Public Liability Insurance – What Claims Does It Cover?


Have you ever been in a position wherein the course of running your business you have mistakenly caused your customers a loss or injury? Or any instance where a piece of faulty equipment from your business machinery has caused an accident? Then you’ll be able to see the advantages of securing a public liability insurance policy. As a business owner, you are accountable to customers, suppliers. In any case, if the third party is injured, then they are liable for claims, and as an obligation, you are required to pay for damages.

Public Liability Insurance is tailored for professionals to help protect their business and cover incidents that occur in the workplace. It allows businesses to recover losses and offers protection against claims of personal injury or property damage from business operations at your place. Importantly it covers claims made by external parties, not those made by your employees.

The need for Public Liability Insurance

In Australia, the importance of Public Liability insurance is undeniable as more businesses are susceptible to having claims of third-party damage or injury. There is always a risk of injury or property damaged as a result of your service. And in this course, if they do happen, then the cost of legal fees to defend yourself can run into the thousands of dollars. That is why public liability insurance is recommended for businesses that offer products and services.

 Consider public liability insurance if:

  1. Your business premises are visited by members of the public, customers or clients
  2. You organize off-site events or activities for your business that are attended by the public.
  3. People regularly visit your home for professional purposes.

Criteria For Public Liability Insurance Coverage

As a business owner, be prepared for the different things life throws at you. Public liability insurance is designed for all types of businesses. So, take the time to consider the impact of a Public Liability claim on your business. The claims cover the costs of untoward incidents that occur in connection with your business activities.

Claims where Public Liability Insurance is applicable

  • If a customer or supplier is injured due to your negligence during business hours in the workplace.
  • Incur losses or damages to the third-party property through business equipment or machinery.
  • Accidents that occur on your business premises.
  • Incidents that take place at events organized by your company.
  • Protects people who get inadvertently injured when participating in office-based activities
  • Legal expenses, including costs of hiring attorneys to defend claims.
  • Covers individual costs of resources acting on behalf of your business when the incident occurred.
  • Loss or damages of third-party goods in your custody
  • First-aid expenses during the incident
  • Injury to people who are visiting your premises

You can buy public liability insurance directly from here or seek insurers who are specialists in handling public liability insurance.

Claims not covered by Public Liability Insurance

  • It doesn’t include the accidents that happen to you as the business owner.
  • Injuries to employees while they are working at your workplace, inclusive of transport required.
  • It does not extend to the costs involved in filing defamation charges
  • Public Liability Insurance does not cover the expenses for professional liability lawsuits for malpractice.

Always remember what is not covered in claims related to Public Liability Insurance and then choose the option if applicable for your business. Choose an insurer suited to your nature of business and the number of people you employ. Have suitable insurance claim cover to mitigate unforeseen factors.