Common Public Liability Insurance Myths

If you run a business, chances are that you’ve heard of public liability insurance. Liability insurance protects you financially if you cause damage or injury to a third party as a result of your actions at work, and is an essential form of cover. Despite it being one of the most well-known forms of cover, there are still quite a few misconceptions floating around about public liability insurance and we’ve heard them all! So, today we’ll be talking about common myths and giving you the facts!

Public liability insurance is compulsory

A lot of people assume that it’s a legal requirement to have liability insurance in place, and this isn’t actually the case in Australia. However, in some professions you won’t be able to get your license unless you have proof of cover and many employers won’t risk taking you on without liability insurance. Not to mention the general peace of mind which comes from having public liability insurance!

Liability insurance isn’t relevant to me

This is one of the most common myths we hear and there is an assumption that liability cover is only for trades services. No matter how low risk you think your business is, the unexpected can happen and it’s so easy to find yourself on the receiving end of a claim. All it takes is for a visitor to your office to slip over and injure themselves and you’re wide open to a claim.

I can afford to pay a liability claim

So many business owners underestimate the potential costs that could come with a liability claim from a third party. Remember that if you’re found liable following a claim, you could be up for medical expenses, rehabilitation costs, paying for specialist equipment, repairs and replacements. This could potentially run into the thousands, or even hundreds of thousands, of dollars. A liability claim can be devastating financially to your business, so don’t risk it.

Public liability insurance will cover injury or damage to employees

Your public liability insurance will cover for damage to property or injury of a third party, but it won’t cover you for damage or injury associated with your employees. Many employers assume their liability cover extends to their employees and then get a shock when they go to make a claim and find they’re not covered. If you want cover for your employees, speak to your insurance broker about other forms of insurance, such as workers’ compensation insurance which would be appropriate.

If you’re looking for public liability insurance in Perth, GSK Insurance Brokers can help. We’re in the business of making sure your business is covered, and we’ll conduct a thorough risk assessment to identify all of your areas of risk to ensure the best cover possible. For the ultimate peace of mind, leave it to our expert brokers.

For public liability insurance Australia, speak with the professionals at GSK Insurance Brokers today on (08) 9478 1933.

June 20, 2018

By Graham Knight

Founder and Managing Director of GSK Insurance (established in 1981). Graham draws upon more than 50 years’ experience in the insurance industry, working in both insurance and broking across various private, public and government sectors in Australia.