Public Liability Insurance is generally the first type of insurance that most business owners will purchase.
Most people refer to this type of cover as Public Liability but in fact the correct name for this insurance is known as Combined Liability or Broadform Liability as cover includes both Public & Products Liability.
Public Liability is generally associated with the traditional “slips & trips” type of incidents. These policies will generally always include Products Liability cover too, which protects you in the event of injury or damage to someone’s property a result of the product sold, imported or distributed.
You normally can’t separate the covers, which most non-insurance people find confusing & potentially frustrating, thinking they are paying for additional cover they do not require.
If you, or one of your employees, causes an injury to a third party, or damage to their property, your business may be held responsible and liable for compensation. This insurance includes cover for legal costs which alone can be potentially crippling for a small business.
Liability insurance will normally also extend to include Advertising Injury, which is another form of “damage” that your business can cause a third party. This may include copyright infringement, invasion of privacy, slander and libel. We have all seen how easy it is to say inappropriate things on social media.
Factors impacting the cost of Liability insurance cost include the type of services your business provides, annual turnover, how extensively you utilise subcontractors & labour hire staff, previous claims history and the level of cover required. In terms of levels of cover, the general standard today is $10m although a minimum of $5m cover is available and depending upon who you provide services for or product to, $20m cover is quite common. Increased levels are also available if required.