Do I Need Public Liability Insurance

Why Do I Need Public Liability insurance?

Public Liability insurance may be essential for your small businesses depending on your occupation, providing cover against claims for physical loss or damage caused to a third-party by your business operations.

It provides a safety net for all kinds of business. You may want to consider Public Liability insurance if you run a business in one of the following areas: 

• Tradie
• Retail
• Professional i.e., consultant
• Restaurant/cafe owner

All businesses and sole traders can be exposed to risk. Ensure your insurance policies are up to date and provide adequate coverage based on the particular needs of your industry and business activity. Ensure you are capable of handling a Public Liability claim, regardless of whether it is true, with Public Liability Insurance. Let the insurers and lawyers take care of the claim so you can get back to what you do best – running your business.

Is Public Liability insurance a legal requirement?

Public Liability Insurance is not a legal requirement in Australia for most businesses. However, there are some situations where it is mandated before you can legally operate. Even though it’s not required by law for most, all small businesses should consider having Public Liability insurance to protect them against personal injury caused to a third-party or damage to their property. No matter how careful you may be, if your business interacts with clients, suppliers or even members of the public there is the potential for a claim to occur, which could cost your business thousands of dollars in legal fees and compensation.

Consider getting cover if one or more of the following applies to your business:

• You have customers, suppliers or members of the public who visit your business premises, e.g. diners who visit your restaurant, or clients who visit your office, whether in a commercial building or home-based office
• Working at your client’s site, e.g. a tradesperson carrying out repairs or work in other people’s homes
• If your business hosts public events, like a stand at a trade-show attended by members of the general public

Contents covers your business contents or stock if they are damaged in a fire, storm or due to malicious damage or some other defined event listed in the policy.

Did you know?

Public Liability insurance is generally a mandatory requirement for some trades when you operate under a state issued license, for example builders, plumbers or electricians. Depending on the state or territory you work in and your occupation there are special requirements for your cover.

For example, it is a legal requirement in Queensland for electricians to hold the Consumer Protection extension with a minimum level of $50,000 cover as well as Public and Products Liability insurance with a limit of at least $5,000,000 in order to obtain an electrical contractor’s license.

It may also be a requirement under a government or private client contract, or as part of a lease agreement for renting commercial property.

Do I need Public Liability Insurance if I have a home-based business? 

Running your business from home can bring a whole host of benefits like flexible working hours and not having to battle with peak hour traffic and public transport, but along with the benefits there are also potential risks for things to go wrong.

If your business has any interaction with clients, suppliers or any other third-party, or you sell any form of products, Public Liability insurance is a small price to pay for big peace of mind.

What if I don’t have Public Liability insurance?

If you don’t have Public Liability insurance, you may be exposed to different types of risks that could, in some circumstances, leave your business in distress. Could your small business survive the financial cost and reputation damage that may possibly arise from a Public Liability claim?

As a small business owner, you are responsible for the safety of yourself, your staff members and members of the public. The risk of accidents occurring exists all the time! For example, imagine if a customer tripped over some merchandise in your store and brought a claim against you for negligence. Between the legal fees and potential medical bills, this small incident could become a major issue for your business.

Running your own small business is no easy task. Don’t let your hard work go to waste! Assess your insurance needs and make sure you have adequate coverage for all potential scenarios.

The Bottom Line

Know you are covered with Public Liability insurance from BizCover. Our online platform is easy to use and drama free!