Public Liability Insurance and Products Liability Insurance covers your small business against legal costs and compensation payments resulting from injuries or property damage to your clients, contractors or members of the public which was caused by you or one of your employees. If you are a manufacturer or distributor of a product you may also be liable for the failure of those products that you sell under the Trade Practices Act.
The insurance would cover the compensation payment plus any legal expenses. Even when you do everything right there is always the chance of an accident happening. You need public and/or products liability:
- Even if you don’t have visitors to your office or home, you could still suffer a public liability claim against your business; for example, if you accidentally damage a client’s property in their office
- Easy access to ‘no win no fee’ legal services which help individuals claim compensation may increase the likelihood of a business experiencing a public liability claim
- Anyone working for you could trigger a public liability claim against your business if their actions at work injure a client or member of the public
- Many companies and organisations will also insist on their suppliers having public liability insurance cover in place.