At one time, the United States was considered to be the most litigious society on earth, where you needed some form of insurance for virtually every activity, such was the propensity of the average person to sue. These days that mentality appears to have spread across the ocean and is now becoming entrenched in Australia, where the number of insurance claims has skyrocketed over previous years. In fact, the average settlement size appears to be on the upward trend as well, so there is every reason for you to consider getting specialised insurance if you are planning to set up in business by yourself. What do you need to know about public and products liability insurance to try and mitigate your risk?
Vulnerability
Virtually every business will have a certain amount of risk as soon as they open their doors, and those that operate a traditional "bricks and mortar" type of operation are especially vulnerable. If you invite somebody onto your premises to do business with you and they sustain an injury when they are there, you are likely to be liable for their compensation. Of course, it is very difficult to foresee every type of circumstance and accidents certainly do happen, but be that as it may, they will incur costs and injuries. As this incident happened on your business premises, they will turn to you.
Steps
Just remember that an insurance policy does not mean that you can be blasé or fail to take adequate measures to protect people or property. If it is found that you were not suitably prepared and had failed to take reasonable precautions, you may be liable for fines imposed by regulators or local government authorities as well.
Broad Protection
Public liability insurance is a specialised product that is meant to cover any liability you may have to the public as a third-party entity to your business. This will include any costs that they incur in court or through having legal representation and will also cover the cost of any damage to their particular property.
Extent
This coverage can include any form of injury up to and including death, but it can also provide protection against other, related risks. For example, some policies will cover libel and slander or wrongful detention or imprisonment in admittedly unusual circumstances.
Additional Cover
You may also want to have a word with your insurance broker about product liability coverage as well. This can often be included in the public liability policy and help to protect you against property damage or bodily injury arising from the failure of any goods that you may have sold or supplied.
Share29 March 2019
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