When running a business, you’ll typically hear about three key forms of liability.
They are as follows:
- Public liability: Refers to situations where your business is found liable to a third party for death or injury, loss or damage of property or economic loss resulting from your negligence (Claim example – this could be as simple as someone slipping on a wet floor and injuring themselves).
- Professional indemnity: Professional indemnity refers to advice-based businesses being held liable for professional negligence. Liability can apply if your client suffers a loss – material, financial or physical – directly attributed to negligent acts, errors or omissions on your business’s behalf (Claim example – written report made stating floor/carpet is completely dry, but it is not).
- Product liability: If any products you sell, supply or deliver happen to cause injury, death or damage to those who purchase them, this is an example of product liability. (Claim example – incorrect product applied to flooring, which then causes damage).
These three cover the key basics of your business’s potential liability. Public liability chiefly refers to incidents that occur from general business negligence, professional indemnity refers to the bad outcomes resulting from poor professional advice or professional negligence, and product liability accounts for the damages that may result from a product you sell/supply (and not a person).
Naturally, there are insurance policies for all of them. What is definite is that businesses that fail to take out appropriate liability insurance policies may face some serious financial strains down the line.
Regional Insurance Brokers are SCRIA’s preferred partner for Insurance needs, please give Mitch Binney a call on 07 4951 6200 or email [email protected] for an obligation free review of your current policies.
“Just paid my insurance through Regional and saved over 1200 bucks on my current policy. Checked by credit card and the payment is via an office in Mackay (of all places). Thanks SCRIA.
Justified three years membership in one swoop.”
Darryl Van Rooy | Roy Darvan Pty Ltd | December 2015