How much Liability Insurance Do You Need?
Public Liability Insurance is for claims made against your business because its damaged someone’s property or accidentally injured a person. You will need it if your business goes out to see clients or they visit you, or you sell products that may also result in property damage or injury to a third party. Liability Insurance is an essential cover for ALL businesses, including small businesses, Sole traders and corporate entities.
In Australia, insurers generally offer $5 Million, $10 million and $20 million dollar cover options, but how much public liability insurance do you need? The correct level of cover required will depend on your occupation, risk exposure, and legal requirements.
$5 Million Cover
$5 million liability cover will offer minimal protection. If you operate a business with little exposure to the public it may be sufficient for you. However, most insurance brokers would recommend a minimum of $10 Million liability cover as Australia has become more and more litigious. While $5 Million may seem appealing because of the reduced premium, it is becoming less appropriate for businesses & will often not be enough to cover claims – particularly if they relate to personal injury.
$10 Million Cover
$10 million Liability cover will offer moderate protection and suit most businesses as a starting point. Particularly suitable for small businesses and sole traders.
$20 Million Cover
$20 million is a more comprehensive cover. Businesses that have a high exposure to public, or companies that enter a local, state or federal government contract or work on one of their facilities should be selecting the $20 million Liability cover.
$50 Million Cover
While $50 Million is not a common option for most small and medium businesses, some international contracts require this higher amount of coverage if you do business with them.
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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.
