What is a Hot work policy exclusion on my public liability policy?

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What is a Hot work policy exclusion on my public liability policy?

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What is a hot work policy exclusion on my public liability policy?

A hot work policy exclusion on a public liability insurance policy in Australia is a clause that excludes coverage for any damage or liability arising from hot work activities. Hot work activities refer to any work involving heat or flame, such as welding, soldering, cutting, or brazing.

The exclusion means that if an incident or accident occurs during hot work activities and results in property damage, bodily injury, or any other liability, the insurance policy will not cover the damages or liability costs.

It’s important to note that hot work policy exclusions are common in public liability insurance policies in Australia and are typically included to reduce the insurer’s risk exposure to potentially high-risk activities. As such, businesses need to understand any policy exclusions and ensure that they have appropriate safety measures to mitigate any potential risks associated with hot work activities.

Does your occupation involve hot work?


If you do hot work like flame cutting, flame heating, arc or gas welding, metal grinding or any similar operation in which welding, metal grinding or cutting equipment is used, except where such use is carried out in strict compliance with all relevant statutes and Australian Standards 1674.1 and 1674.2 (or any subsequent amendments), resulting claims may be excluded.

How can you reduce liability arising from hot work activities?

You can take several steps to reduce the liability arising from hot work activities, including:

  • Conducting a risk assessment: Tradies should conduct a risk assessment before starting any hot work activities to identify potential hazards and implement appropriate safety measures.
  • Using appropriate personal protective equipment (PPE): Tradies should wear appropriate PPE, such as welding helmets, gloves, and protective clothing, to protect themselves from heat and flame.
  • Having a fire safety plan: Tradies should have a fire safety plan that outlines emergency procedures and evacuation routes in case of a fire or other emergency.
  • Properly training employees: All employees involved in hot work activities should be trained on safety procedures, including fire extinguishers and other safety equipment.
  • Maintaining equipment: Equipment used for hot work activities should be regularly inspected to ensure it is in good working order and doesn’t pose a safety hazard.
  • Ensuring adequate ventilation: Adequate ventilation is essential during hot work activities to prevent the buildup of combustible gases or fumes that could lead to a fire or explosion.
  • Obtaining appropriate insurance coverage: Tradies should ensure that they have appropriate insurance coverage, including public liability insurance, to protect themselves from liability in case of property damage or bodily injury arising from hot work activities.

By implementing these safety measures, Tradies can reduce the risk of liability arising from hot work activities and ensure a safe work environment for themselves and their employees.

Publicliabilitycomparison.com.au by Insure 247 Ausure Insurance Brokers Pty Ltd T/as Insure 247 Authorised Representative of Ausure Pty Ltd AFSL 238433. 
General Advice Warning: Please be aware that any advice that may have been given or implied is general advice only. We have not taken into consideration your individual needs, objectives or financial requirements. Before deciding to purchase a financial product, you should consider the appropriate Product Disclosure Statement to ensure the product is suitable for your needs. 

Why Should your Business Consider Public Liability Insurance?

Why should your business consider Public Liability Insurance?

Public Liability Insurance protects a business from financial loss in the event of a claim made by a third party for bodily injury or property damage arising from the business operations. This insurance provides coverage for legal defence costs and any compensation payments that may be awarded, helping to safeguard a business against potentially large and devastating financial losses. By having Public Liability Insurance in place, a business can demonstrate its commitment to health and safety, as well as provide peace of mind to customers, employees, and other stakeholders.

What about Home Based Businesses?

Even if it’s a home-based business where you have interaction with the public in the event of being sued the legal cost and any payout is potentially very costly.

What’s Covered by a Public Liability Policy?

You might be protected from the following:

  • Legal fees paid in the defence or resolution of a claim
  • Protect any third parties who might have been working on your behalf at the time of the incident.
  • Loss or damage to things under your custody or control but not ones that you own
  • any loss or harm to another person’s property sustained while carrying out your service
  • first assistance costs incurred at the scene of an accident
  • Injury to third parties that get hurt while visiting your premises

 

What Are a Few Situations That Public Liability Doesn’t Protect Me From?

  • Responsibility of the employer for wounded employees (worker’s compensation)
  • products for aircraft
  • Asbestos
  • Punitive losses (damages awarded where a judge believes you acted so badly that extra damages are awarded)
  • Paid-in-full damages
  • Gradual pollution
  • Products recall
  • Contractual obligations that you would not be liable for under common law (that is if you enter into a contract which assumes the liability of others, if the law would not consider this your liability had you not signed the contract)

Depending on the policy wording, if you are unsure speak to one of the team or your local broker

Public liability insurance claims made about your company can be expensive, disrupt operations, and harm your well-earned reputation. Make sure you have adequate public liability insurance to protect yourself from these hazards.

How Much Public Liability Insurance Does My Business Need?

What is Public Liability Cover For?

