The Importance of Public Liability Insurance on a business

Public liability insurance is a type of insurance policy that provides financial protection to businesses or individuals in case they are held legally liable for third-party injury or property damage as a result of their business activities or negligence. It covers the costs of legal fees, compensation claims, and other related expenses that may arise from accidental injury or damage caused to a third party or their property.

Public Liability Insurance is essential for businesses as it provides a safety net against unforeseen events that can result in significant financial losses. In addition to providing financial protection, public liability insurance can also provide peace of mind to businesses and individuals, as well as enhance their credibility and reputation with customers and clients.

What does public liability insurance cover?

Public liability insurance is designed to cover the costs of legal fees, compensation, and other expenses that may arise if a third party makes a claim against you for injury or property damage that occurred because of your business activities. Here are some of the things that public liability insurance may cover:

Bodily injury: If a customer, supplier, or member of the public is injured while on your premises or because of your business activities, your public liability insurance may cover the costs of medical treatment and any associated expenses, such as lost income or rehabilitation costs.

Property damage: If your business activities cause damage to someone else’s property, such as a customer’s car or a neighbour’s fence, your public liability insurance may cover the cost of repairs or replacement.

Legal expenses: If a third party sues you as a result of your business activities, your public liability insurance may cover the costs of legal fees, including the cost of hiring a lawyer and any court fees or settlement costs.

Product liability: If your business produces or sells products, your public liability insurance may cover the costs of legal fees and compensation if a customer is injured or suffers damage as a result of using your product.

It’s important to note that the exact coverage provided by a public liability insurance policy can vary depending on the insurer and the specific terms of the policy. Therefore, it’s important to carefully review the policy and understand what is and is not covered before purchasing a policy.

It is highly recommended to arrange this insurance coverage through a qualified insurance broker as it’s becoming increasingly difficult for business owners to access and obtain the appropriate coverage directly from insurers.

At ARMA, we understand that every business is unique. We will work with you to explain your Public & Product Liability exposures and recommend the right coverage for your business needs.

Contact ARMA Insurance Broking Hunter Valley today to protect your business against the unpredictable.

Email:maitland@armainsurance.com.au

Phone: 02 4932 4444