If you operate a business or property owner that owes a duty of care to the public may be held accountable for any accident that occurs on their property or as a result of normal business operations. This increases the risk of a potential claim, which can put your financial position at serious risk. Public Liability Insurance can help protect you against this kind of claim and provide peace of mind so that you can get on with running your business without constantly looking over your shoulder in fear of litigation. But what is public liability insurance? What does it cover? And when do I need it?
What is covered under Public Liability Insurance?
Things can—and do—go wrong even with the greatest policies and processes in place. Without Liabilities Insurance, firms would be on their own to deal with these risks, risking big expenses and long-term damage to their reputation.
The policy covers third-party liability claims and the costs of repairing or replacing damaged property, such as if you were remodelling a client’s home and knocked down the wrong wall by accident. Also includes compensation for personal harm or death to third parties.
This means that if you or your staff cause harm to a third party on your premises, then Public Liability Insurance Nz provides cover. Public liability insurance can cover businesses that engage with customers or the general public.
Why do I require Public Liability Insurance?
Every business can have a third-party claim against them at any time. Many events, such as slips & trips on your shop floor that lead to injury or products falling off shelves in your supermarket that cause customers to sustain injuries, are examples of such claims.
You may also be held responsible for personal injury if a customer is poisoned by food poisoning from your restaurant or a family pet dies when bitten by one of your employees while they are out walking. Public liability insurance coverage protects you in these cases and others like it where you may be liable for an accident caused by you or one of your staff.
Consider public culpability in the following situations:
Tradies \sRetailers \sProfessionals
Café and restaurant owners.
Businesses may lose valuable contracts if they don’t have them, as clients occasionally demand confirmation of insurance.
When would I require Public Liability coverage?
If you own or work in a business that might pose risks to people, property or animals in your community, public liability insurance is a must. If your business causes an injury to someone’s health or damages their property, a claim could be made against you for compensation. Public liability insurance covers such claims. Public liability insurance protects you if any kind of incident takes place at your premises. It offers financial protection if you cause damage to another person’s property (for example, by fire). You can also take out additional cover for stock that you keep on your premises – public liability insurance will provide compensation for any products damaged as a result of fire or flood. Businesses that work with chemicals require specific types of public liability coverage as chemicals present potential hazards to surrounding properties and communities.
What if you do not have Public Liability Insurance?
When you have a range of dangerous equipment in your home or business, public liability insurance is vital. Should you be found to be liable for damage that you caused – intentionally or otherwise – without public liability insurance in place, it could lead to financial ruin. With Public Liability Insurance NZ coverage protects against accidental damage to property, meaning your home will be covered should it suffer damage through misuse of machinery etc. While if any member of staff accidentally damages a customer’s property (e.g., a broken plate), then your Public Liability Insurance NZ would cover their legal fees as well as yours.
