You may think you’re well covered, but your business may be underinsured or even uninsured if something goes wrong. If so, recovery could be very difficult.
On a basic level, a liability refers to your responsibility to others. Liability insurance will protect you and your business against claims arising from injuries or damages to other people or property that result from some aspect of your business. Basically if someone makes a legal claim against you, you will be financially protected and the insurance will cover the associated costs rather than you having to find the cash to cover it yourself.
Types of liability insurance that you might consider as a business owner include public liability, product liability and professional indemnity insurance.
Public liability
Liability arises out of a duty of care to the public and this type of insurance is particularly relevant for businesses that have customers or clients visiting their premises, as the business has a responsibility for the safety of anyone on their premises.
Public liability insurance covers you 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.
If a claim is lodged against you or your business, public liability insurance will cover any costs and expenses associated with the claim, as well as any damages awarded to the third party.
Product liability
There is a level of safety that consumers are entitled to expect under Australia’s consumer laws and claims against products may arise when these standards are not met.
As a business, you are liable for any product you manufacture, distribute, supply or sell. This means that if for some reason the product is unsafe, harmful, defective or dangerous and causes injury, death or damage, you may be held liable.
Product liability insurance will provide you with cover if any of these things happen to another person or business as a result of your product’s failure.
Professional indemnity
As a professional, you are expected to meet high standards of skill in your area of expertise. If a client suffers a loss – whether it is financial, physical or material – as a result of your advice, or your failure to uphold professional standards, you may be at risk of a breach of duty.
Professional indemnity cover protects you against claims of negligence made by clients and can cover professionals across a range of industries. A professional indemnity policy will cover the costs and expenses of defending a legal claim as well as any damages that are awarded.
While traditionally, ‘professions’ were limited to a few well-known occupations, such as doctors, lawyers and financial advisers, the definition has now changed to include any person who offers service advice in a specialised field. For some professions, Professional Indemnity is mandatory, for others, optional. Click here for Professional Indemnity Insurance Quotes
Any advice that may have been given is general advice only, please be aware that we have not taken into consideration your needs, objectives or financial requirements. Before deciding to purchase a financial product you should consider the appropriate Product Disclosure Statement to ensure the product is suitable for your needs.
insuretradies.com.au operated by Insure 247 Pty Ltd ACN 612944215 is an Authorised Representative of Ausure Pty Ltd ABN 94 096 971 854 AFSL 238433. If you a make purchase from insuretradies Referal Partners Insure247 Pty Ltd will be paid a fee the amount of which will vary according to the term of service
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± Price will depend on cover required, your occupation, experience, postcode and turnover
Δ Not all insurers will offer quotes for all occupations
Any advice that may have been given is general advice only, please be aware that we have not taken into consideration your needs, objectives or financial requirements. Before deciding to purchase a financial product you should consider the appropriate Product Disclosure Statement to ensure the product is suitable for your needs.
insuretradies.com.au operated by Insure 247 Pty Ltd ACN 612944215 is an Authorised Representative of Ausure Pty Ltd ABN 94 096 971 854 AFSL 238433. If you a make purchase from insuretradies Referal Partners Insure247 Pty Ltd will be paid a fee the amount of which will vary according to the term of service
Carpenters have some specific insurance needs based on the risk associated with the construction industry, the following checklist will help you understand the risks.
1) Product Liability Product Recall
The use of lower-quality materials, not following specifications or building codes and Defective work may result in substantial bodily injury or property damage claims. Make sure your policy has you covered.
2) Fire and Perils General Property
The materials used like wood, sawdust, chips, shavings, adhesives, paint, lacquers, solvents and stains etc, increases the fire load and fire risk exposure in the premises and at the contract site. Tools are often stored on utes or left onsite overnight, are they covered?
3) WorkCover or Workers’ Compensation
If you have employees you need to check the local workers compensation requirements for your state. In some states if you are self employed or a working director you may not qualify for workers compensation, you have to consider if you get sick or injured and can’t work for a period of time how would it impact your financial situation, if you don’t qualify for cover maybe look at Income Protection Insurance.
4) Machinery Breakdown
Could you continue to work if your machinery was damaged, destroyed or broke down? Get our team to look at cover to get back on the job a quick as possible.
5) Public Liability
Onsite your exposure to the public may be limited, however work away from premises is a major risk. Third parties may be injured by work activities, machinery or falling materials.
Any advice that may have been given is general advice only, please be aware that we have not taken into consideration your needs, objectives or financial requirements. Before deciding to purchase a financial product you should consider the appropriate Product Disclosure Statement to ensure the product is suitable for your needs.
insuretradies.com.au operated by Insure 247 Pty Ltd ACN 612944215 is an Authorised Representative of Ausure Pty Ltd ABN 94 096 971 854 AFSL 238433. If you a make purchase from insuretradies Referal Partners Insure247 Pty Ltd will be paid a fee the amount of which will vary according to the term of service
