The hidden costs of equipment breakdown
Unreliable equipment can be the death knell for a business, with the costs of equipment failure and downtime tricky to accurately predict and calculate.
While public liability insurance isn’t compulsory for some business types and sectors, these actual cases may prompt you to consider this cover. And if you have it, ensure you review it regularly to better fit your business needs.
At the crux of public liability is negligence. You could be liable if your business has failed to take reasonable care in your day-to-day operations. If your negligence leads to injury or death of a person, or damage to or loss of another person’s property, then a customer or member of the public could make a claim. Your business could be out of pocket for the legal costs to defend a claim, and you may have to compensate the affected third party and pay their legal costs.
The latest figures from the Australian Prudential Regulation Authority (APRA) – for the 2021 underwriting (calendar) year – show a 15% increase in public and product liability claim payouts.
Increasingly, there is the potential for significant damages to be awarded, says the Australian Small Business and Family Enterprise Ombudsman Kate Carnell. In short, the chance of being sued for negligence can be unpredictable and expensive. However, the more common injuries include back and neck injuries as a result of slips, trips and falls.
A major public liability risk to businesses concerns visitors to your site slipping, tripping, or falling. Here are details of successful claims made against businesses in Australia:
While the building and construction industry ranks among the most dangerous for workers, these sites also present public liability issues for customers and the general public. Read about these successful claims:
The law requires you to take reasonable steps to ensure the safety of your customers, suppliers, community members, and their property when you run a business. Taking those steps and investing in public liability insurance can give you peace of mind to protect your business against claims. Reasonable steps should be outlined in a risk management program and could include inspecting and cleaning public areas, staff training and maintenance programs.
For small businesses and family enterprises, it can be difficult to secure public liability insurance, according to the Australian Small Business Family Enterprise Ombudsman, Kate Carnell. That’s why, whether you represent an SME or larger company, it’s good to talk to us. We can help you can access discounts on premiums, such as through bundling different policies into a package. Whether public liability insurance is compulsory or not for your type of business, it’s definitely worth looking into so you’re better protected from increasing risks.
Article supplied by OneAffiniti
Photo by Michael Marais on Unsplash