Liability can be a confusing term for small business owners. You’ve probably heard of Public Liability insurance, but what about Legal Liability?

If you’re a sole trader or small business owner, there’s no doubt you’re aware of the importance of protecting your business and your customers with Public Liability insurance. It offers protection should a customer, supplier, or even member of the public, sue your business for personal injury, death, or damage to their property. And whilst you probably take every care not to injure someone or damage their property, it doesn’t mean you won’t be found negligent should an unwanted accident occur, or someone attempts to make a claim against you. As cliché as it sounds, accidents happen. If you don’t have Public Liability insurance you face the risk of being out of pocket for hefty legal and compensation costs that can potentially cripple your business.

As a small business owner, you may already hold Public Liability insurance*. But do you know exactly what your policy does and does not cover?

Just imagine: A phone call out of the blue. The caller has a voice you don’t recognise. He’s telling you he is hurt – badly – and you’re responsible. You hang up.

Public Liability? Tick. Professional Indemnity? Sorted. But there’s one business insurance that often flies under the radar — Statutory Liability insurance.

It may have taken some time for the reality to hit, but the wider public is now starting to realise that hackers aren’t just fictional brooding movie villains – they’re real people doing real damage across the globe, particularly in Australia and especially to small businesses.

SME retailers and professionals have seen material price reductions on their Public Liability insurance, while prices have remained steady across other products and occupations.

Business insurance is part of many small businesses’ risk management plans, helping them cover unexpected costs and protect their finances. For sole traders, the need for insurance may be even more critical.