Discover how Business Liability Insurance may help protect your small business from claims involving injury, property damage and legal costs.
Imagine this . . . A customer walks into your shop and slips on a wet floor, or you're working at a client's premises and accidentally damage an expensive piece of equipment.
Neither situation is intentional, and both may happen during the course of a normal business day.
The affected person or business may be able to make claims against your small business, which may result in costly legal fees as well as the obligation to pay for the damage or injury you may have caused. This is where Business Liability Insurance may play a role.
Running a small business comes with enough things to think about. While you can't always prevent the unexpected, understanding your liability risks and insurance options may help you be better prepared when something goes wrong.
Because every operation is unique, cover options and eligibility depend entirely on your individual business circumstances and specific insurer criteria.
Business Liability, also commonly known as Public Liability, is designed to protect your business against claims resulting from accidents or injuries that occur as a result of your business activities, as well as accidental damage to property owned or controlled by someone else. Business Liability insurance may protect you from the financial loss of associated legal costs and compensation.
Depending on your business, you could be exposed to liability risks through customer visits to your premises, work performed at a client's property, the services you provide or interactions with members of the public.
For example, a claim could arise from:
Business Liability Insurance isn’t a legal requirement for every small business. However, certain events, venues or contracts may require you to have a specific level of cover.
Even when it isn’t mandatory, it’s worth considering how your business could respond financially if a customer, client or another third party makes a claim against you.
The amount of cover suitable for your business will depend on factors such as your industry, business activities and contractual requirements. At insurance.com.au, Public Liability cover is available with limits of $5 million, $10 million and $20 million.
Ready to explore your options?
No business owner expects an accident to happen. But understanding your liability risks and insurance options can help you feel more prepared when the unexpected happens. You can't always predict what might go wrong, but taking steps to protect your business can help you reduce financial pressure, allowing you to focus on running your business.
Get a fast quote online or speak with our team at 1300 468 730 to learn more about your options.
In business, liability refers to a legal responsibility for injury, damage or loss caused to another person or their property. If your business activities result in injury or property damage, a claim may be made against your business.
Business Liability Insurance, often referred to as Public Liability Insurance, is designed to protect businesses against claims from third parties for injury or property damage arising from business activities.
While Public Liability Insurance is not legally required for every sole trader, it may be worth considering if you interact with customers, visit client sites, provide services or work in public spaces. The suitability of cover will depend on your individual circumstances and insurer criteria.
Business liability and public liability are terms that are used interchangeably. However, for business insurance, a wider range of cover options are available like portable contents and tools of trade, building and contents, theft, money, cyber insurance that may be beneficial to running a business.
This article has been prepared by insurance.com.au Pty Ltd (insurance.com.au) ABN 27 163 909 073, an Authorised Representative (AR Number 443422) of Community Broker Network Pty Ltd ABN 60 096 916 184 AFSL 233750.
The information in this article is of a general nature and does not take into account your individual objectives, financial situation or needs. Before making a decision based on any of the information, you should consider whether it is appropriate to your particular circumstances. You should also obtain and consider the Product Disclosure Statement (PDS) and, where available, Target Market Determination (TMD) before making any decision to acquire a financial product. These are available at https://www.insurance.com.au/important-documents.
The information is current at the time of publication. While every effort has been made to verify the accuracy of the information, insurance.com.au, its officers, representatives, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this material for any loss or damage suffered by any person directly or indirectly through relying on the information.
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