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

Public Liability Insurance Claims Checklist

Public Liability Insurance Claims Checklist

What to do in the event of a Public Liability Insurance Claim?
Public liability insurance is there to protect your business if your business activities damage property or injure someone.

But unlike motor or home insurance, there must be a third-party letter of demand to trigger the claim on the policy.

This can be in the form of an email from the client or in more serious cases a letter from the client’s solicitor.

Public Liability Insurance Claim Check List

First things first

Contact your broker, they have more experience in dealing with complex claims and generally get better results than if you go directly to your insurer. They will be able to assist with the likely course of the claim and better explain the steps need.

Details

Provide the broker/insurer with a third-party letter of demand.
Provide details of the events that caused the claim, including locations, dates, times and the personnel involved.

Where possible provide photos of the loss.

Property Loss

What is the cost of repair, has the work been completed, if so by whom, do you have a copy of the repair invoice?
If Subcontractors are involved

Provide details of any sub-contractor involvement, do they have public liability insurance, and if so with whom, could the loss be attributed to the subcontractor?

Personal Injury Claim

What were the clients injuries? What is the prognosis, has the client detailed the loss of revenue and out of pocket expenses?

Death Claims

Claims that involve death can be traumatic for all involved. Its best to see early advice as each state will have different agencies that may be involved, and culpability can take months to settle, its best to involve your broker, insurer, and lawyer as soon as possible.

Settlement

In our experience simple property claims can be settled in a relatively short period (currently 42 days), however complex property claims, death or injury can take years, you must maintain the policy during this period, ensuring that the premiums are kept up to date.

The average public liability claim is generally only a few thousand dollars, but you have cover for up to the policy cover level, $5 million, $10 million or $20 million, you will have to pay the excess prior to the insurer settling your claim, and some insurers will require a release letter to be signed by you the insured and the third party.

If you have any questions, speak to one of our team, or contact your broker.

 

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