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In the Spotlight – Public Liability Insurance and Damage to Other People’s Property

  • integralmedia
  • September 10, 2024

Damage to other people’s property can happen when a car is being repaired, you’re cleaning a fur coat, or when a tradie on site backs into a generator, any of which could cost thousands to repair or replace. Public liability claims for property damage, slip and fall incidents, and injuries in public places are common across Australia.

If you have other people’s property in your care or custody or are potentially exposed to damaging visitors and customers (third parties), you should have public liability insurance to protect against negligence and breaches of duty of care under the legislation in your state. Causation of permanent injury can lead to significant compensation payouts from your insurance company.

What Does Public Liability Insurance Cover

When you damage another person’s property, public liability insurance covers:

  • Payment of the cost of repairs or replacement of the damaged property due to premises liability or unsafe conditions.
  • Payment of loss of income or additional costs caused to the other person or their business, whether they are property owners or residents.
  • Legal defence costs and damages awarded by a court, if needed.

Proper incident reporting is crucial for any liability claim involving injury or property damage.

Common Scenarios Leading to Property Damage

Damage to other people’s property can happen when you’re unloading a truck and dropping the load, repairing a car and having an accident when test driving, or damaging your leased premises.

Business people conversating in office

Factors to Consider When Choosing Public Liability Cover

When considering insurance coverage, some factors you’ll need to think about include the type of business and how many employees you have working for you. Other considerations include whether any members of the public visit your business, as well as any requirements from the local council, your clients, or the landlord. Safety concerns, medical malpractice, and wrongful death are all relevant considerations.

The Importance of Public Liability Insurance

Public liability cover is a crucial aspect of commercial insurance, protecting businesses from financial risks that could arise if you damage a third party’s property. Protecting yourself and your business financially is key to having a successful business.

If you are looking for information and advice about insurance options, contact Adroit Risk Adviser today. Our advisers work closely with clients to understand their unique needs and find suitable public liability coverage to protect them and their businesses. We specialise in helping businesses of all shapes and sizes find the right insurance cover and cost to meet your budget.

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