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Understanding Insurance, Part One: Public Liability Insurance   

As a small business owner, there is a lot to think about when running your own business. Whether it’s balancing the books, creating marketing plans or connecting with customers, the list goes on. But when it comes to protecting your business, itcrucial to understand the importance of business insurance and the different kinds of products that are available. 

We kick off our series of Understanding Insurance with one of the fundamental types of cover, Public Liability Insurance.  

What is Public Liability Insurance*? 

Public Liability Insurance, often referred to as General Liability Insurance, protects you and your business by providing compensation for property damage and personal injury or death caused by your business activities, in circumstances that are not covered by the Accident Compensation Corporation (ACC). It can also cover any legal defence costs you incur as a result of defending yourself. 

Why do I need Public Liability Insurance? 

While you may take all the care in the world to create a safe environment, the reality is accidents can still happen. Whether youre a butcher or an accountant, a Public Liability claim could happen in most occupations. 

As a business owner, you are liable for any property damage and personal injury* that may occur to a third party, resulting from your business activities. Public Liability insurance covers you: 

  • If you work from a home-based office 
  • Work out of your business premises 
  • At your clients premises 
  • Out in public 

A claim against your business could have a significant impact on your financial situation and could damage your hard-earned reputation for good. 

Types of Public Liability claims 

These are some examples of typical Public Liability claims: 

  • Accidental damage to a third party’s personal property 
  • Personal injury or property damage caused by a faulty or defective product that you have manufactured or sold 
  • Injury or illness due to your negligence that is not covered by the ACC 

What does Public Liability Insurance cover and exclude? 

A Public Liability Insurance policy will typically provide cover for: 

  • Compensation for accidental damage to third party property 
  • Compensation for personal injury or death to third parties where the ACC does not provide cover 
  • Legal and defence costs 

A Public Liability Insurance policy will typically not cover: 

  • Injury to your employees 
  • Damage to your own property 
  • Compensation for personal injury whereby cover is provided by the ACC 
  • Known claims and circumstances 

What level of Public Liability Insurance do I need? 

BizCover is able to offer four different levels of Public Liability cover, being $1 million, $2 million, $5 million and $10 million. 

Every business is different and has its own unique exposure to risks. The amount and type of cover required will be different for every business but here are some factors to consider: 

  • Any contracts that require your business to hold a minimum level of cover? 
  • Has your industry body set a a minimum level of cover for membership? 
  • The costs associated with third party personal injury or property damage claims like to occur in your industry?  

Find out more 

Arranging your business insurance has never been easier. At BizCover, we deliver straightforward, jargon-free quotes straight to your inbox in minutes. Jump online to find your business insurance today. 

*As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording.  The information contained on this web page is general only and should not be relied upon as advice.

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