If you live in Australia, most probably your business needs public liability insurance. However, the laws differ from state to state, so it may be possible to encounter several differences when it comes to this aspect according to the state of your residence. Still, this insurance is created with the purpose of protecting businesses all over Australia.
This type of insurance is designed to protect a business against any financial risk in case the company is found liable for negligence. This means that public liability insurance covers the business for damages or losses a third party suffers because of the activity of the company. In other words, if someone is harmed or injured, of has their property damaged because of your business’s activity, this insurance covers the costs of the damage.
An excellent aspect of this insurance is that it does not only cover the incidents occurred in your studio, but also those produced in other locations while you were providing your services.
Even though this policy covers the costs of the damages suffered by a third party, the losses or damages claimed by internal parties – your employees – are not covered by public liability insurance. For this type of issues, you will need employees liability insurance.
Generally, this aspect is included in your public liability insurance. This is great news especially for those who sell and deliver goods and equipment. If someone on the propriety is injured, or he/she claims bodily injuries because of the failure of goods bought from you, the public liability policy will cover the costs of these problems. However, make sure you discuss the issue of products liability when going with public liability insurance. Once your insurance company confirms this aspect, you have nothing to worry about.
In short, this type of insurance is mandatory only in some particular situations.
If you want to apply for a QLD Electrical Contractors licence, yes, you must also have a public liability policy, with a special feature, called “customer protection”.
Another situation when you must have public liability insurance is when you are a licenced pool inspector. In this case, you need a particular form of professional indemnity insurance, which is specially designed to meet the current regulations of the government.
In other cases, such insurance is undoubtedly a useful protection for your business, but the government does not require it, which means that it is not mandatory.
Even though this type of insurance is not mandatory for all the associations in QLD, in some circumstance, you must have it. Public liability insurance is mandatory when your association:
Unfortunately, some accidents simply cannot be avoided. If someone gets injured, or his/her property is damaged because something went wrong with your business’ activity, you can be held liable.
In this case, without insurance to cover the liability costs, you will have to pay a small fortune. Some costs may go up so much that the entire company has to suffer and sometimes lead to bankruptcy. Of course, this scenario is not a desirable one for any business owner, especially if we are talking about small businesses.
Even though the government does not always request a public liability policy, this one acts as an excellent protection for your company or association. It is always better to have an adequate cover for your business than to take such high risks. Moreover, your professional success may also depend on this insurance as many companies and people check it first, and then sign an agreement or become your customers. This way, this type of policy becomes almost mandatory for any business, even though the law does not request it.
Your business is arguably the most important factor in your day-to-day life, so make sure you know everything there is to know about your business' insurance needs. For any questions you may have, don't hesitate to give us a call or fill out an online contact form. With over 7 years of experience, you can rely on Public Liability Online for all the answers you need for peace of mind when it comes to public liability insurance for your business.