What Is Public Liability Insurance and Who Needs It?

Did you know that there are over 2.5 million active businesses in Australia? However, many of these companies fail within the first few years.

One of the most important aspects of running a successful business is having public liability insurance. However, not everybody understands what this covers or who needs it.

We've put together a brief guide that provides insight into everything you need to know. Let's take a look at some of the key factors...

So, What Is Public Liability Insurance?

This type of insurance protects businesses from any third-party claims that may arise as a result of damage or injury.

This could be something as simple as a customer slipping on your premises and sustaining an injury. Or, it could be more serious, such as damage to property caused by one of your employees. This type of coverage also extends to any legal fees that may be incurred as a result of these claims.

Who Needs Insurance for Public Liability?

If your business deals with customers or clientele in any way, then you need public liability insurance. This includes businesses that operate online, as there is always a risk that something could go wrong and a customer could make a claim against you.

Even if you have strict health and safety procedures in place, accidents can still happen. Having public liability insurance gives you the peace of mind that you and your business are protected.

It's worth noting that you will need this type of insurance to work with government agencies. Otherwise, they will deem you too risky to work with.

It can also prevent you from experiencing significant financial strain. For example, many small businesses simply do not have the funds to deal with substantial claims.

In some cases, even a single claim could be difficult or impossible to recover from. Be sure that you keep this in mind when moving forward so you can choose the policy that is best for you.

How Much Does Public Liability Insurance Cost?

The cost of public liabilities insurance will vary depending on a number of factors, such as the size of your business, the industry you operate in, and the level of coverage you require. However, it is generally fairly affordable, especially when you consider the potential cost of having to defend a claim without insurance.

For example, it's not possible for another party's claim to seek tens of thousands (or even hundreds of thousands) of dollars in compensation.

The factors that affect your premium also give you some control over how much you pay. For example, you can reduce your risk by implementing strict health and safety procedures.

You might also be able to get a discount by bundling your public liability insurance with other types of business insurance, such as property insurance or business interruption insurance.

Public Liability Versus General Liability Insurance

It's important to note that public liability insurance is not the same as general liability insurance.
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General liability insurance covers businesses against any claims that may arise from the operation of the business. This is regardless of whether they involve third parties.

This could include claims for injury or damage caused by your employees, or claims for defective products sold by your business.

Public liability insurance only covers claims that involve third parties, such as customers or members of the public. So, if you're looking for comprehensive coverage, it's recommended to have multiple policies in effect.

It's also important to keep in mind that public liability insurance is a subset of general liability insurance.

Public liability insurance is typically for those who only wish to implement the minimum required coverage. As such, these policies are often cheaper than those of general ability insurance.

What Other Types of Coverage Should I Consider?

Depending on your company, you may want to consider motor fleet truck insurance or trades insurance. You might even choose information technology insurance coverage. The best coverage for you will be contingent upon how your business operates.

It's recommended to get in touch with a reputable professional that can help guide you toward making the right decision. Otherwise, you may find yourself paying for coverage that does not necessarily help you. You may also find yourself in a situation where you do not have the coverage that you need to protect your business.

What Should I Look for in an Insurance Provider?

When shopping around for public liability insurance, it's important to choose a reliable provider.

They should have experience in insuring businesses like yours, and they should be able to tailor a policy to your specific needs.

It's also a good idea to read the policy carefully before you commit to anything so that you understand exactly what is and isn't covered. This will help you avoid any nasty surprises down the line.

As you might guess, it's also in your best interest to check out the online reputation the insurance provider has. This will go a long way in terms of providing insight into what you can expect from them.

Be sure you know how to recognize fake reviews, though, so that you can avoid working with a provider who is not able to meet your needs.

Public Liability Insurance Is Not Something You Should Overlook

Some business owners are often on the fence about if they need public liability insurance. However, it's something you should give serious consideration to. The peace of mind and protection it offers are well worth the cost.
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Want to learn more about what we can do? Be sure to reach out to us today and see how we can help you.