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Public Liability Insurance

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What is Public Liability Insurance?

Liability insurance in Australia is a type of coverage designed to protect individuals and businesses from the financial consequences of legal claims made against them. These claims can arise from injuries or damages that occur as a result of their actions or negligence. Liability insurance helps cover the costs of legal defence, settlements, and judgments, ensuring that the insured party does not bear the full financial burden of such incidents.

Public Liability Insurance

Understanding Public Liability Insurance

One of the most common forms of liability insurance in Australia is Public Liability Insurance. This insurance is essential for businesses, as it covers claims of personal injury or property damage that occur in connection with their operations. For example, if a customer slips and falls on a business’s premises or if a contractor accidentally damages a client’s property, Public Liability Insurance helps cover the resulting legal costs and compensation claims. This type of insurance is crucial for protecting businesses from potentially devastating financial losses and maintaining their reputation.

Another important type of liability insurance is Professional Indemnity Insurance. This is particularly relevant for professionals who provide advice or services, such as consultants, doctors, lawyers, and accountants. Professional Indemnity Insurance covers claims made against the insured for negligence, errors, or omissions in the performance of their professional duties. It helps cover legal costs and any damages awarded, providing peace of mind and financial security for professionals in various fields. Additionally, Employers’ Liability Insurance is mandatory in Australia, providing coverage for work-related injuries or illnesses sustained by employees, ensuring they receive appropriate compensation and support.

Does Using a Public Liability Insurance Broker Save Money?

Engaging the services of a Public Liability Insurance Broker can lead to significant savings. With access to over 160 insurers and underwriters, savings are almost guaranteed. Insurance brokers also possess extraordinary negotiating power, allowing them to secure further discounts from insurers.

Management Liability Insurance

Why You Should Choose Brindabella Insurance Brokers as Your Preferred Public Liability Insurance Broker

Engaging Brindabella Insurance Brokers as your preferred Public Liability Insurance Broker ensures that your business is adequately protected. We provide sound and reliable advice that you can trust.

We specialise in insurance across a wide range of industries, including construction, e-commerce, financial services, and manufacturing.

Brindabella Insurance Brokers are dedicated to building long-term relationships with all our clients and strive to respond to queries as quickly as possible. We handle all your insurance needs, allowing you to focus on what you do best—growing your business.

Public Liability Insurance Claim Example

The Insured booked a customer’s vehicle for service and minor diagnostics. The Insured took the vehicle for a test drive to listen for road noise, however, the insured left the wheel studs off the left wheel resulting in the vehicle turning over and crashing. The vehicle was deemed not worth repairing.

The claim was settled by the insurer for $44,378 with the third party, which included $34,445 for the vehicle and $9,933 for vehicle hire by the third party.

What Does Public Liability Insurance Cover?

A typical Public Liability policy covers:

  • Legal representation costs incurred during the settlement of a claim
  • Injury or damage to a third party caused by your business’ activities
  • Damage caused by your business to someone else’s property
  • Loss and damage of goods

What is Typically Not Covered?

Public Liability Insurance policies can protect your business from a wide range of circumstances, covering various business activities and different policy extensions. However, not all policies are created equal, and many contain standard and industry-specific exclusions that could leave your business exposed. Engaging us as your preferred Public Liability Insurance Broker ensures you are aware of these exclusions and properly protected.

Common Exclusions:

  • Deliberate Acts
  • Product Recall Costs
  • Injuries to Your Employees
  • Professional Advice
  • Aircraft Products
  • Asbestos Liability
  • Pollution Liability
  • Contractual Liability

Do I Need Public Liability Insurance?

The likelihood of something happening is unpredictable and the associated legal fees that can arise when an incident occurs can be financially crippling.

As a business owner, you have a duty of care to any third party that is associated with the business and its activities. Therefore, Public Liability Insurance is highly recommended for all business types across every industry.

How Brindabella Insurance Brokers Can Help You

In the complex world of insurance options, it’s important to understand that not all insurers and policies are the same. With numerous clauses and exclusions that can impact your business, it’s essential to thoroughly read and comprehend the fine print. As a specialist Public Liability Insurance Broker, we ensure you have the right insurance coverage tailored to your specific needs.

Frequently Asked Questions

Public Liability Insurance can be a standalone policy or included in a Business Insurance Package.

Business Insurance is a highly customisable policy that can cover:

  • Property Insurance: Covers damage or loss to your buildings, stock, contents, or equipment.
  • Liability Insurance: Covers claims made against you for injuries or damages sustained by others due to your business and employees.
  • Business Interruption: Protects your income if an unforeseen event interrupts your trade.

Purchasing Public Liability Insurance is one of the most important steps in starting a small business. It provides coverage against unexpected events. Brindabella Insurance Brokers can provide the necessary insurance coverage to help you confidently start your business.

The cost of Public Liability Insurance depends on factors such as:

  • The industry
  • Annual turnover
  • Number of employees
  • Location of premises
  • Use of subcontractors
  • Claims history
  • Perceived risk by insurers

While reducing or forgoing insurance coverage may seem like a cost-saving measure in the short term, it can lead to financial losses if unexpected events occur. To mitigate potential risks and avoid unpleasant surprises, ensure you have sufficient insurance coverage tailored to your specific needs.

