or plumber, you are constantly on the move, visiting a range of locations to carry out your work. Public liability can cover you if you accidentally damage property or injure someone while working.
Why Should I Get It?
Although it’s not compulsory insurance, in most instances, it’s highly recommended that business owners take out this cover if they interact in a public place at any time. In all types of businesses, there is an element of risk that someone may injure themselves or damage property during the hours of operation. This could develop into substantial legal costs, which can be avoided by adding public liability coverage to your business insurance quote.
What Is Covered? Public Liability Insurance Policy Coverage
Public liability insurance will cover your business, and any subsidiary businesses as well as all your staff (if they were acting on behalf of the Company when the incident occurred). It also covers external events that are related to your business but located off-site for:
- Third party injury, damage to property and advertising injury resulting from your business activities
- Products liability cover, including personal injury, damage to property and injury resulting from your products
- Expenses incurred when rendering first aid to a third party
- Legal costs and expenses
- Third party property in your care, custody or control
What’s Not Included? Public Liability Insurance Policy Coverage
It’s important to note that Public Liability Insurance will only cover claims issued by third parties. It will not cover the following:
- Claims or injuries by your employees
- Property damage claims for your own property
- Previously known claims
Public liability insurance protects your legal costs incurred in defending such actions which can be very costly – in some cases more than the original damage itself.
Even though some business insurance policies might include this as part of the overall policy, it’s important to research how much and what you are covered for.
It might seem like a cheaper option at the time but in many cases, it is more beneficial to take out a separate public liability insurance policy.
Speak To A Public Liability Insurance Broker
Contact us today on (08) 9367 7399 to speak to an expert public liability insurance broker. Phoenix Insurance Brokers can provide you with the most suitable public liability insurance quote that will be tailored to your business.
Public Liability Insurance FAQs
Public liability insurance protects businesses from financial losses that may occur as a result of third-party accidents or injuries. For example, if a customer slips and falls on your business premises, public liability insurance would help to cover the costs associated with any medical expenses or legal fees.
Public liability insurance protects your business from third-party claims for personal injury or property damage. as a result of the company’s business operations.
It’s also important to note that liability cover does not protect businesses from losses directly related to their operations, such as product recalls, defective work or injuries sustained by employees. For those types of risks, you’ll need separate insurance policies such as worker’s compensation insurance.
As a sole trader, you are personally responsible for any property damage or injuries that occur as a result of your business activities. Depending on your occupation, insurance may be optional or even mandatory.
To protect yourself and your business, it is highly recommended that sole traders, contractors and subcontractors hold public liability insurance cover.
In most cases, public liability insurance covers personal injury, damage to property, legal costs, and medical expenses.
There are many different types of incidents that can be covered by public liability insurance, including slips, trips, and falls; vehicle accidents; and damage to buildings or other property.
Some examples of incidents that are covered by public liability insurance include
- A customer slipping on a wet floor in a supermarket and injuring themselves.
Your farming equipment causes damage to a neighbouring property. - A visitor tripping over a wire that’s been left lying on the ground of your workshop.
- A product or food item you sold causes injury to a customer.
- Damage to a supplier’s car when they parked it at your premises.
There are a variety of factors that will affect the cost of public liability insurance, including the size and nature of your business, the amount of coverage you need, and the state in which your business is located.
The best way to get an accurate commercial insurance quote is to speak to our experienced brokers.
