Public liability insurance is a type of coverage that protects businesses from claims made by members of the public for personal injury or damage caused by your business activities. It is essential for any business that interacts with the public, whether through physical locations, online interactions, or at client sites. This insurance helps cover compensation payments, including medical expenses, legal fees, and settlements that could arise if a member of the public is harmed or their property is damaged due to your business operations. Without public liability insurance, your business could face significant financial strain due to legal expenses incurred in defending allegations and compensation payments.

Learn more about our public liability insurance.

Who Needs Public Liability Insurance in Australia?

In Australia, public liability insurance is highly recommended for any business that has physical interactions with the public, whether this is at your own place of business or at your client’s site. This includes industries like retail, hospitality, construction, healthcare, and trades. For example, if you operate a café, public liability insurance will seek to respond to any demand for compensation brought by any third party who may enter your café and allege to have injured themself on your premises, such as slipping on a wet floor, being burnt by a scolding hot coffee or suffering food poisoning from a sandwich they bought from your café. Similarly, tradespeople like electricians or plumbers working on a client’s site needs to have public liability insurance in the event they are accused of causing damage to their client’s property. Essentially, any prudent business owner should have public liability insurance. Not doing so could result in the business being unable to meet any demand for compensation and/or the legal fees required to respond to a claim, potentially leading to financial hardship or even closure.

Professional Indemnity Insurance vs Public Liability Insurance

Professional indemnity insurance and public liability insurance respond differently to claims made by third parties, though both protect businesses from demands for compensation and legal costs. Public liability insurance seeks to cover the financial loss arising from third-party personal injuries or property damage caused by your business activities, whether it was unintentional, a mistake or through your or your employee’s negligence. On the other hand, professional indemnity insurance seeks to cover businesses from claims for financial loss arising from harm caused by the professional advice and/or services that your business offers its customers. For example, if a client sues you for providing negligent advice that leads to financial loss, you should look to making a claim on your professional indemnity insurance policy. If the same client trips and falls in your office because you failed to mop up some water that another person had notified you of a couple of hours earlier, your public liability insurance policy could be called upon to respond to a claim. Both are essential, depending on the nature of your business.

How Much Does Public Liability Insurance Cost?

The cost of public liability insurance varies depending on factors like business type, location, and level of coverage. Premiums can differ greatly between industries and insurers, with higher-risk sectors like construction or hospitality generally costing more due to the increased likelihood of claims. Additionally, the size of your business and the amount of public interaction it has can affect pricing. It’s best to speak with a broker or request quotes from multiple insurers to get an accurate idea of costs based on your specific circumstances.

Contact us at Gow-Gates Insurance Brokers for more information on protecting your business.

Disclaimer:

The response of an insurance policy to a claim can vary depending on each particular circumstance and the terms and conditions of the policy. The information provided in this blog post is for general informational purposes only and does not constitute legal, financial, or insurance advice. While we aim to keep the content accurate and up to date, insurance needs vary widely depending on individual business activities, industry, and risk profile. Before making any decisions regarding insurance coverage, readers should consult with a qualified insurance broker or advisor to ensure that the policy they choose is appropriate and sufficient for their specific business circumstances. We accept no responsibility for any loss or damages resulting from reliance on the information in this post.