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A Guide to Public Liability & Professional Indemnity Insurance in Australia
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Businesses seek security measures to combat growing work hazards that hinder their routine life and might affect the enterprise's productivity as a whole. To know the right possible option that helps you provide maximum coverage to help sustain your business against any unwarranted claims should be prioritized by enterprises and businesses all around. Whether you are an independent professional or a business owner, you must protect yourself and your business by getting insurance. Public liability and professional indemnity insurance are two popular categories of business insurance in Australia. Many people do not know the exact difference between these and stay confused about which one to choose according to their business. In this blog, we will discuss the difference between public liability and professional indemnity insurance in Australia.
What is Public Liability
As a business owner who wishes to strive for regular sales and revenue should always be aware of any impending threats that can thwart your plans due to tribulations occurring when a third party claims to have sustained injuries or any defamation suit that follows where you become liable to pay and compensate the concerned employee. This can temporarily make your business proceedings go through a mild pause or can result in lawsuits that can hurt your image in the public domain. Public Liability insurance protects your business if anyone gets hurt or sustains property damage due to your negligent business activities. That person could be anyone including your direct clients, customers, suppliers, delivery people, or just passersby, the damage or injury can be the result of your business-related activities or products involved in your business. Most of the public liability policies also cover product liability that covers the damage or injury by the products you sell, deliver or supply. With public and products liability insurance, you can provide financial protection to your business against all the claim costs.
Who Should Get Public Liability Insurance Australia
In almost every business, things can go wrong and you may have to pay for the expensive claims of personal injury or property damage. You may also need to bear the legal costs for defending a claim. Public liability insurance in Australia protects your business by providing cover against these claims. If you own a business that involves interaction in public places or the public pays a visit to your premises, public liability insurance is recommended for you. Get this insurance if you -
- You are a tradespeople or contractor who visits their clients’ premises or run the business from home
- You own a business that has a premise including an office, showroom, shop
- All businesses that interact with customers or the public
If your business makes you susceptible to circumstances where there is a high probability of encountering issues and problems that can be inflicted on the third party through your business-oriented actions then a business owner becomes liable to cover expenses and compensate the concerned person. This can be an additional work hazard that comes with the usual business/industries and can be tedious for the owner to maneuver and manage through. With Sure Insure Australia, customers and clients dealing in all professional niches can get their quotes tailor-made to your needs and requirements.
If your business makes you susceptible to circumstances where there is a high probability of encountering issues and problems that can be inflicted on the third party through your business-oriented actions then a business owner becomes liable to cover expenses and compensate the concerned person. This can be an additional work hazard that comes with the usual business/industries and can be tedious for the owner to maneuver and manage through. With Sure Insure Australia, customers and clients dealing in all professional niches can get their quotes tailor-made to your needs and requirements.
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Nilima Pokala
What Does Public Liability Insurance Australia Include
If your business was found negligent in a case, public liability insurance can cover the compensation awarded to the injured/impacted person including the complete legal fees. Like all insurance policies, you need to check to see what your policy covers and any limits. A typical public liability insurance policy may cover you for most of the following situations:
- Legal costs for defending or settling a claim
- Any loss or damage of any property or goods of a third party during your service or when you have the goods in your control
- Any accident taking place on your premises and someone gets injured. It may include first-aid expenses.
What is Professional Indemnity
Business encompasses a wide range of sales and revenue processing that sometimes may include a business that earns its livelihood through giving expert advice on versatile matters. Such businesses can include consultancy firms, psychological practice, clinics and healthcare professionals, etc. Sometimes a business can sustain a financial loss due to misinterpretation of advice given to a client, omission of a particular task, or being negligent in duties. Professional indemnity cover becomes quite useful in such precarious situations. Professional indemnity insurance covers businesses that offer advice or services in exchange for a fee. You may also know it by the names of Professional Liability cover or Errors and Omissions cover. If there is any claim against you for being negligent or breaching any duty, committing an error, or omitting any task, while performing your duty as professional advice or service provider, this insurance will cover them.
Who Should Get Professional Indemnity Insurance in Australia
If your business involves offering advice/service to a client or making the decision on behalf of a client, professional indemnity insurance is for you. Professionals like doctors, midwives, lawyers, architects, real estate agents, and psychologists are the ones who require this insurance for their protection. Besides them, some professionals like accountants/bookkeepers, tax agents, personal trainers, graphic designers, fitness instructors, etc., should get industry-specific professional indemnity insurance. Professional indemnity insurance in Australia may also cover IT professionals such as business analysts, hardware engineers, network support executives, project managers, software and hardware sales executives, website designers.
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Nilima Pokala
What Does Professional Indemnity Insurance in Australia Include
If there is a claim against your business for (actual or alleged) mistakes or breach of professional service and advice contracts, professional indemnity insurance will cover your business.
Which One to Choose Between Public Liability and Professional Indemnity in Australia?
If you go through the above discussion on public liability and professional indemnity insurance, you will understand that these two cover you against different types of risks. If you are a contractor, consultant, or own a business, you may need one or both of the policies. Sole traders, contractors, or consultants like engineers, ecology advisors, wedding planners, tree surgeons, image consultants, and event organizers might need to get both the insurances under one policy. Medium and larger businesses may opt for both public liability and professional indemnity insurance policies separately. Apart from them, professionals like technical writers, consultants working in the education, marketing, immigration, and compliance sectors will need professional indemnity insurance and public liability insurance.
How Can Sure Insure Help You Provide The Best Insurance Covers That Fits All Your Business Needs? Sure Insure Australia is one of the leading insurance brokerage firms that formulates the best insurance policies that fit the needs of each client with utmost care and attention.
- Sure Insure understands the daily trials and tribulations of running a business and the expected set of risks an owner is often susceptible to, hence there careful analysis of business scale and operations make them one of the best insurance providers in Australia
- Sure Insure have comprehensive plans for each business module and devises strategies that are in sync with businesses goals and ideals
- Sure insure works effortlessly well to deliver the best services and covers that fit the budget and needs of each independent work enterprise.
Connect with Sure Insure Australia to get your personalized quote on your selected insurance cover that guarantees maximum coverage and security for your business.
General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.
All information above has been provided by the author.
All information above has been provided by the author.
Nilima Pokala, SureInsure Insurance Advisors, ABN 11 642 332 698, AFSL 525177
This article originally appeared on SureInsure Blogs and has been published here with permission.
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