Mon. Jun 17th, 2024
Public Liability InsurancePublic Liability Insurance

Any professional or business that serves the public needs liability protection. This is because a customer may claim to be injured one way or another by the business or professional. For instance, a client or customer can slip and fall in your business premise. As a result, they can decide to file a slip and fall lawsuit. When an electrician is repairing faulty wiring in a residential or commercial building, any mistake or accident can cause serious damage to costly equipment belonging to third parties. This will lead to an injury lawsuit. Whichever industry you are in, you will need public liability insurance to protect you and your business from the costs associated with injury lawsuits. Be sure to visit to find a suitable insurance policy for the type of business you own. 

Features of Public Liability Insurance

Most public liability insurance policies cover:

  • Third-party injuries
  • Third-party property damage
  • Product liability

Other types of insurance your business will require include commercial property insurance, commercial vehicle insurance and business income insurance among others. Public liability insurance differs from these policies in that it covers liabilities that arise from lawsuits. 

Why You Need Public Liability Insurance

i) You Want to Get More High-Paying Jobs

If you are a contractor, you probably spend a considerable amount of time looking for more contracts for your business. By purchasing public liability insurance, you can boost your chances of securing high-paying contracts. After all, many clients, councils and builders usually require public liability insurance that offers a certain level of liability protection. You may need an insurance certificate showing that you are covered against liabilities of up to 20 million dollars before securing a contract, even if you meet all the other requirements. To secure better-paying jobs, be sure to purchase a suitable public liability insurance policy. 

ii) To Protect Yourself From the Costs of Lawsuits

Lawsuits are usually costly for a number of reasons. For starters, they are costly because lawyers usually charge huge legal fees to defend clients from lawsuits. Secondly, they are costly because they often lead to costly awards for damages, which can be millions of dollars. The physical injuries, pain and suffering experienced by the plaintiff can lead to huge awards, which you may not be able to pay. Fortunately, public liability insurance will pay for all the damages that may be awarded by the court. The best way to protect your business, regardless of its nature, is to buy a suitable public liability insurance policy. 

iii) Safeguard Your Reputation

If you are a business owner, tradie or any other type of professional, the reputation you have developed so far can be tainted if business reviews show that your business is not insured. By purchasing a public liability insurance cover, therefore, you can safeguard and build the reputation of your business even further. 

Who Needs Public Liability Insurance in Australia?

If you run any type of business, you depend on the public to buy the goods you sell or pay for the services you offer. Since you are serving the public, you can injure or wrong a customer in one way another, and this may lead to a lawsuit. Some customers can even file a lawsuit against you and your business without merit. If they have a great lawyer, they may end up winning the case, leaving you with millions of dollars in awards for compensation to settle. Your small business cannot pay these damages without going bankrupt. If you have public liability insurance, you can pay both the legal fees and damages awarded by the court without adversely affecting your business. The following is a list of service providers who require public liability insurance:

  • Gardeners
  • Tradies
  • Carpenters
  • Mechanics
  • Welders
  • Sole Traders
  • Cafes and Restaurants
  • Cleaners
  • Retail Stores
  • Builders
  • Home-based Businesses
  • Hairdressers
  • Beauty Professionals
  • Consultants
  • IT Firms, and many others. 

The Cost of Public Liability Insurance

There are three key factors that will affect the cost of a public liability insurance policy. The first is the size of the business in terms of revenue and assets. Secondly, the nature and scope of your business will affect the cost of premiums. Lastly, the liability coverage limits you desire will determine the premiums you pay. 

Purchasing a Policy

Before you can buy any type of insurance policy, it is recommended you first consult a reputable insurance broker to advise you on the liabilities your business faces as they assess your coverage needs. The expert will also advise on the amount of liability coverage you will require for each of those liabilities. After that, they can help you procure a suitable public liability insurance policy for your business needs. While the cost of insurance is usually a key factor of consideration, the types of liabilities covered, and extent of liability coverage must be compared hand in hand with the premiums. It is better to pay higher premiums to ensure your business is sufficiently covered against every possible liability than to save money purchasing a policy that offers insufficient protection.