Accidents can happen at any time, anywhere—without warning. Without the right insurance in place, your business won’t be covered for these incidents. For any sized business, having to fork out on crippling compensation costs for third-party accidents can leave you strapped for cash. For smaller businesses, just one public liability claim can be harmful to your company’s survival, putting you out of pocket and your livelihood on the line.
Whether you’re a tradie, restaurant owner or hairdresser, protecting your livelihood with public liability insurance can minimise the financial and emotional burden should the unexpected happen.
Public liability insurance explained
Public liability insurance helps to protect against claims of personal injury, death or property damage that a third party suffers (or claims to have suffered) due to your business operations. It helps to protect you and your business if you’re liable for negligence.
For example, if someone slips and falls on your business premises, they may take legal action against your business to recover the cost of medical bills. With public liability insurance, your insurance provider may help pay for legal fees, medical bills and compensation claims if you’re covered. Without it, you could be left to foot the bill alone.
So, don’t break the bank by trying to save a few pennies, especially with so many premiums and options available.
Do I need public liability insurance?
If your business comes into contact with members of the public, then you should consider investing in public liability insurance. Although not a legal necessity for all companies, many businesses decide to purchase this insurance to protect themselves from financial burden, and also to satisfy the requirements of clients.
Coming into frequent contact with third parties might increase your risk of an incident taking place. Some examples of how this might apply to your business:
- Customers frequently visit your premises – say, if you own a retail store
- You work on client sites – such as a mobile hairdresser, or
- You work in public – for example, if you’re a builder whose work could injure a pedestrian.
How much cover do I need?
Various factors will influence how much cover and what type of cover your business will need.
Your business type and size directly affect the level of public liability insurance you require. Some businesses hold an inherent risk of injury to clients – such as go-karting or rock-climbing operators – so owners of businesses like these would generally need greater public liability coverage and will often pay a higher premium.
If you run a business with lower exposure to physical risks, like as a financial adviser or florist, there may be less threat to the public’s safety, therefore you might not need a higher level of public liability coverage.
Critically, you need to make sure that the amount of cover you obtain is enough to protect your business against legal liabilities and the total loss incurred from a legal dispute. If not, you’re at risk of being underinsured, meaning that that value you’re insured for is not enough to cover the total value of a potential claim. If your business is underinsured and the unexpected happens, you could end up paying more than anticipated, and a lot more than you can afford.
Allsure and public liability insurance
Insuring your company against third-party damage is one of the most important cost-saving measures you can take. At Allsure Insurance, we often see first-hand how a lack of public liability insurance can be devastating for businesses.
We also know that no two businesses are the same, which is why we offer tailored insurance solutions to ensure thorough and adequate cover to meet your needs.
Contact us today to find out more.
General advice warning
The information above may be regarded as general advice. That is, your personal objectives, needs or financial situations were not taken into account when preparing this information.
Accordingly, you should consider the appropriateness of any general advice we have given you, having regard to your own objectives, financial situation and needs before acting on it. Where the information relates to a particular financial product, you should obtain and consider the relevant product disclosure statement before making any decision to purchase that financial product.