- Any legal defence costs incurred
- Compensation for the cost of claims and legal settlements
- Claims related to product design, manufacturing or instruction.
- Damage to third-party property
- Injury caused to a third party
What Public and Products Liability Insurance Does Not Cover
A liability policy responds to injury or damage suffered by other people. It does not replace the other covers a business needs. Injuries to your own staff sit under workers compensation. Claims that arise from professional advice or a design error fall under professional indemnity insurance. The cost of recalling a faulty product, fixing your own defective work, or replacing goods that never left your premises is usually excluded as well. Most policies also exclude deliberate acts, fines and penalties, and liabilities you take on under a contract that go beyond what the law would otherwise impose. Reading the exclusions before you sign matters as much as reading the limit.
How Much Public Liability Cover Does Your Business Need?
Limits of $5 million, $10 million and $20 million are the common choices in Australia, and the right one depends on who you deal with rather than how big you are. Councils, shopping centres, principal contractors and many commercial leases set a minimum limit before you can work on site or occupy premises, and $20 million is a frequent requirement in construction and events. Check every contract and lease you hold, look at the worst realistic outcome of your activities, and confirm whether legal costs sit inside the limit or on top of it. A certificate of currency that shows the wrong limit can hold up a job.
What Affects the Cost of Public and Products Liability Insurance
Insurers price liability cover on the nature of your work, your annual turnover, how many people you employ, the products you sell and where they are sold, your claims history, and the limit and excess you choose. A cafe, a plumber and a machinery importer carry very different exposures and pay very different premiums for the same $10 million limit. Products sold into North America usually need to be declared separately. Documented safety procedures and a clean claims record both help when the policy is negotiated.
How a Public Liability Insurance Broker Helps
Policy wordings differ more than premiums do. One insurer may exclude work at height or hot work, another may restrict cover for subcontractors, and a third may cap products liability well below the public liability limit. As your public liability insurance broker, Barrack Broking reads the wording against the way your business actually operates, negotiates the limits and endorsements your contracts require, and manages the claim on your behalf if a third party ever makes one.