You run the risk of facing a third-party claim for either personal injury or property damage if customers come to your place of business or if your workers go to clients’ locations.

How much public liability insurance does an Australian Business need?

Insurers often offer $5 million, $10 million, and $20 million dollar cover options in Australia. It depends depend on your occupation, risk exposure, and regulatory requirements, but it’s a necessary protection for ALL enterprises, including small firms, sole proprietorships, and corporate organisations, says Adam Sloan, broker at Ausure Insurance Brokers and owner of Publicliabilitycomparison.com.au.

Some insurers offer a $50 million policy; however, it is not a popular choice for the majority of small and medium-sized firms. Nevertheless, it’s crucial to keep in mind that if you do business with local, federal governments or international contracts which may demand this greater level of coverage.

Public liability comparison

Public Liability Insurance is not required by law

The Australian Government explains* that although it is not needed by law to have public liability insurance, “If you own a business, you may be liable for damages or injuries to another person or their property.” Although liability insurance is typically optional, it is generally advised for firms in all industries due to the unpredictable and possibly very expensive nature of lawsuits. Your business and you are covered by public liability insurance from the financial danger of being held accountable for negligence. Negligence is defined as “damage that is reasonably foreseeable.”

Compare Policies for Your Business

The different levels of coverage, wordings, exclusions, and inclusions that insurers offer will depend on the risk and the occupations that they prefer. Throughout the year, some insurers will run promotions. Additionally, if you have a long history with an insurer and have never filed a claim, you should think about asking for a discount. (However, unlike home insurance, they don’t provide claims bonuses.).

If you are still unsure speak to a broker or talk to our team on 07 5631 6040, to discuss your requirement.

Sources:

www.business.gov.au

https://publicliabilitycomparison.com.au/the-problem-with-cheap-public-liability-insurance/

The Problem With Cheap Public Liability Insurance

When finding public liability insurance policies, there is a trap that the insurers don’t tell you, when they offer you a cheap premium.

There are some obvious advantages of going with the cheapest insurance: you’ll save money in the short term, and while saving money is a strong draw for most people, insurance helps protect you financially over the long term and allows you to recover from a major disaster. It’s what the insurers don’t tell you that may result in your carrying the risk when choosing a cheap policy.

“Not all public liability insurance policies are the same, insurers are obliged to tell you what they cover – not what they have left out. Insurer’s wording may include reduced cover option or simply no cover for common claim scenarios”

There are potential disadvantages of choosing the cheapest insurance policies, including:

  • Less coverage
  • Higher Excess
  • Lower claims assistance and broker support
  • Rates more likely to increase at renewal

Before choosing an insurance policy, you should understand what’s covered and what isn’t.

Less coverage

Do you know exactly what you’re covered for? In the event that you need to make a claim, will it be rejected because you didn’t read the fine print of your policy? If you look after a customer’s goods, it is common for insurers to exclude Care Custody and Control extension, some insurers may describe this as goods in physical and legal control. Care Custody and Control exclusion commonly applies to occupations such couriers, transport companies, mechanics and even pay TV installers

Higher Excess

It’s when a claim happens that you truly appreciate the value of a public liability policy, however, some insurers will have a high excess for different claim scenarios. Check prior to purchasing the policy, the excess, and compare other insurers to see if it is a common excess.

Lower claims assistance and broker support

What’s the point of insurance if it steals your peace of mind rather than gives you peace of mind? Customers are in very safe hands when it comes to Ausure brokers policies, we have a dedicated claims team and over 20 years of insurer relationships.

“Cheap” insurances often come with poor claims ratings, long claim settlement times, and little to no support, essentially you become another cog in the machine. While working with a broker may cost a fraction more to start with, come claim, it means less stress for you as you can hand things over to the professionals.

An Ausure broker has the industry knowledge and connections to ensure that you get the right level of cover to protect your business at a competitive price.

Public Liability Insurance Rates more likely to increase at renewal

To get you in the door, or on the books, budget insurers will often offer lower rates for a new business. The cheap policy is often only cheap for the introductory period and then at renewal, your rate increases substantially. You may also find, that no claims discounts are not offered on cheaper policies, and because the policy has less broker support, it is highly unlikely you will be able to negotiate with your insurer for a better value premium.

While we are currently seeing increases in premiums as a result of significant events that have occurred over the last 12 – 18 months. EG, 2019/20 bush fire season, 2021 storms and the current COVID-19 situation is also creating a lot of uncertainty across the globe and not just locally here in Australia. All types of policies are being affected, from personal to all styles of business policies regardless of the claims that have been made

When you get your public liability quote, you will be asked what level of cover you require. Cover generally offered is either $5, 10, or $20 million. $5 Million will normally be the cheapest, however, there is often a marginal difference between $5 and $10 Million dollars cover, and often, $5 million may not be enough to satisfy a government or business tender process

Expanded article from : https://publicliabilitycomparison.com.au/problem-cheap-public-liability-insurance/