What’s the difference between Public Liability and legal liability?

While Public Liability and Legal Liability sound similar, they cover different types of risks. Public Liability is an insurance policy that generally helps cover claims for injury or property damage. Legal Liability is normally the responsibility behind those claims. It’s what you may be held accountable for if your business causes harm through action or inaction.

Understanding the difference can help you make more informed decisions when choosing cover for your business.

What is Public Liability?

Public Liability insurance is designed to protect your business if someone is injured or their property is damaged as a result of your business activities. It may help cover legal fees and compensation costs if a third party makes a claim against you.

For example, a customer trips over a cord in a salon and gets injured, or a business owner accidentally damage a client’s equipment while working on-site.

These incidents can lead to costly claims, especially if medical treatment or repairs are involved. Public Liability insurance is designed to cover these types of situations, including legal costs and compensation.

What is legal liability?

Legal liability is not a type of insurance policy. Instead, it refers to your legal responsibility if your actions or omissions cause loss, damage or injury to another party.

Legal liability can arise in various situations where you are found to have breached a legal obligation or duty owed to others.

Common misconceptions about liability

It’s easy to assume that having Public Liability insurance means you’re covered for every possible legal risk. But the truth is, Public Liability protects you when someone outside your business is injured or their property is damaged due to your business activities. But it doesn’t cover every kind of liability you might face.

For example, employee injuries are typically covered by Workers’ Compensation insurance, claims arising from professional advice or services are generally covered by Professional Indemnity insurance, and data breaches or cyber attacks may require Cyber Liability insurance. Of course, this all depends on the type and level of cover. Make sure to always read the policy wording to understand what you may or may not be covered for.

Know your liability. Protect your business

Unexpected incidents are part of doing business. The right cover helps you stay prepared, so your business can keep running with minimal disruption.

Whether you work from home, on-site, or on the road, Public Liability insurance protects your business from costly accidents and claims. Compare Public Liability quotes from leading Australian insurers. It’s fast, affordable, and completely drama free.

The provision of the claims examples are for illustrative purposes only and should not be seen as an indication as to how any potential claim will be assessed or accepted. Coverage for claims on the policy will be determined by the insurer, not BizCover.