Public Liability Insurance, What’s Not Covered?

Public liability insurance does a great job of protecting your business against injury claims, loss or damage claims made by a third party as a result of your negligence, and with most policies that will extend to cover your products (if Broadford or Product Liability is included)

However, there are several common business scenarios where the policy will not cover you.

Faulty workmanship

Property damage claims make up a large percentage of public liability claims, but where that damage is caused by your faulty workmanship, it’s likely to be declined. Some insurers will offer this as an extension to cover for some trades but speak to your broker if you feel that this is a large exposure for your business.

Injury or damage to you or your property

If you as the business owner sole trader or worker are injured as a result of your negligence, your public liability insurance will not respond, this also goes for loss or damage to your property the policy will only cover loss to a third party.
There are a number of income protection, personal accident, or workers compensation options to protect you and your workers, and general property cover may cover for loss or damage to your property, your broker can assist with assessing your risk.

Loss or damage as a result of your professional advice

Doctors, lawyers and even plumbers can cause financial loss as a result of the professional advice they give, this loss is generally excluded in most public liability policies and you or your business may need to consider professional indemnity insurance.

Australian Business Insurance

Damage or injury as a result of motor vehicle claims

Most registered vehicles, car insurance, truck insurance will include some form of third party liability cover, however, your businesses public liability policy will not cover damage or injury as a result of motor vehicle claims.

Still not sure if it’s covered?

Speak to our brokers about the risks your business face, have a claim scenario? Avoid having your claim declined by an insurer by speaking to our brokers first, as you will need to declare the declined claim every time you apply for insurance and may result in that insurance being refused.


General Advice Warning

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

Does Public Liability Cover Faulty Workmanship?

Public liability insurance protects you and your business against the financial risk of being found liable for negligence. This may be for property damage or personal injury to a third party. However if that loss is the result of faulty workmanship it may result in your claim being declined.

Insurers Wording

One insurers wording excludes claims “for the cost of performing, completing, correcting or improving any work undertaken by You.”

Some insurers do offer Faulty Workmanship Insurance, and others also will allow you to add as an extra to your business insurance or public liability policy.

Still unsure, speak to a specialist, get them to review your potential risks and possible mitigation.

Is Public Liability Insurance Compulsory in Australia?

Is Public Liability Insurance Compulsory in Australia?

Public Liability Insurance is not required by law

Public Liability Insurance is not required by law in Australia, however, the Australian Government through www.business.gov.au explain “If you own a business, you may be liable for damages or injuries to another person or property. Though 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. Public liability insurance protects you and your business against the financial risk of being found liable for negligence. Negligence is causing reasonably foreseeable harm”.

 

 

Public Liability Carpenters

It may be compulsory for your occupations license

Public Liability Insurance may be compulsory for your occupations license, such as builders, plumbers and electricians in some states, check with your industries licencing authority in your state.

It may be required to enter a work site or third party premises

You may be asked to show a Public Liability Insurance policy before entering a work site or third party premises including offices. Federal and State government departments,  local governments and a hospital will almost certainly request proof of insurance prior to work commencing, and that will not be restricted to trades it can also include consultants and visiting professionals.

If you need more information about your Public Liability needs, call the team.

 

 

Publiclaibiltycomparison.com.au is brought to you by Insure 247 to assist Australian business compare Public Liability Insurance quotes from leading Australian Business Insurers :

 

Your Quotes will come from specialist licensed to act on your behalf to find you a number of options with leading Australian insurers

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If you are still unsure, talk to our team on 1300 046 787, to discuss your requirement.

 

Original Article shared 2016

Public and Products Liability Insurance Quotes

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

Liability Claims Have The Potential to Put You Out Of Business

According to QBE Insurance, 87% of small business owners agree that a liability claim has the potential to put them out of business, cause them to lose revenue, or dry up cash flow.

Yet despite these risky stats, 62 per cent of SMEs said they are unlikely to have the right insurance in place to protect their business.

Public Liability Claims

And an analysis of QBE claims data revealed that roofing services was the highest claiming sector for liability claims in the past three years2.

1Pureprofile research study of 609 Australian SMEs completed for QBE Insurance during April 2019
2QBE liability claims data 2015 to April 2019, based on the frequency of claims

Public Liability for small and medium businesses

If you are a small or medium-sized business with up to $20 million turnover and property assets valued under $10 million, our business packages policy is designed to protect businesses like yours.

What is public liability insurance?

If clients visit your business or your employees visit client sites you are at risk of a third party claim, that claim may be for personal injury or property damage.

Why do Australian Businesses need the cover?

Public liability insurance protects you and your business against the financial risk of being found liable to a third party for death or injury, loss or damage to property or economic loss resulting from your negligence.

PUBLIC AND PRODUCTS LIABILITY INSURANCE COMPARED

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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 inaccurate or incomplete information. You should consider whether the advice is appropriate in light of your objectives, financial situation and needs

Public Liability for Restaurants

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Liability Claims

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