It is imperative to have a Public Liability Insurance policy for your company, because it will protect you in case of an accident. This coverage will pay for medical costs and compensation in case of an employee’s injury. This insurance is mandatory for employers in Australia. However, the coverage limits are different for different states and territories.
If you have a small business, you might already have Public Liability Insurance, but you may not know what it covers. In many cases, small business owners assume that their policy covers employees, but this is not true. In some cases, the PL policy may not cover employees who are not covered by workers’ compensation law.
Public liability insurance covers injuries and property damage that take place at your business premises. For example, if a customer slips on a carpet in your store, the public liability insurance will pay for the medical expenses. It will also pay for any damage to a third party’s property. For example, if a customer is injured while carrying a heavy box and sues you, public liability insurance is likely to cover the costs.
Another way to protect your business is by buying a product liability insurance policy. This type of insurance is much more expensive but will protect you in case of a lawsuit. It will also cover reputational damage and pay out compensation if a person is injured by a product. It will also cover your business in case of an injury or property damage caused by a defective product. However, public liability insurance does not cover employees; it would need to be added to your general liability insurance or your workers’ compensation insurance.
However, employers liability insurance will protect your business against claims from employees. It will cover the legal defense costs and compensation payouts, if an employee makes a claim against you. In some cases, employers liability insurance will also cover injuries or illnesses incurred on the job. But this type of insurance may not cover all cases.
Public liability insurance premiums depend on several factors, including the type of business and size of physical location. Premiums can vary between companies and can range from $5 million to $20 million or more. While a $5 million policy might be sufficient for a home-based business, a $20 million policy is recommended for a larger, professional business. Some organisations require that you have at least a $20 million public liability insurance policy in order to be fully protected.
If you operate a home-based business, you may want to consider public liability insurance to protect yourself from accidents that occur at your home. If you have employees in other locations, you may be able to get coverage through a policy from a sub-contractor. Sub-contractors, however, are not employees of the business and must be added to your policy. Some businesses also require their subcontractors to have their own public liability insurance.
Up next is What does public liability insurance covers
Public liability insurance is important for businesses that interact with the public. It protects you against costly lawsuits if a client falls ill or becomes injured in your business. Without this coverage, a client can sue you for damages, property damage, or both. By having a public liability insurance policy, you can protect yourself from this risk and protect your business.
Public liability insurance is an important coverage for your business, but the policy is not comprehensive. It can include advertising injury coverage, which protects you from lawsuits from customers.
In addition to protecting your business from property damage, public liability insurance will protect you against lawsuits from members of the public for injuries that occur while conducting business. It is also important to note that public liability insurance has limitations, and the policy may not be enough if your business is facing a lawsuit related to false advertising.