If you’re a business owner, sole trader, or contractor, public liability insurance can be your saving grace if the worst were to happen. But what exactly is it? Is it suitable for your business? Learn more right here.
What is public liability insurance?
Public liability insurance can help cover costs associated with injury or property damage sustained by members of the public for which your business might be liable. That is, if your customers, your suppliers, or other members of the public are injured or sustain property damage that your business is liable for, public liability insurance can help.
Without adequate coverage, your business could be left responsible for legal bills and compensation for such claims.
Is public liability insurance compulsory?
Public liability insurance might be required when you enter into contracts for work and by some licensing authorities. For more information, check your state or territory’s government website.
If you know that you need public liability or personal liability insurance, AAMI Public Liability Insurance could suit the needs of your business. You’ll be in good company! AAMI insures over 70,000 businesses across Australia.
Who might benefit from public liability insurance?
Any business that deals with clients, customers, subcontractors, or sole traders, either directly or indirectly, should consider whether they require public liability insurance.
Here are a few businesses AAMI Public Liability Insurance can offer cover to:
- Restaurants and cafés.
- Hairdressers.
- Retailers.
- Photographers.
- Consultants.
These are just a few examples and not a complete list.
What isn’t covered by public liability insurance?
There are some instances where liability may arise that are not covered by AAMI Public Liability Insurance. These include, but are not limited to, the following:
- Injury to your employees, although this can be covered by workers compensation insurance.
- Commercial motor vehicles.
- Product recall.
- Faulty workmanship.
This is just a summary of exclusions. For the full list, you can read the relevant Product Disclosure Statement.
Do I need public liability insurance if I am a sole trader?
As long as you are undertaking work for others or have customers or suppliers visiting your business – no matter how infrequently – public liability insurance can be important.
Other benefits to having public liability insurance
With AAMI Public Liability Insurance, we make it a top priority to safeguard your business’ best interests. It can provide cover for:
- loss or damage of a third party’s goods and property, while under your physical or legal control, and
- legal expenses for a public or products liability claim brought against you.
Plus, public liability insurance can be tax deductible in some cases, if your insurance premiums are a business expense. Make sure you speak to your accountant or tax consultant to confirm this before purchasing this insurance.