Business discussions that could cost your business
In a recent case in the New South Wales District Court, Kmart Australia was made to pay compensation when an $8 plastic domestic use only chair collapsed when I client sat on it.
Awarded more than $300,000
According to the SMH*
Ms Lewis suffered permanent damage to her lower back, right buttock, thigh, and knee among other injuries.
She was awarded more than $300,000 in damages.
In making her decision to award Ms Lewis the sum, Judge Gibson noted that Kmart had breached its duty of care.
"To keep the photo lab (and its income) flowing, Kmart and its staff allowed the development of a haphazard system of customers taking chairs for sale in other departments (itself a breach of store policy) for use in circumstances where those chairs were unsuitable to the point of being dangerous," she said.
"I am satisfied that the plaintiff has established breach of duty of care. The defendant's failure to provide adequate seating for its customers in the photo lab, training for its staff and regulation of equipment use all play a role in relation to the circumstances of the accident."
Public Liability Insurance Offers Protection
Broker Stephen Sloan explains "Public Liability Insurance cover can protect the business owner where it is found to be negligent. It will also offer some protection for the high legal cost of defending such events.
Going without public liability cover may save you money spent on premiums, however in the event of a claim that saving may cost you your business.
Does Your Business Have A Plan?
It is not that anyone at Kmart intended for the client to get hurt and at no stage did the management of Kmart have any actual involvement in the actions that lead to the injury, however, they do need a system for training for their staff and the regulation of equipment, does your business do that?
It's also worth considering a risk mitigation when purchasing items used by the public or your staff, consider the use and consider is it appropriate for the intended use.
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
Source *Sydney Morning Herald