If you’re a sole trader or business owner you have a responsibility to your customers, clients, suppliers, employees and the general public, if they suffer an injury or their property is damaged as a result of your business activities.
Public Liability insurance is designed to protect you, your business and your employees against compensation awarded for negligence for personal injury or property damage, as well the legal costs of defending a claim. The likelihood of a claim being made against you is unpredictable and just one incident, whether you’re found liable or not could be crippling to your business and can have a negative impact on your reputation.
You need Public Liability insurance if your customers visit you or you go out and about to see them, either their premises, in public spaces, or places owned or controlled by others. You also need it if you manufacture or sell products.
What Does Public Liability Insurance Cover?
Public Liability insurance can cover everything from minor incidents right through to catastrophic accidents.
A typical policy will cover:
- Third Party damage claims for personal injury or property damage caused as a result of your business activities
- Legal costs and expenses incurred from defending your self and your business
- Investigation costs to investigate claim
- Medical costs and compensation payments arising from a claim. These can run into hundreds of thousands of dollars, depending on the severity of the injury or property damage
- Damage or loss of third party property in your custody, care or control
How Much Cover Do I Need For My Public Liability Insurance?
Each business will require a different sum insured, however, we would recommend an amount of no less than $10M.
When deciding on a policy you should ask yourself the following questions:
- Do any of your contracts require a minimum level of cover?
- Has your industry body set a minimum level of cover for membership?
- Does your business or trade licence require a minimum amount of cover?
- Do the terms of your lease require a minimum level of cover?
- Finally think about what your level of risk and exposure could be. What kind of accidents could occur and what could be the potential cost of a claim?