Even though most of the business owners in NSW know that they need public liability insurance, only a few completely understand this concept. The majority of Aussies owning a business or having an association do not know what this type of insurance covers and how it protects them.
This kind of insurance offers you protection in case that someone is injured, or his/her property is damaged because of the action of your company. Legal and court costs in such circumstances can value a lot, and the owner of the business may be unable to pay them. However, if you have public liability insurance, you are protected from the financial consequences of any personal injury or property damage caused by your company.
What is amazing about this insurance is that it’s not limited to what happens on your property. For example, if an incident related to the goods or services you provide occurs in an external location, the damage is also covered by a public liability policy. But let’s understand this concept better by finding out more details about what it covers and what not.
This policy is designed to protect you and your business from a wide range of financial problems caused by the personal injury or property damage produced because of the activity of your company.
For example, if you deliver goods, there are high chances for some products to be damaged because of faulty workmanship. Most probably, in this case, the customer will claim this loss, and you have to pay for it.
But what if the activity of your company destroys or affects someone’s property, even though that person is not one of your customers? Public liability insurance will cover the costs related to this issue, too.
A typical example of claim in the NSW retail industry is “slip and fall”. Let’s say a client gets into your store, slips and then falls. What’s the next step? If he/she suffers injuries – or only claims them – most probably you will be sued for these. But you don’t have to worry about these costs if you have public liability insurance.
As it was already mentioned, this type of insurance covers the losses, damages, or injuries suffered by a third party because of your company. However, if one of your employees gets injured while doing his/her job, this public liability insurance won’t cover the costs. Moreover, it will also not cover any property damage of your workers. For this type of problems, you will need Employees Liability Insurance.
So, keep in mind that the public liability policy will not cover any injury or damage suffered by you or your property because of the company’s activity.
In other words, any harm produced because of your business activity to a third party will be covered by this type of insurance.
Even though you may not be asked to have it, most probably you need it. A public liability policy will protect you from a multitude of undesired costs. If you or your company is sued because of property damage or personal injury, sometimes you will have to pay a small fortune. Business owners, especially those who have a small business, can rarely afford to pay all the costs, and they are likely to go bankrupt or to lose their goods and properties. Would you like to live with this fear or would you rather opt for public liability insurance?
The cost of this policy varies a lot, depending on numerous risk factors. For example, in New South Wales, a small business which is also low-risk, can benefit from the advantages of public liability insurance for only $300, while a big business may have to pay thousands of dollars. Discuss this aspect with your insurer and see how much would this policy cost you.
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