What does Public Liability insurance* cover?

Public Liability insurance provides cover for your business if a customer, supplier or a member of the public is injured or sustains property damage due to your negligent business activities  

It is designed for all types of businesses, big or small, and is an important form of cover if your business deals with third-parties such as clients, suppliers or members of the public. 

As a small business owner, we understand that you like to be prepared for the different things life throws at us, but probably never really expect the well … unexpected to actually happen, because it will never happen to you right? 

Think again. 

Imagine the surprise of hearing a loud shriek outside your home-based office. Concerned, you walk outside to find one of your regular clients has fallen down your stairs and broken their ankle.  Fixing the stairs which had a few missing tiles was on your to-do list but you hadn’t had a chance to get around to it..Your client could potentially make a public liability claim against you for their injury, including the associated medical expenses and any loss of earnings. 

The harsh reality is that public liability claims can be very expensive (the example above could easily cost well over $50,000), and not having Public Liability insurance means you could well end up paying for the claim straight from your back pocket 

Bear in mind that Public Liability insurance is designed for all types of businesses, not just those who work in an office or have a fixed business premises… 

Picture a landscaper busily working away beautifying a client’s backyard complete with a new retaining wall, leafy plants, and now courtesy of accidentally ‘cracking’ a water pipe while distracted, an unwanted water feature. No need for a flood of tears, Public Liability will likely have your back by providing cover* for damage caused to third-party property when things don’t go exactly to plan. 

Take the time to consider the overwhelming impact a Public Liability claim could have on your business, not only financially but to its reputation 

The key things Public Liability Insurance is designed to provide cover for include: 

  • Any award or settlement of compensation to a third party due to them sustaining personal injury or property damage due to your negligent business activities 
  • Costs awarded to the claimant if they bring a court case against you as a result 
  • Your defence costs, including legal expenses incurred in assessing or defending a claim


*As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice.

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