Is it a legal requirement to have Public Liability insurance in Australia?
In some situations, such as public events and facilities, it may be compulsory to take out Public Liability insurance. In most cases you can choose whether to take it out, however it is strongly recommended for any business that has dealings with the public to protect you from unanticipated financial pressure.
Public Liability insurance covers legal fees, costs and expenses. It generally covers the cost of claims, and the compensations you are directed to pay should a claim be upheld. It is important that the size and nature of your business operations are considered to ensure your policy is broad enough to cover all activities.
What does Public Liability Insurance cover?
Public Liability insurance covers the business and people it’s employees. It can include protection of business partners, company directors and contractors.
It will cover the following:
Public Liability vs Professional Indemnity
What is the difference?
Public Liability covers your liability to pay compensation for injury or damage to property caused to a third party in connection to your business. For example, if a customer slips and falls while on your business premises.
Professional Indemnity protects against the risks associated with providing advice, design or recommendations to clients. For example, a customer could sue you for damages if it’s alleged that your advice has caused a loss.
If your company has customers visiting your premises and you also provide professional services to those customers, then Public Liability and Professional Indemnity Insurance may both be beneficial to protect your business.