How Public Liability Insurance Can Help Small Businesses

Even the most careful businesses can accidentally hurt or damage someone or something during their operations. The financial impact of compensation claims, associated legal fees, and repairs can be devastating to a small business. Public liability insurance can help you manage these risks.URL:

Public liability insurance typically protects you against compensation claims that result from bodily injury or property damage to customers / the public and their properties arising from your business. It can also cover you for the cost of repairing or replacing goods that you have sold or supplied to a third party. This includes products that are not physically on the premises (as opposed to those in a shop or on display).

It is important to note that public liability doesn’t cover your employees. This is covered by workers’ compensation insurance or mandatory workers’ compensation in Australia. However, it can include contractors, volunteers, interns, and students who are working on behalf of your business.

Why Every Business Needs Public Liability Insurance

While it is not a legal requirement, public liability can be a crucial part of your business, especially if you interact with customers or members of the public. It is also important for professionals like tradies who are carrying out physical works at clients’ locations, or musicians and performers who perform in front of an audience. The cost of your public liability insurance will vary depending on a range of factors, including the size of your physical location, company revenues and operational risks, and the chosen limit (up to your policy limits). Add-ons for professional indemnity, cyber liability, and product recall insurance can also be included in your policy.

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