As a business owner or manager, you carry a duty of care not just to your employees or shareholders, but to your clients, your customers, contractors, visitors and even more broadly, members of the public.
Liability insurance is designed to protect you and your business financially against claims arising from injuries or damages to other people or property that result from some aspect of your business.
Types of liability insurance that you might consider include:
- Public liability
This type of insurance is important for businesses that have customers or clients visiting their premises. Public liability insurance provides covers in the case of death or personal injury to a third party, loss or damage to property, or financial loss if you or your business are found to be negligent. It will cover any costs and expenses associated with the claim, as well as any damages awarded to the third party.
- Product liability
Consumers are entitled to a level of safety under Australia’s consumer laws and claims against products may arise when these standards are not met. As a business, you are responsible for any product you manufacture, distribute, supply or sell so if the product is unsafe, harmful, defective or dangerous and causes injury, death or damage, you may be held liable. Product liability insurance provides cover if these occurrences arise as a result of your product’s failure.
- Professional indemnity
Anyone (not just doctors, lawyers or financial advisers) who offers service advice in a specialised field is expected to meet high standards of skill in their area of expertise. If a client suffers a loss – whether it is financial, physical or material - as a result of such advice, or your failure to uphold professional standards, you may be at risk of a breach of duty. Professional indemnity insurance provides protection against claims of negligence made by clients and will cover the costs and expenses of defending a legal claim as well as any damages that are awarded.