5 reasons you need public liability insurance
It's estimated that of the 2,171,544 of actively trading businesses in Australia, 1 million of those are sole traders (not paying PAYG). These sole traders face risk while working with the public.
In Australia in 2016, there were 300-000 personal injury claims. A large number of these claims are covered by workers compensation insurance. Those workers compensation insurers will take legal action to recover the money paid.
If you or an employee of yours was responsible for the injury to a third party, your business would be held liable.
Personal injury claims are not restricted to medical needs it also covers ongoing needs, Loss of Earnings, Pain and Suffering In 2012–13, work-related injury and disease cost the Australian economy $61.8 billion, representing 4.1% of GDP.
2. Damage to Property is Expensive
You need public liability insurance because as Insure 247 explains the average public liability third-party claim for property damage in the last 12 month was $2800*, some as small as broken windows $550 and as large as $200,000 for water damage. On average it takes 42 days for public liability insurers to pay the claims.
3. Public Liability Insurance Makes Economic Sense
According to Insure 247, for small to medium business with 1 or 2 employees operating as a trades person or a professional risk, annual public liability insurance premiums should range between +$500-$1000, and then in the event of a claim, there will be an excess payable (Normally around $500).
4. It may be required to work
Government contracts, worksite health and safety and some licensing and industry regulator will require you to have a current public liability policy. Some may also need consumer protection insurance.
5. Consider your risk?
Do you carry stock owned by someone else? Does your business operate around the public? Could you afford a personal injury or property damage claim without insurance?
If you are still unsure, talk to our team on 1300 046 787, to discuss your requirement.
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Please note that any advice given has been provided without taking into account your objectives, financial situation or needs. It is also based on information we have obtained from you. You must ensure the information is accurate and complete. Otherwise, this advice may be based on the inaccurate or incomplete information. You should consider whether the advice is appropriate in light of your objectives, financial situation, and needs
Sources: 8165.0 - Counts of Australian Businesses, *Insure 247 Claims Statistics May 2016 -April 2016, +Depended on Turnover and other underwriting criteria,