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Frequently Asked Questions About Liability Insurance

1. What is liability insurance / what does it cover?

Public liability insurance covers a person, a business, an event, a contractor – even a community building – for costs from legal action if they are found liable for death or injury, loss or damage of property, or economic loss resulting from their negligence.

 

2. What does Professional indemnity cover?

Professional indemnity insurance protects you from legal action taken against you if someone suffers a loss after following your professional advice or as a result of receiving your service. There are also specific types of professional indemnity insurance for certain professionals. For example, the medical profession will usually have medical indemnity insurance as a requirement of their professional registration or licensing.

 

3. Does General Property cover me if my tools are stolen?

Insurers offer Tools of Trade Insurance or what’s sometimes known as General Property Cover, for these events.
General Property cover is available for an extensive range of equipment including;

Tools of Trade
Light Machinery
Survey Equipment
Mobile Electronic
Mobile Medical Equipment
Photographic Equipment
Diagnostic and Measuring Equipment
Musical Instruments
Sports Equipment

General Property Cover is normally available for items you can carry or move away from your premise and items that are considered essential for your trade.

But it’s essential to check that your policy will cover your risk. So ask yourself, does it:
Cover for full theft in the open air?
Does it cover the full replacement value of your tools?
Cover for accidental loss?
Cover for accidental damage?
Cover for loss in transit?
Provide overseas cover if you’re working away.
Does it have a suitable excess?
And at renewal, does it include recent purchases and match the new values?

 

4. Does liability insurance cover my products?

Product liability insurance is designed for businesses that are involved in the production, supply, installation or sale of products to members of the public.

It helps protect against claims of personal injury or property damage that a third party suffers because a product you sell, assemble or supply has caused harm to a person or to their property.

To better protect product manufacturers, brokers will quote a broad-form liability policy that offers cover for public liability as well as product liability.

 

5. How do I cover myself if I get injured?

You should speak with a financial planner & arrange Income protection, alternatively arrange a personal accident and sickness policy.

 

6. Who do I contact if I need to make a claim?

If you use a brokerage like Ausure, you can contact us. We have a claims team who are experts in ensuring we get the best possible resolution for you. When dealing with an insurer directly it’s you vs the insurer – that’s the benefit in engaging Ausure as your broker, you will have us taking the fight to the insurer for you.

 

7. How much public liability do I need?

In Australia, insurers generally offer $5 Million, $10 million and $20 million cover options, but how much public liability insurance do you need? According to Adam Sloan, Broker at Ausure Insurance Brokers and owner of Insure Tradies, “It will depend on your occupation, risk exposure, and legal requirements but is an essential cover for ALL businesses, including small businesses, Sole traders and corporate entities.”

 

$5 Million Cover
$5 million liability cover will offer minimal protection. If you operate a business with little exposure to the public it may be sufficient for you. However, most insurance brokers would recommend a minimum of $10 Million liability cover as Australia has become increasingly litigious. While $5 Million may seem appealing because of the reduced premium, it is becoming less appropriate for businesses & will often not be enough to cover claims – particularly if they relate to personal injury.

 

$10 Million Cover

$10 million Liability cover will offer moderate protection and suit most businesses as a starting point. Particularly suitable for small businesses and sole traders.

 

$20 Million Dollars Cover

$20 million is a more comprehensive cover. Businesses that have high exposure to the public, or companies that enter a local, state or federal government contract or work on one of their facilities should be selecting the $20 million Liability cover.

 

$50 Million Dollars Cover

While $50 Million is not a standard option for most small and medium businesses, some international contracts require this higher amount of coverage if you do business with them.

To chat to us about your Public Liability Insurance, contact InsureTradies today for an obligation-free chat – we’re here to help.

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