Contractual Liability occurs when you’ve explicitly agreed in writing, often within a contract, to accept all responsibility for personal injury or property damage regardless of fault. This obligation can be especially burdensome since it offers no advantage to you and may pose challenges in finding an insurance company willing to provide coverage for it. If you sign any contracts to secure work, it is in your best interest to review the clauses to see what your obligations are. Having an insurance policy without this extension could result in uninsured Public Liability claims that you would be financially liable to pay.

Contractual Liability isn’t automatically part of a Public Liability policy; you need to request and obtain approval from your insurer. Brindabella Insurance Brokers can review your current Public Liability policy to advise if it will extend to protect you and, if not, source a policy that can.

Paying your insurance in monthly instalments is a great way to manage your finances. The benefit of paying monthly is that you can spread the cost of your insurance premium over time, avoiding a large upfront payment.

Public Liability Insurance isn’t mandatory but is recommended for any business that deals with the public. It protects the company from any legal liability arising from accidents or injuries caused by its employees and contractors.

As your dedicated Public Liability Insurance Broker, we take the time to understand every aspect of your business. Leveraging the expertise of our experienced brokers, we engage with our extensive network of reputable insurers to secure a tailored insurance policy that aligns perfectly with your requirements.

We prioritise your needs, advocating on your behalf, not the insurer’s. Our team offers expert guidance, assessing your current coverage and identifying any potential risks to your business. We handle claims on your behalf, from start to finish, at no extra cost – from lodgement to settlement.

As your Public Liability Insurance Broker, we will ask you various questions about your business to source insurance on your behalf. Questions include:

  • The type of business you have (e.g., retail, restaurant)
  • Your business structure (sole proprietorship, partnership, proprietary limited company, corporation)
  • The size of your business (e.g., number of employees)
  • Who you work with (e.g., do you subcontract to another company?)
  • Your annual revenue
  • Your location

Brindabella Insurance Brokers can provide expert guidance by examining your business operations, client base, industry involvement, and work locations to help determine the ideal Public Liability Limit to safeguard your business. Options typically range from $5,000,000 to $20,000,000.

Submitting claims is an essential aspect of insurance policies. It’s the formal procedure through which you request compensation from your insurer after experiencing an insured loss.

The first step is to contact us and report the incident. You will need to provide us with as much information as possible, including:

  • The date and time of the incident
  • The location of the incident
  • The type of incident
  • A description of what happened
  • Involved parties

Brindabella Insurance Brokers can help you during a claim by providing advice on how to lodge a claim, and what to do if your claim is denied. We can also help you understand what your policy covers and how much the insurer will contribute. We can assist with the facilitation of repairs and can negotiate with the insurers for more favourable settlement outcomes.

At Brindabella Insurance Brokers, we conduct annual reviews to keep your insurance coverage current and perfectly suited to your changing needs. Plus, we stay in touch year-round to offer ongoing assistance and advice whenever you need it.

If your business undergoes any significant changes, please inform Brindabella Insurance Brokers promptly. This ensures that your Public Liability Insurance remains effective and tailored to your current situation.

Your professional services, along with any subsequent advice, recommendations, or breaches of professional duty that lead to financial loss for your clients or third parties, are not typically covered under a Public Liability Insurance policy. Therefore, it’s essential to consider securing Professional Indemnity Insurance to safeguard your professional services.

Examples of professional services include:

  • Lawyers
  • Insurance Brokers
  • Finance Brokers
  • Accountants
  • Consultants
  • Architects
  • Construction Management
  • Planning & Design works

You can note your landlord as an interested party on your Public Liability Insurance. These details will be included on your Certificate of Currency.

If you make a change to your policy, it may incur an additional charge by the insurer or underwriter. Brindabella Insurance Brokers does not charge any admin or endorsement fees to make changes to facilitate your updated insurance cover.

A Certificate of Currency is a document generated by insurers to confirm active insurance coverage and receipt of payment.

It’s highly recommended that you insure for Public Liability Insurance. Public Liability Insurance not only offers coverage for your sole trader business but also safeguards you in case a member of the public or one of your clients experiences an injury or property damage due to your business activities. While it is not legally compulsory for sole traders to have Public Liability Insurance, it can help protect you from potentially large legal and compensation costs.

Public Liability Insurance can provide cover for negligence by employees if it results in bodily injury or property damage to a third party.

In APRA’s May 2023 report, it was revealed that bodily injury claims are significantly impacting public liability insurance costs, with the primary factors being impacts, falls, and worker-related incidents. The analysis showed a total of 26,583 public liability claims, highlighting a stark contrast in claim costs: average payouts were $29,000 for smaller claims, soaring to $1,355,000 for more substantial claims. For a deeper understanding of these trends and the impact on insurance premiums, accessing APRA’s comprehensive report provides invaluable insights into the current landscape of public liability claims in Australia.

Public Liability Insurance is designed to provide coverage for third parties in instances of property damage or personal injury that arise as a consequence of the actions or negligence of your business and its employees. It’s essential to understand that Public Liability Insurance is to protect your business against claims made by external parties and does not extend its coverage to the directors or employees of the company for injuries sustained by them or damage to their own goods and equipment.

Yes, a general liability insurance policy typically covers products liability, providing comprehensive coverage that also includes public liability insurance.

General liability insurance typically covers claims for bodily injury or property damage caused by your business operations, products, or premises. This includes coverage for products liability, which protects your business from legal liability for injuries or damage caused by products you manufacture, distribute, or sell.

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