What is public liability insurance?

As a small business owner you already have plenty to worry about. The last thing you want to think about is paying hefty legal costs in the event of an accident. Public liability insurance protects you and your business against the legal costs of a claim should a customer, supplier or member of the public get injured or sustain property damage while you are providing a service, either at your workplace or at another location.

Public liability policies may also extend to product liability. If you sell, supply or deliver goods, including in the form of repair or service, you may need cover for claims against you where goods have caused injury, death or damage.

Understanding public liability

A public liability claim could result from:

• An unsafe environment where a third party was injured
• Damage to a third party's personal property
• A faulty or defective product

Businesses that interact with customers or the public can be protected by public liability insurance. This includes consultants, contractors or tradespeople who work from home or visit their clients' premises as well as businesses that have an office, showroom, shop or any premises.

Policyholder benefits include compensation for personal injury and/or property damage to a customer or member of the public as well as legal and defence costs. Employee injury, damage to your property and known claims and circumstances are typically not covered.

Policies are usually tailored to individual businesses and range from $5 million to $20 million worth of cover. Each business will require a different amount of cover depending on the type of business and the manner in which it is carried out.

When deciding on how much cover you should have you should think about the following factors:

• Do any of your contracts require a minimum level of cover?
• Has your industry body set a minimum level of cover for membership?
• Does your business or trade license require a minimum amount of cover?
• Do the terms of your lease require a minimum level of cover?
• Finally, what is your level of risk and exposure? What kind of accidents could occur and what could be the potential cost of a claim?

To find out more about public liability insurance and learn how it is a part of an insurance package for your business contact Choosi. We'll help you find the right business insurance with quotes from leading insurers.