Are you looking to safeguard your business? Do you want to be covered when unexpected incidents occur in your place of business? Then stick glued to this article as we will walk you through everything about public liability insurance in Australia. Running a business open to the public can be susceptible to third-party accidents, bringing about high public liability claims. But when you have suitable coverage, it will save you from resulting costs due to accidents, and you will continue to be in business. Therefore, public liability insurance should be considered whether you are starting a new business or maintaining an existing one in Australia.
What is public liability insurance?
Public liability insurance protects your business/organization against claims resulting from accidents due to business happenings or activities and unintended property damage possessed or controlled by someone else. As a business owner, you are accountable for the security of people that come in contact with your business operations, be it your employees or members of the public. You must ensure you have the right coverage for unforeseen circumstances because an accident can occur at any time.
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The benefits of public liability insurance
Some of the benefits of public liability insurance are;
- It covers you and your business or organization from claims for damage or injury caused to a third party due to your business activities.
- Public liability insurance offers peace of mind for all kinds of businesses.
- Businesses with public liability insurance might avoid losing big contracts from a public or governmental organization because clients occasionally ask for proof of insurance.
- Public Liability Insurance can be valuable for any business related to the public, directly or indirectly.
Who needs public liability insurance in Australia?
Public Liability Insurance can be essential for any business that interacts with members of the public, including sole traders, subcontractors, and retail sectors. Businesses that need public liability insurance in Australia are;
- Café owners and restaurateurs.
- Professionals such as a consultant.
List of things public liability insurance cover
The list of things covered by public liability insurance includes the following;
- Public liability insurance covers any loss or damages your business causes to third-party property
- it covers your legal liability for the physical loss, injury, or death of a third party
- Legal costs incurred in defending a covered claim
- Any compensation you’re required to pay due to a covered claim.
The Things Public Liability Insurance Doesn’t Cover
There are exceptions to what public liability covers. Here we have the list of things not covered by public liability insurance; they include the following;
- Your accountability for your injured workers.
- Punitive damages. The extra damages are given if a judge believes your behavior is inexcusable.
- Incidents relating to asbestos materials.
- Product recalls and withdrawals.
- Aircraft products
Is public liability insurance worth having?
Public Liability Insurance is for businesses that make contact with the members of the public. Public Liability Insurance is a strong defense for you and your business; it covers claims for physical loss or damage caused by your business operations; otherwise, you would have to pay for the claim personally or from your business, which can paralyze your business financially.
Businesses that deal with the general public are prone to different kinds of risk. If you don’t have public liability insurance, your business could be crippled financially due to claims against you for physical loss or damage caused by your business functions. To save the hard work and sweat of building your business, plan for the appropriate coverage to protect you during rainy days.