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Scope of public liability insurance
Public liability insurance is a broad area and can protect a large range of businesses and not-for-profit situations. It covers a wide range of risks and circumstances, including legal costs for defending a claim and payment of settlements to injured persons. Level of cover needed depends on the nature and size of your business or project. Policies can range from a short period of one day (useful for event organisers) up to a year, and value of policy can be as much as $10 million.
In addition to providing a fundamental service to businesses of all sizes, public liability insurance is also suitable for not-for-profit community groups and event organisers, safeguarding them against claims from members of the public. It assists organisations in meeting legal liabilities, such as paying compensation to a third party for injury and/or property damage accidentally caused during regular business activity. The policy also covers legal costs associated with defending a claim and ensures that settlements to injured persons are paid, covering a wide range of risks and circumstances. The claims fall into two distinct categories of property damage and personal injury: physical & psychological.
Public liability insurance is essentially a voluntary type of indemnity, however it is encouraged by the Government and may be compulsory in some countries, even varying from state to state. Further information is available from The Insurance Council of Australia or your state Government.
Application of public liability insurance
Ideally suited for not-for-profit community organisations and individuals, public liability insurance is also suitable for all business types (from small ventures to large commercial corporations). The cover may also suit:
- Drama and music groups (including performers, musicians, bands and entertainers)
- Dancers and dance schools
- Sporting groups, coaches and instructors
- National and state sporting bodies
- Citizen associations
- Event organisers, including creative arts and hobbies
- Religious organisations
This type of cover is particularly applicable to events with a large number of people (third-parties) attending, especially sporting events, with further cause to undertake such a policy if the event in question has an alcohol licence.
Event insurance
Event liability insurance (sometimes called “special event liability insurance” or just “special event insurance”) is a type of public liability insurance that can be used to provide extra protection for most special events, such as music concerts, exhibitions, theatre performances, fairs and fetes, animal shows, festivals and many more. Policies may cover:
- Weather
- Event cancellation
- Entertainer liability
- Spectator liability
- Workers compensation
- Liquor liability
- Property or equipment
- Image protection
- Audience participation insurance
- Specialist tuition indemnity
- Venue insurance
- Costumes & instrumental damage cover
Public liability insurance is important for nearly all businesses, even those that come into contact with the public infrequently or under indirect circumstances. It is best to be covered against the unexpected rather than risk expensive legal action if a member of the public is aggrieved by your company’s actions. All in all, public liability insurance should be a top priority for any business, organisation or special event wishing to avoid potential catastrophe.
