Running a business can be tough work. It takes long hours and extensive planning to safeguard your business’ growth and ultimate success, and you don’t want to be left blindsided by the unexpected. Public liability insurance is one of the most important considerations you should have when starting up or running a business.
Business owners have a duty of care to any third party that comes into contact with their business and its activities, including customers, contractors, and other members of the community. This means you hold a legal obligation to take reasonable action to help avoid third party injury, death, loss, and property damage. Consequently, businesses open to the public are particularly vulnerable to these types of incidents, which can result in costly public liability claims.
This is where public liability insurance helps protect you and your business. With the right level of cover for your business’ needs, you can avoid crippling litigation fees and create a safer business environment, while continuing its day-to-day operations.
Your business’ type and size directly affects the level of public liability insurance you require. For example, a rock climbing business holds an inherent risk of injury to clients. These business owners would need a greater coverage of public liability insurance and will generally pay a higher premium.
Conversely, a florist may face a smaller risk and therefore only require a smaller level of coverage. While not a legal obligation, it is strongly suggested you purchase the correct amount of public liability insurance for your business.
Public liability insurance typically covers:
It is important you check the coverage inclusions within a policy’s Product Disclosure Statement (PDS).
Before taking out public liability insurance, be sure to understand what is and isn’t included in your public liability coverage. Typical exclusions include:
Whether you’re operating your business in QLD, NSW, or any other state within Australia, it’s important you check for any state-specific public liability requirements with your insurer.
Although it is an added expense, public liability coverage is one bill that may save your business from coming to a halt. From something as common as a customer’s slip and fall, to accidently knocking your coffee over a client’s laptop, accidents can happen.
Public liability insurance premiums vary depending on the type, needs, nature, turnover, and size of your business, as well as the industry in which your business sits. Typically, the larger your business and the higher its risk for causing injury or property damage, the higher the cost of public liability insurance. A small business owner may pay a cheaper premium due to their reduced size and business demand, which may result in less risk.
No matter your industry, you should make it your business to ensure you’re properly covered in the event of a public liability claim. To protect all you’ve worked for and to understand which public liability policy best suits your needs, as well as the other types of insurance you should consider, compare business insurance at no cost to you at Compare the Market.