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Any organisation, from the largest corporation to the smallest church fete committee, must be covered by public liability insurance these days. Being prepared for a possible claim of negligence could save millions of dollars in settlement fees and thousands in legal fees. But just how do you get cover and what exactly are you covered for?
Different occupations need different cover
Public liability insurance is occupation, industry or situation specific. For instance, remedial massage therapists in Australia must be members of an accredited professional association before they will be covered by an insurance policy. In turn, their clients can only make claims on their health insurance if their therapist has public liability insurance.
For other organisations, public liability may be covered under a general business insurance policy. Once-off events can also be covered individually, which makes the annual church fete a little more economical. In many cases, local council’s for example, will not allow their facilities to be hired to groups who do not have public liability insurance and, often, an accompanying risk management plan.
There’s a surprising array of professions that need public liability insurance: community care workers, non-profit organizations, artists and other community groups. Even more surprising is how inventive the insurance industry is becoming, with many companies tailoring their policies to meet the specific needs of each occupation or event.
What’s covered?
Even the most savvy professional may not foresee all possible events that could lead to a claim of negligence being made against them. This is why so many industry-specific policies are being drawn up.
There are also many professional organisations that work with underwriters to develop these policies, so before you take out a policy find out first if there is a non-profit organization attached to your industry that has extra information to share to assist your choices.
Public liability insurance will normally cover an organization for injuries that are a result of workplace hazards, a client’s participation in a regular program (such as classes or seminars) or a mishap at a special event. Event organisers, members, directors, committee members, individuals or even volunteers can become personally liable in these cases, so even if you are just volunteering an afternoon of your time to a community group, make sure you’re covered by the organiser’s public liability insurance.
In many cases, insurers will cover community groups for all amounts claimed and so are unlimited. Other policies will cover a nominated amount, usually from $5 million to $20 million. This is usual for all kinds of practitioners.
In many cases, policies will be retro-active, which means that if a client who gets a massage in 1999 claims in 2005 that it harmed their back, the massage therapist will still be covered by their 1999 insurance, even if they are no longer insured or practicing.
Of course, always check the insurance policy for what it doesn’t cover. This may include such things as employment liability, product defect, libel and slander, asbestos, faulty workmanship, pollution, fines and penalties and treatment and dispensing.
