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

Can I get a monthly public liability insurance policy?

How do I get a monthly public liability insurance policy?

Steve Sloan, a broker with Insure 247 explains that a monthly public liability insurance policy is not a good option for the insurer or the insured;

“Most policies are created to protect a client during the insured period or if a claim arises from the insured activities within that period, if you take a short-term cover you may lose that protections.

Most insurers offer you an annual policy with cover for that annual period after the expiry date of the policy for unknown claims.

Business people who seek a short-term policy are generally seeking cover because they are being asked to get that cover by a head contractor as it is a condition of their insurance, or perhaps a government tender requires it. If you only take insurance for this period you run the risk of costly claim after you have finished the work and the head contractor can a most like will pursue your business for the debt. And let’s be honest there are not many businesses that can afford a multi-million dollar claim.

let’s be honest there are not many businesses that can afford a multi-million dollar claim

What is the alternative?

Most brokers and some direct insurers will, however, offer instalment options, sometimes through finance companies, these third parties generally make their money on the transaction by charging interest and dividing the total amount over monthly payments, this does not however mean you have a monthly policy.

If you cancel the policy, especially in the first few month, you can lose fees and charges that may result in a shortfall or for you to pay a larger some to cancel the policy. So before you enter into an instalment option check to see the cancellation fees, charges and total cost of the annual policy, but remember if you are planning to cancel you are doing so against the broker’s advice.

More information

Sole Trader To A Company Does my Policy Cover Me?

The chairs that could cost your business three hundred thousand dollars

 

If you are still unsure, talk to our team on 1300 046 787, to discuss your requirement.

 

PUBLIC AND PRODUCTS LIABILITY INSURANCE COMPARED

Compare Public Liability Insurance

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

Hairdressers

Public liability insurance for Hairdressers

Based on $5 Million Cover with 1 employee up to $100,000 income, quotes from $401 to $990 from Allianz, AIG, Calibre, CGU, Protecsure, Vero and Zurich

Public Liability Insurance Quotes

COMPARE PUBLIC LIABILITY INSURANCE QUOTES FROM LEADING AUSTRALIAN INSURERS FOR Couriers

Complete the form below or call us on 1300 046 787 –  13000 Insure

Once completed we will get quotes from our insurer panel to find the right policy at the right price. Australia wide coverage



 

PUBLIC LIABILITY INSURERS USED INCLUDE:

AIG Public Liability Insurance Quote Calibre InsuranceCGU Public Liability Insurance  protecsure-logo

  Vero Public Liability Insurance  

Public Liability for Hairdressers

 

Your quotes will come from the Insure 247 Team

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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

Publiclaibiltycomparison.com.au is brought to you by Insure 247 to assist Australian business compare Public Liability Insurance quotes from leading Australian Business Insurers :

Insure 247 Let's get you covered

The Insure 247 Team is here to Help with your business insurance needs, our team of specialist are experts in small to medium enterprise (SME) insurance. As well as your business needs the team can also look after you and your family’s needs. The Insure 247 Team has access to a network of insurers and specialist underwriters, and through our licensee Ausure and Steadfast access to all major insurance markets The Insure 247 Team is Gold Coast based but services a client base Australia wide

Insure 247 Pty Ltd ACN 612944215 an Authorised Representative of Ausure Pty Ltd ABN 94 096 971 854 AFSL 238433.

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