Public and Products Liability Insurance Information
What is Public and Products Liability Insurance?
Every business, no matter the size, has a duty of care to the general public. If a claim is made and your business is deemed negligent, the courts will award costs and damages against you. Where a business is the manufacturer or distributor of a product it may also be liable for the failure of those products that it sells under the Trade Practices Act.
A quality Public and Products Liability policy should provide the following cover for all your business activities;
» Provision and coordination of a defence from claims made against your business
» Where your business is deemed negligent; provision for payment of costs and damages, including compensation for bodily injury or property damage that are awarded against you
In Australia, the majority of successful claims are for simple slip and fall type injuries. This is an alarming fact, as this type of injury can happen to any business and on any work site, including offices. This being the case, every business should have a Public and Products Liability policy in place.
It is important to know that your policy will not cover you for criminal or wilful misconduct and most policies will exclude exports to North America.
Who needs Public and Products Liability Insurance?
All entities that have a legal status from Large Commercial Enterprise through to sole traders.
As organisations are becoming more risk adverse. They require their business partners to have insurance in place. All property owners have a lease requirement that their tenants have a policy in place.
Important Tips
Talk to your insurance broker before you alter your business activities.
Do not enter into agreements that add a third party as an insured or have phrases like "hold harmless" or "waiver of subrogation".
When checking someone else's Certificate of Insurance make sure that the business activity stated actually reflects the task. It is very easy to purchase a cheap policy that in fact does not cover the organisation's real occupation.
Be aware that not all Certificates of Insurance are the same. You should take care if the insurer is not approved by the Australian Financial Services Regulator (APRA) http://www.apra.gov.au/General/New-or-Renewal.cfm A Certificate of Insurance is worthless if the insurer does not have the capital to pay a claim.
Always keep good documentation of accidents or incidents that may become a claim. Most claims are received many years after the event, so it is important to request current employees and witnesses to provide an incident report.
More Information
To obtain a quotation or further information on Public and Products Liability Insurance you can contact one of our experienced brokers toll free on 1-3000-COVER.
Alternatively, click here to complete a contact request and a broker from our General Insurance team will contact you within one business day.