We all know the potential risks we face whether we are driving a car, having visitors at our home or offices or having products cause injury. The cost of these claims can amount to thousands, leaving you financially distressed. By choosing the right public liability insurance to suit your specific needs, you can relieve the stress caused by an accident.
The first thing you need to understand is that Australia, much like the UK and parts of the USA work according to the TORT system. This system claims that the person who caused the accident is responsible for all financial responsibility relating to that accident. Therefore if you are in a motor accident, you are held liable for all the costs and if your insurance doesn’t cover everything, the balance will be due personally. This can result in the claim of assets or your home, so having the right amount of insurance is imperative at all times.
Public liability insurance can be broken into three sectors, public liability for individuals, public liability for businesses and public liability for tradesmen.
Public Liability Insurance for Individuals
When looking at public liability insurance you first need to determine what is covered in your auto and householders insurance policies. All auto and householders insurance policies cover you for public liability insurance, but often these policies don’t offer you enough cover should you be the cause of serious injury to a third party.
For example if your auto insurance covers you for $20 000 public liability and you are the cause of a serious three car pileup, it is obvious that this amount will not cover all the expenses for injuries caused to third parties.
The decision to take extra personal public liability is an admiral one which can save you thousands in the long run.
Public Liability Insurance for Businesses
Businesses benefit greatly from public liability; it protects them when a customer injures themselves at their offices due to slipping, falling or tripping. It also covers the business should a product or item fall onto a client or the client suffers undue stress resulting from an accident at your property.
Public liability insurance is broken down into various policies, which all fall under the same liability category.
Workman’s compensation or Combo is essential to any business owner, enabling them to pay wages and medical expenses when a staff member injures themselves while at work.
Professional indemnity protects the business against any civil lawsuits which may result due to bad advice or service given by the business or its employees.
Products liability covers you against compensation which may be due caused by an injury or loss to a customer as a result of using your product. This is in terms of the Australian Consumer Law (UCL), which entitled customers to get compensation for accidents caused by the use of products. This is why regular quality checks and detailed manuals are advised for every product you sell.
Product recall liability insurance protects the business when a product needs to be recalled to the factory due to defect for tampering. The cost of this exercise can be pricey, but the policy can cover the cost for advertising and notifying the retailers.
Management liability insurance is a serious one to consider if you have a business that is run by directors and managers. Often customers will sue the director or manager directly, rather than suing the company. This cover will protect your directors and managers from any legal action taken against them.
Public Liability Insurance for Tradesmen
If you are a plumber, electrician or builder then you know the risks involved in going to do work at someone’s home or office. The unexpected brick falling and striking a pedestrian or a bucket left out that someone trips over can cost your business dearly and leave you in financial ruin.
Ensuring that you are covered for public liability and professional indemnity is essential to any tradesman. The professional indemnity protects you if work you completed develops a fault shortly after repair. You may have missed something and it causes damage to the home, professional indemnity will cover the expenses for the repairs and loss of income if the owner of the property demands their money back as a result.
Public Liability Insurance Conclusion
The unfortunately thing about accidents is you never know when or where they will happen. The only thing you can do is protect yourself against any incidents that occur as a result of your driving, negligence or business. This way you are protecting your income and finances and will not leave yourself in dire financial trouble.
The thought of your assets being seized as a result of a motor accident you caused because your motor insurance policy doesn’t offer you enough public liability insurance is devastating. Be prepared and ensure that you always have enough cover and protect your finances for years to come.