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Public Liability Insurance

Added: 9 May 2012

Although the Equita website is focused on personal forms of insurance and finance, we understand that many of our readers will have business insurance needs.

One of the most commonly required forms of insurance for business owners is public liability insurance.

Almost all businesses can benefit from holding public liability cover, and failure to do so can have some serious consequences.

What is Public Liability?

Public liability insurance covers businesses and subcontractors from the financial costs involved when a client or member of the public suffers a loss due to your business activities.

When your business activities result in property damage or personal injury to another person, they have every right to seek compensation from you and your business. This is the type of event that a public liability insurance policy will cover you for.

Public Liability Claims

Typically a public liability claim will involve property damage or personal injury, or in extreme cases even death.

Claims will often be due to negligence on the part of the business owner or their staff, but in some cases it can simply be rotten luck. Either way, if it happens under your watch you will generally be liable for the financial costs.

A minor claim for public liability could be simple property damage worth a few hundred dollars. At the other end of the scale are claims for serious personal injury, disablement and death, which can easily stretch into the millions.

Insurance Companies

As with other forms of insurance such as income protection and trauma insurance, there are a wide variety of insurance companies offering public liability cover.

Many of the major insurance companies such as AAMI and NRMA offer business insurance directly to customers in Australia, whilst others such as Allianz and QBE offer cover via insurance brokers.

When choosing an insurance company for your public liability policy it is important to shop around in order to find the best deal for your business.

Different insurance companies offer different deals depending on the type of business, and the cheapest insurer for a carpenter might not be the best option for a retail store. The important part is to shop around to find the best option for your particular needs.

Comparing Public Liability

All business owners know the importance of keeping costs down, and insurance is always an area where money can be saved. Whilst the cost is important, it is never a good idea to purchase a policy purely because it is the cheapest.

When comparing public liability insurance the main concern should be whether or not the policy is going to protect you, your business and your family from any major financial disasters.

Although the main benefits of public liability policies are generally no different from one insurance company to the next, there are some minor differences that should also be considered.

Taking Out Cover

Once you have obtained your quotes and decided to proceed with a policy, the next step is to complete the insurance proposal and take out some cover.

You can apply for public liability insurance directly through most insurance companies, however many business owners choose to take out cover via an insurance broker to take advantage of the broker's knowledge and experience.

For more information on business insurance please speak with your insurance broker or other insurance professional.

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General Advice Warning: The information contained within this website is general in nature and does not take into account your personal needs and objectives. You should not act upon any information without first seeking professional advice. Equita Financial Services Pty Ltd is no longer an authorised representative of an AFSL, and is therefore not licensed to provide financial advice. Please read the terms and conditions of use for this website.
Are you a tradie looking for income protection or life insurance for tradesmen? Check out Tradesman Insurance for the right advice. For medical professionals we recommend life insurance for doctors. Insurance consulting services are supplied to Equita by AMAUS.
Equita Financial no longer provides financial advice on risk insurance, superannuation or investment. Our website provides information on life insurance, total & permanent disability (TPD insurance), trauma insurance, income protection and funeral insurance. Our website also contains information on superannuation, retirement planning and investment, including managed funds and margin lending. The information is general and should not be seen as advice. You should not act upon any information on this website without first seeking advice from a qualified and licensed professional.