Do I Need Public and Products Liability Insurance After I Cease Trading?
When your business ceases to trade, what insurance should be maintained?
Remember just because a business closes and/or ceases to trade, it does not mean it’s exposure to risk also ends.
The business and directors and shareholders may still have a liability exposure in relation to products sold, serviced, repaired, installed, imported or manufactured.
Public and Products Liability insurance policies are triggered by the occurrence of personal injury and/or property damage during the period of insurance. If you cancel the policy and a claim is made against you by a person who suffers personal injury and/or property damage after the date of cancellation of the policy, you will not be able to claim under the policy. It is irrelevant when the product was sold or the allegedly defective work was done.
In a recent claim, a kitchen manufacturer/installer installed a wall cabinet in 2013. In 2016, it fell from the wall damaging the cabinet as well as the kitchen benchtop it fell onto.
The insured had some months ago “closed” the business and their policies were cancelled. As a result, there was no cover in place when the damage occurred.
Although run-off cover is more commonly required for professional liability exposures, it’s not unusual for it to be contractually required for public and products liability risks.
If you are still unsure, talk to our team on 1300 046 787, to discuss your requirement.
Public and Products Liability Insurance Quotes
PUBLIC AND PRODUCTS LIABILITY INSURANCE COMPARED
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
Compare to Save Money On Your Public Liability Policy
Compare And Save Money On Your Public Liability Policy
Here are five ways to compare amd save money on your public liability insurance policy.
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Insurers will offer different levels of cover, wordings, exclusions and inclusions, they may also prefer a certain risk and occupations.
Some insurers will offer specials at different times of the year.
Also if you have been with an insurer for any length of time you should consider asking for a discount, especially if you haven't made any claims. (However unlike house insurance, they don't offer any claims bonuses)
Pay Annually
The convenience of paying your public liability insurance by the month will come at a cost with most funding companies and insurers charging extra for the convenience, normally in the form of fees and charges.
Annual payment for your insurance policy is also tax deductible
Choose the right level of cover
Steve Sloan a broker from Insure 247 explains that the right level of cover is the first place to start. "If your business is dealing with the general public 5 million dollars cover may be adequate, however, if it's business to business you may need to have $10 million dollars cover, if you deal with state, federal or local government they may require a minimum of $20 million. However, often the difference between 5 and 20 million dollars, may only be a few hundred dollars.
Reduce Risk
Where you show your insurer that you are reducing your risk it may reflect in the premiums, this may be something as simple as adhering to the Australian standards for certain business activities or if you are an importer and you can show that the manufacturing processes and procedures are in place this may also reflect on your premiums.
If you use subcontractors and you can also show that the subcontractors have their own insurance this may also have a benefit that reflects in your premium.
If you are still unsure, talk to our team on 1300 046 787, to discuss your requirement.
Public and Products Liability Insurance Quotes
PUBLIC AND PRODUCTS LIABILITY INSURANCE COMPARED
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
Sole Trader To A Company Does my Policy Cover Me?
Public liability insurance for Sole Traders
Generally, public liability insurance policies will be in a company or individuals name.
The individual will often be a sole trader or be considered a small business. As these businesses grow, can their policy grow with them?
Can you transfer a policy from a Sole Trader to a new Pty Ltd Company as your business Grows?
Yes, according to Steve Sloan a broker with Insure 247.
As long as the trading activities, turnover and staff levels of the new entity are the same as your existing activities, brokers can arrange to transfer the policy into the Pty Ltd Company name.
What information will your insurer need when changing from a Sole Trader?
- The Company Name
- The ABN
- The Address
- The Trading Activites
- Has any director been bankrupt or had a criminal conviction?
- Sometimes they will also ask for the directors years of experience?
More Information
If you are still unsure, talk to our team on 1300 046 787, to discuss your requirement.
PUBLIC AND PRODUCTS LIABILITY INSURANCE COMPARED
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