What is Public Liability Insurance ?
Public liability is one of the most vital forms of insurance for businesses of all sizes.
As an Australian small businesses, including if you are a sole traders & contractors, you should strongly consider public liability insurance if you have members of the public, customers and suppliers visiting your premises, or if you or your staff visit the premises of customers, suppliers and business partners.
According to the Australian government website for business , www.business.gov.au, and specifically the section on liability insurance, while “liability insurance is optional in most cases,* it is strongly recommended for businesses in all industries as the likelihood of being sued is unpredictable and potentially very costly”
*Smart broker tip:
- Public liability is compulsory for some occupations.
- Please read below or call your SMART business insurance broker on 1300 542 573 for more information
What does public liability insurance cover?
- Legal liability of a business to compensate the damages made to the general public on account of injury, death, damage to property and possessions due to business negligence.
Public liability insurance for small business in Australia
For small business this means public liability insurance may cover third party damages; including legal defence costs.
That is public liability insurance may cover your small business for claims against:
- Damage to someone else’s property
- Personal injury to someone not employed by you
Examples of small business public liability insurance claims are:
- Slips, trips and falls to someone not employed by you
- Damage to the equipment or personal belongings of someone not employed by you
- A falling or moving tool or building material causes damage to someone else’s property or someone not employed by you
In the above situations your business may be legally responsible for the claim. To cover your small business against potential public liability insurance claims, talk to your SMART Business Insurance Specialist on 1300 542 573.
What claim costs may public liability insurance cover?
If your small business has a suitable public liability insurance policy for your business activities the following claim costs may be covered.
In the case of damage to someone else’s property:
- Pay for the repair of damaged property
- Pay for the replacement of ruined or lost property
In the case of personal injury to someone not employed by you:
- Some medical expenses for the injured person.
- Legal fees; including court costs and settlements
- Damages awarded against you if your business is found liable
Does your sub -contracting or small business need Public Liability Insurance?
In some parts of Australia , for some occupations public liability insurance can be compulsory. Examples are plumbers in Victoria, and electricians in Queensland and Tasmania..
Also in the building trade throughout Australia many worksites will not let any of their subcontractors on their worksite without a Certificate of Currency . That is proof public liability insurance has been paid, and is in force.
Whether it is compulsory or not public liability insurance is recommended for all small businesses, including sub –contractors, whose activities take place in public, who want to protect themselves and their assets.
Accidents happen in business all the time and claims for damage to someone else’s property and personal injury can be very expensive.
Even if the accident is not your fault you may need to pay lawyers to defend you. Have you budgeted for a legal bill of over $10,000 this year? Why spend large amounts of your own or your businesses’ money defending yourself, or put your business and personal assets at risk, when for a relatively small amount you can protect yourself and your business with public liability insurance?
You may be able to protect yourself, your business partners and staff today with an affordable and suitable public liability for your business activities by calling 1300 542 573 and talking with a friendly SMART business insurance broker.
1300 542 573
Important information about public liability for subcontractors and trades:
- In Australia sub-contractors and trades are responsible for their own actions on a worksite.
- If you cause property damage or personal injury to another person you will be liable for financial damages, legal defence costs and other charges
- Every day Slip-and-fall accidents may cost your small businesses well over $10,000
Common sense tips for sub-contractors and small business on how to avoid possible public liability claims
At your premises :
- Keep walk ways and corridors clear. Remove any “overflow “ storage like old signage, boards, and filing boxes. Are there any computer cords , masking tape or ripped carpet on the floor someone could trip over ?
- At worksites: Remove ladders, wheel barrows and tools from the worksite straight after using them. Clean up all excess materials from the site. Fence off any potentially dangerous areas.
- If possible avoid possession of someone else’s property. If you “scratch it “, your business can expect to pay for it.
Important facts for small business owners to know about public liability insurance
Typically a public liability policy will only respond if the incident occurs within the period of insurance.
Each insurance policy is different and includes exclusions that are not covered by public liability insurance.
These are some of things that are generally excluded from public liability insurance policies:
- Professional errors.
- Personal injury to you and your employees. (For information on income protection and life insurance click here or workers compensation click here)
- Damage to your business property. (For information on commercial property insurance click here)
- Professional advice. (For information on professional indemnity insurance click here)
- A vehicle is involved (For information on commercial vehicle insurance click here)
- The internet or customer data is involved (For information on cyber insurance click here)
- Employee relations, OH & S and discrimination (For information on management liability insurance click here)
- Product liability (For information on product liability insurance click here)
Protection or covers for some of the above business risks can be packaged and purchased together . In Australia many trades and small businesses can purchase public liability together.
For professional consultants public and professional indemnity insurance can be packaged and purchased together.
Even commercial property and public liability insurance can be combined together in what is call a “business pack “
Its important you talk to insurance broker and discuss your activities and risks and find cover that is suitable and affordable.
Call 1300 542 573 and talk with a friendly SMART business insurance broker about packaging multiple insurance covers for the risks your business faces and SAVE.
1300 542 573
What small business owners are not covered by with public liability insurance
While the business risks above are not covered by a public liability insurance only policy thay can typically be covered ina combined policy with public liability or a stamd alone policy.
There are however some risks that insurance companies generally do not cover. Just some of these risks are incidents in relation to fraud, poor workmanship, contractual liability ,exposure to hazardous materials ,and acts of war and terror.
A SMART business insurance broker can help you understand what you may be covered for and what you won’t be covered for.
To have s SMART chat about public liability insurance ; get costs or a quote call 1300 542 573 or email email@example.com
Public liability insurance cost?
If your business is considering public liability insurance, your SMART Business Insurance Specialist can talk to you about the cost of taking out public liability insurance.
The cost will depend on a variety of factors related to your business.
The cost of public liability insurance for your business depends on a number of key factors including:
- The nature and scope of your business
- Your business turnover and size
- Amount of insurance cover your business needs
Please note: While cheap Public Liability Insurance can seem attractive on the surface it is important to ensure the policy covers you for the business activities you undertake and the insurance policy and company will respond as intended when there is a claim.
Affordable and suitable public liability insurance quotes for small business
When it comes to Public liability insurance in Australia SMART Business Insurance provides sole traders, contractors and business owners with online ease and simplicity combined with friendly service.