Workplace accidents are inevitable. Even the most careful business with the strictest of due diligence procedures will experience some sort of staff injury. Should an accident happen, settling the costs without insurance can take a toll on your business. For many companies in Australia, public liability insurance can be a great safety net. However, some small business owners may be lost as to what public insurance adds to a business. Here’s a comprehensive guide on what public this type of insurance offers.
What Is Public Liability Insurance?
Every business owner has a duty to protect all its staff and other third parties that deal with their products and activities. When your business is the cause of harm or injury, public liability insurance can come to the rescue. It doesn’t only apply to unfortunate events on your business premises. If your business has general liability insurance, which is more extensive, you can be covered from all bodily injury and property damage claims resulting from your products, services, or operations.
What Could a Public Liability Claim Result from?
Public liability claims may result from several events, including accidents in public places. These areas are often under the authority of public institutions and private bodies legally mandated to provide maintenance services when needed. It doesn’t matter if the accident happened in Queensland to an NSW resident. A person has the right to a public liability claim as long as the accident occurs in a public place.
So let’s say your construction company wins a contract to repair an inner road in a public place in Queensland, and you happen to damage a local resident’s garden fence. The accident didn’t happen on your premises. But your tools (products) and personnel (operations) were involved. Therefore, you may be legally responsible.
Depending on the type and size of your business, you may require a higher or lower level of insurance coverage. Businesses with a high-risk profile need extensive public liability coverage and can end up paying more in premiums. In some parts of Australia, public liability insurance cover is a must-have for specific businesses, including accountants, builders, carpenters, electricians, etc. But whether you’re listed in the mandatory list or not, this insurance can help you cover a wide range of claims. Now, let’s delve deeper into what public liability insurance covers and what it doesn’t.
What Does it Cover?
Personal Injury: Suppose a third party to your business (it could be a customer or a general public member) suffers a personal injury from your operations. In that case, you can bank on your public liability insurance. It can also cover third parties and their families when a work-related injury results in death.
Property Damage: Anytime your operations result in property damages for any third party, public liability insurance can help cover repair and replacement costs.
Legal Costs: Fighting legal battles can be draining not only financially wise. Your time, energy, and sanity are all at stake. But at least, public liability insurance can help you with legal expenses when a third party drags your business to court over a personal injury.
What it Doesn’t Cover.
Most insurance companies may issue product disclosure statements to every successful public liability insurance applicant. This document should provide details on what your insurance policy doesn’t cover. Some general exceptions include:
Product Recalls and Withdrawals: When authorities recall your product from the market, all related expenses don’t fall under this type of insurance.
Bodily Injury to Employees: Most of these expenses are covered with worker’s comp and doesn’t apply to your insurance policy.
Asbestos or Damage to Property: Many businesses subscribe to asbestos insurance policies to cover all repairs and replacement costs when the worse happens. The insurance doesn’t cover that and any other damages to your property.
Accidents Before or After the Policy Period: Most insurance policies come with a specified period. Your public liability insurance is only good during this period. All events before and after do not apply.