Public liability insurance is an older version of general liability insurance which is a sort of business insurance. Public liability insurance helps cover liability claims brought by members of the public, including clients, delivery staff, and guests, against your small business.
Although they are comparable, general liability insurance often provides more coverage. Many insurance providers advise business owners to obtain a commercial general liability insurance plan rather than providing public liability insurance anymore.
Difference between Public liability and employers’ liability
Business insurance policies that can reimburse your company in the event that an injury claim is filed against it include employers’ liability insurance and public liability insurance. The distinction is that employers’ liability insurance covers damage claims made by employees, whereas public liability insurance covers claims made by a third party (i.e., a member of the public such as a client, customer, supplier, or bystander).
It’s important to understand that paying for injuries sustained on the job for current or past employees is not covered by public liability insurance. Employers are legally required to obtain employers’ liability insurance, which covers the majority of enterprises with employees, to reduce this particular risk. The law includes temporary and part-time workers, as well as some subcontractors who are classified as employees.
Read more: What is the average payout for Medical Negligence in Australia?
What is Public liability cover?
Public liability insurance protects your business against claims filed by clients, customers, contractors, and other members of the public.
What is employers’ liability cover?
Employers’ liability insurance protects your company against lawsuits brought by staff members for diseases and injuries they get while working.
Now that we’ve clarified the distinction between public liability insurance and employers’ liability insurance, let’s delve deeper into what public liability insurance entails and what it covers.
What does public liability insurance cover?
Public liability insurance provides protection for various risks associated with your business’s interactions with the public. It’s crucial to review your policy details and consult the Product Disclosure Statement (PDS) or your insurer if you have any uncertainties.
Here’s a breakdown of typical Public Liability Insurance coverage:
- Personal Injury to Third Parties: If your business frequently engages with clients, suppliers, or the general public, there is always a risk of accidental injury claims. For instance, a client might trip over an item in a store, or a beauty treatment could cause an adverse reaction. Even unintended incidents can significantly affect your business, making this coverage essential.
- Damage to Third-Party Property: This covers situations where your business activities accidentally damage someone else’s property. Examples include spilling food on a client’s clothing or causing damage while performing a service, such as a tradesperson accidentally bursting a pipe. This protection helps manage the financial impact of such accidents.
- Legal and Defence Costs: Public liability insurance also covers legal fees and defence costs related to covered claims. These expenses can escalate quickly, especially if a claim is protracted, so having this coverage helps manage potential financial burdens.
What are three different types of Public liability insurance?
Public Liability insurance
Liability insurance comes in several forms, each catering to different needs and risks. Public liability insurance covers a range of entities—individuals, businesses, events, contractors, or even community buildings—against the financial repercussions of legal actions arising from negligence that results in death, injury, property damage, or economic loss. This type of insurance is crucial for safeguarding against the costs associated with claims from the public.
Professional indemnity insurance
Professional indemnity insurance is tailored for businesses that offer advice or specialist services. This insurance provides protection against claims from clients who allege that the professional services or advice provided led to financial losses. It’s essential for professionals to have this coverage to manage the risks associated with their expert advice or services.
Product liability insurance
Product liability insurance is specifically designed for those involved in manufacturing, selling, distributing, or importing products. It protects against claims related to injuries or damage caused by products. This insurance is vital because it covers the costs associated with legal actions taken by individuals or businesses who believe they have been harmed by a product, often without needing to prove negligence or intent to cause harm.
Need Help with Public Liability Insurance Claims?
United Legal Canberra is here to assist your business with public liability insurance. Our services cover liability claims brought by members of the public, including clients, delivery staff, and guests.
Contact our representative today for a free consultation. We will review your insurance needs and take prompt action on your behalf. For more information, call us at (02) 6295 2283 or email us at admin@unitedlegal.com.au. Scheduling an appointment takes just a few minutes.
