As a business owner, you have a certain duty of care to third parties to ensure your operations, products and services do not cause any undue grievances.
With customers, workers, suppliers and the public all requiring attention, it can be difficult to keep track of your obligations and prevent every mishap from occurring.
This is why business liability insurance is a vital consideration for any individual who owns and operates an enterprise in Australia. This cover protects your company from the penalties, obligations and other risks related to a liability.
In this case, liability refers to the financial implications that result from a breach of duty or failure to take action in the course of normal business operations. This means that any action you do or do not take could have a serious consequence and you need to be protected.
There are several different forms of liability that can affect many types of businesses. Outlined below are the four key considerations you should keep in mind when taking out liability insurance products in Australia:
Perhaps the most well-known relevant insurance policy is public liability. This cover protects you and your business against the financial risks related to the injury or death of a third party, or the loss and damage to their property.
Public liability can also cover any economic losses a third party may incur that directly relate to your company’s actions or negligence.
If your business sells, repairs, services, supplies or delivers goods, product liability insurance can protect you against any damage, death or injuries that these products may cause.
Even when you have thorough risk management strategies in place, mistakes can occur that result in products not behaving as expected. In this situation, you will need product liability to mitigate the damage to your enterprise.
As a person who provides advice or a service, professional indemnity insurance is crucial. This cover protects your business from any legal action that may result due to professional negligence. If your clients suffer a material, financial or economic loss that can directly be related to your services, professional indemnity will ensure that any following penalties and fines are not taken out of your own pocket.
In Australia, any employing business needs to have some level of workers compensation insurance in place.
If an accident was to occur and it was found that you or your staff had not taken reasonable actions to ensure the safety of your workers or visitors on site, you could be found liable for any medical costs and additional penalties that may occur.
For business owners, knowing which liability insurance is right for you is important. For more information, talk to Bruce Insurance today.