Businesses deal with several legal challenges over the course of their journey. Some can be easy to manage, while others are more difficult to nail down. This is where “Public Liability” comes into the equation when a business is trying to protect itself.
A business that is dealing with many people from the public will want to have this type of insurance set up as soon as possible.
Here’s a detailed guide on what public liability insurance is all about, how it works, and why it’s important over the long-term.
What is Public Liability Insurance?
Let’s begin with a simple definition of the policy. In general, public liability insurance Australia provides coverage associated with personal injuries, damage to property, property loss, and/or death. However, these only apply to the business and its property. If the accident takes place elsewhere, the business is not going to be covered under this policy.
With public liability insurance, the business seeks protection due to issues that are caused by the public. For example, let’s imagine a customer is walking through the aisle and ends up falling. This can lead to a major lawsuit even if every precaution was taken by the business to keep customers safe and/or aware.
When the lawsuit comes through, it can be quite costly for the business both in the short and long-term. This is when the public liability coverage kicks into high gear to pick up the tab depending on how the coverage options are listed in the agreement.
Coverage with Public Liability Insurance
To better understand what public liability insurance is all about, it’s essential to recognize what the policy is going to cover once it’s been agreed upon.
1) Property Damage
This includes any type of third party damage that has taken place on-site. This can include a customer walking through the store and dropping a drink on another customer’s phone. The policy would ensure the customer receives compensation if they seek damages for what took place at the business location.
2) Bodily Injury
This refers to any expenses related to a person’s injury on-site. If they fall at the location, they may seek damages for medical fees and businesses can put in a claim to cover these costs.
3) Legal Costs
Any lawsuit that involves public liability will be covered under this policy.
Please note, if the employee has to go off-site (i.e. technician at a client’s house), this policy will not apply.
The benefits of Public Liability Insurance
A business that is going to have customers strolling through the location regularly should have this insurance ready to go. It’s a must due to the likelihood of something going wrong even if the business takes its time to set up warning signs and properly train their employees. Sometimes things just go haywire, which is why having this coverage is a must as it can save the business significant money over the long-term.
Most businesses are going to already have disability insurance, workers’ compensation insurance, and unemployment insurance. While this is not mandatory, it’s still a good coverage option to have if you are a public business with constant client interactions.
If possible, it’s okay to seek other options that also come under this type of coverage. For example, some insurance providers will offer general insurance, which offers comprehensive protection against all sorts of liabilities that a business would deal with. This can be an option for those who want a more versatile form of coverage for their business moving forward.
If not, public liability insurance is a great fit and offers tremendous protection.