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.

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

What Is Limit of Indemnity?

What Is Limit of Indemnity?

In your public liability insurance policy it will refer to an Indemnity Period, what does it mean? What do you need to look for?

Public liability insurance protects individuals, businesses and organisations against the financial risk of being found liable to a third party for death or injury, loss or damage of property or pure economic loss resulting from negligence by the insured.

In the Event of Claim

In the event of a successful claim your business is legally liable to pay as compensation for Personal Injury and/or Property Damage occurring within the Territorial Limits as a result of an Occurrence in connection with Your Business up to the Limit of Indemnity, generally 5, 10 or 20 Million dollars.

Limit of Indemnity

“Limit of Indemnity” means the amount(s) stated in the Schedule as the Limit of indemnity or any lesser limit shown in the Schedule of your insurance document. The Limit of Indemnity is inclusive of and not additional to any applicable Excess

 

Is public liability insurance a legal requirement?

Not for all businesses in Australia, but unless you can afford to pay for a multi million dollar claim, liability cover may be considered an essential item on your business budget. Even the Australian government Liability insurance urge businesses to seek the cover.

Read more about on the Australian Competition and Consumer Commission website.

  • See information about insurance in your state or territory.
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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 Insurance Does My Business Need It?

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Slippery When Wet $650000 Fine

 

 

How Much Public Liability Insurance Cover Should I Have?

How Much Public Liability Insurance Cover Should I Have?

How much cover do I need?

When you arranging your public liability insurance, one of the first things you will be asked to decide is how much cover should you have?

How much cover is available?

Most Australian insurers offer $5 Million, $10 Million and $20 Million dollars worth of cover,  some may even go as high $30 Million.

That seems like a lot of cover, but Steve Sloan from Insure 247 explains why it's so high and what to consider.

What does it cover?

Public liability insurance covers your business against claims of property damage or personal injury as a result of your business activities.  While most claims are for property damage and of a low value, they can be high, for instance in the case of a catastrophic loss like your business activities causing a fire.

Personal injury claims are far more complex but they can be more expensive in the long run, for example you maybe sued for the loss of future income of the claimants.

Consider this*

If your dealing with the public $5 Million is now the minimum offered, if your dealing business to business you should consider $10 Million and if you are dealing with local, state or federal government, shopping centres or mining companies they will generally ask for $20 Million.

If you are still unsure ask your broker or call the team on 1300 046 787

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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

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Why do I need public liability cover?

 

Public Liability Claim Scenarios

Public Liability Claim Scenarios

Public Liability Claim Scenarios fit into two areas 1) Personal Injury or 2) Property Damage.

In the past 12 months Insure 247 has processed a number of public liability property damage claims, these have included damaged scales by a cleaning business, broken shower glass by a plumber and broken windows by a lawn mowing contractor.

Personal injury claims are a little less common but tend to be a higher dollar value. Some insurers will offer a zero excess on personal injury claims.

In the event of a claim call your broker first because many, like Insure 247 will have a free claims assist service

If you are still unsure speak to a broker call 1300 046 787 13000 Insure

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