What is public liability insurance?

Public Liability Insurance is designed to protect you and your business from legal and / or medical costs that arise from an incident connected to your activities.

It protects you against the financial risk of being found liable to a third party for death or injury, loss or damage to property or “pure economic” loss resulting from your negligence. Liability Insurance is essential to every business owner.

Coverage Limits

> Products Liability

> Public Liability

> Professional Indemnity



What's Covered?

Public Liability coverage can have up to 3 different sections:

  • Public Liability – legal action against the insured for breached duty of care.
  • Products Liability – legal action against the insured for sale of faulty products.
  • Professional Indemnity – legal action against the insured for negligent acts / advice.

You will generally find that you are covered in all areas as part of a standard Public Liability policy.

What cover is typically excluded from a Public Liability policy?

If your business is not deemed to be a safe environment caused by deliberate neglect then your policy may become void. In this instance, you are personally liable for the financial burden of the liability claim. Often an excess such as $500 or $1,000 will be in place. This excess is not covered by the insurance policy.

Why is professional indemnity insurance important?

Professional Indemnity insurance is designed to cover you in the event of a claim made against you because of professional negligence caused by mistakes, bad advice or poor workmanship. It provides indemnity cover if a person suffers a loss – either material, financial or physical – directly attributed to negligent acts.

Examples of Public Liability Claims

Example 1 – a sporting participant sustains a knee injury after tripping in a pothole on a sports field whilst participating in a game. They sue the club for failing to provide a duty of care to the participants and their playing conditions.

Example 2 – a club member is having a drink in the club house and the bar stool they are sitting on collapses from underneath them. they suffer a personal injury and sues the club for negligence.

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