Understanding Public Liability Insurance

For many business owners public liability is simply product liability insurance, so they wonder if they need it. Of course, if you don’t produce products, you may think that you don’t need this coverage, but you may be making a very costly mistake. Here we’ll explore the topic of public liability insurance, so you have the information you need to make an informed decision.

The Basics

Public liability insurance is perhaps the most common type of insurance that is taken by businesses of all sizes. Without adequate cover, a business can face exorbitant fees and penalties for any damages caused to customers or clients. Whether you have an established business or are a brand new start up, it is important that you have sufficient coverage to protect you in the public sphere.

Why is Public Liability Insurance Needed?

Although it is not obligatory for every business, public liability should be considered crucial if there is any degree of public interaction during your business activities. From customers receiving a delivery to clients visiting your place of business, public liability insurance should be considered a necessity. Even if you operate a home based business, if you use your home office as a meeting place or supply products and services, you could benefit from the coverage.

The standard public liability covers a variety of situations, but generally, it will provide protection if someone is harmed or injured due to your business activities. This type of insurance may also provide cover if a third party is caused damage. It is worth bearing in mind that even minor damage to personal property could lead to hefty financial penalties. You may be required to pay legal fees, damages, and even fines out of your own pocket if you don’t have an appropriate policy.

Does Your Business Need Public Liability?

If you own a business where customers, clients, employees or simply members of the general public visit,  you will need public liability insurance. Other examples of where you would need this type of cover is if you have a home based business but have individuals visit for business purposes or if your business organises off site activities or events where the general public attend.

A standard policy will cover your business and any subsidiaries, your employees while they are acting within the scope of their duties and any directors or partners of your business.

The amount of coverage needed will depend on your risk profile. The risks depend on your industry standards and any requirements specified by law, regulations or even your clients. An experienced broker can help you to assess your risk profile to determine the appropriate level of coverage needed for your business.

If your business is in need of public liability insurance, Perth based GSK Insurance is here to help. We can guide you through the options from public liability insurance to product liability insurance, to ensure that your risk profile is thoroughly assessed and you have adequate protection. Our team is also available to answer any of your queries or questions.