What is Public Liability Insurance?

What is Public Liability Insurance?

If you run a business, it’s important to be aware of the types of insurance you may need to consider. There are many types of business insurance like Public Liability Insurance, with a myriad of purposes, definitions and benefits. Unless you understand what each type of insurance is for, then how do you know which ones you may need to consider? You don’t.

This is where insurance blogs like this come in. Now, let’s start with one type of business insurance at a time, shall we? Let’s start with Public Liability Insurance.

What is PL Insurance?

In short, Public Liability Insurance (PL) protects you and your business against the financial risks of being found liable to a third party for death or injury, loss or damage to property.

Public Liability Insurance covers a person, a business, an event, a contractor – even a community building.

Examples of a public liability claim may be someone tripping over and hurting themselves in your office reception area, or if you’re a tradesman working on a job, you might accidentally damage your client’s property whilst working.

Why is PL Insurance important?

What you may not realise, is that as a business owner, you have a responsibility to the safety of any third parties that come into contact with your business. These could be your customers, suppliers and community, along with third-party property too.

Yes, if someone injures themselves at your business premises, there is property damage or another person is injured through negligence or faulty workmanship, that person has the right to take legal action against you.

And have you got money lying around to pay for that sort of thing? It’s unlikely.

What does Public Liability Insurance cover?

Providing you have the right policy in place, your insurance company will provide the funds to cover your legal costs. They also cover compensation claims, leaving your business free of financial risk and you, a little less stressed.

If your business sells products, there is the option to extend your policy to cover Product Liability too. Meaning that if a claim is made against you where your product has caused injury, damage, or even death, the legal costs will be covered here too.

It’s important to remember that PL Insurance doesn’t cover your employees. This is where Workers Compensation Insurance comes in.

What type of businesses require Public Liability Insurance?

Many businesses can benefit from holding a PL Insurance policy. Some of the most common businesses to hold this policy are:

  • Tradespeople
  • Retailers
  • Consultants
  • Cleaners
  • Café or Restaurant Owners
  • Doctors and Medical Professionals

Whilst the business types listed above are major users of public liability cover, it is true that almost any business type in Australia can benefit from this cover.

Some businesses are even required to hold a policy by law.

Find out if your business needs Public Liability Insurance

Public liability claims can be extremely costly. If you’re a business owner and don’t currently hold a policy, it’s important to speak to an insurance broker to find out whether you may need one.

Find out more about Public Liability Insurance and read some FAQs for business owners here.

Grace insurance is here to find out more about you and your business and advise you on which type of insurance you may need for your business. We can provide you with an obligation free quotation on these insurances too.

Contact Grace Insurance in Landsdale, north of Perth today.

By | 2019-10-12T15:39:24+08:00 May 5th, 2019|Business Insurance, Public Liability|1 Comment

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