Public Liability Insurance protects your business for any damages that arise during everyday business activities that take occur in a public space – whether to people or property. Whether your own or other people’s.

Public Liability Insurance typically covers the following major areas of exposure.

• Legal Costs – The costs incurred in either defending or settling a public liability claim.
• Property Damage – The loss, damage or destruction to physical property arising from your business activities.
• Third Party Injuries – Injury to third parties caused by your business activities.
• Loss Or Damage To Property In Your Care – This covers goods that are in your control, care or custody – even if you do not own them.
• Damage Caused By Someone Acting On Behalf Of Your Business – These can be direct employees or agents acting on your behalf e.g. contractors.

Public liability claims can be very expensive, and it is critical you have the correct amount of cover. It will be determined by the industry you are in.

Just remember with Australian law a child can wait until they are 18 before lodging a statement of claim to the courts and then have 3 years to complete the action. This time period could increase a small claim of $100,000 to $10,000,000 over 20 years.

A good rule of thumb is the more people you deal with at the one time, the higher the limit you should have. A catastrophic claim from 2 people will cost less than that of a claim from 25 people. Leases and Contract requirements may also stipulate what level of cover you are required to have.

Policy limits are generally $10M, $20M and $50M.

As a business owner you carry a legal obligation of care to any third party that encounters your business. This obligation extends to customers, suppliers, members of the public, people from other businesses or organisations.

If they experience a loss, injury, or damage to their person or property, you could be liable. Public liability insurance protects your business against expensive personal injury or property claims.