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

What’s Not Covered By Your Public Liability Insurance Policy

What's Not Covered By Public Liability Insurance Policy

Not everything is included in a public liability insurance policy, so what's not covered? The following things are 'generally' excluded by most insurers:

  • Anything relating to asbestos
  • Things involving aircraft
  • Worker’s compensation
  • Product recalls
  • Punitive or liquidated damages — this is where your actions are deemed by a judge to have been so poor that you are ordered to pay extra damages
  • Faulty workmanship

You should also bear in mind that public liability policies also have some limitations in terms of how much they will pay out — there is typically a limit to how much can be paid out per claim, as well as a limit on the total amount that can be paid out under a policy as a whole.

What is public liability insurance?

What are common limitations in public liability policies

  • Your policy may restrict the height and location you work
  • It may exclude some business activities, like high-pressure cleaning
  • Provision of Advice
  • Heat work (welding and thermal cutting)
  • Underground Services
  • Hazardous Workplace and Sites Exclusion
  • Faulty workmanship

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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 inaccurate or incomplete information. You should consider whether the advice is appropriate in light of your objectives, financial situation and needs. Please read the Product Disclosure Statement and contact us if you require any clarification.

Sources

https://knowrisk.com.au Insure247

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