In business, the phrase “liability exposure” isn’t just a buzzword – it’s a reality that every entrepreneur and small business faces. At its core, liability exposure can be defined as the potential financial or reputational harm a business might suffer due to unforeseen events or mishaps.

There are many legal liabilities that come with business ownership, which is why many business owners look for ways to reduce liability claims against their business and minimise Public Liability risks.

Liability can be a confusing term for small business owners. You’ve probably heard of Public Liability insurance, but what about Legal Liability?

Cyber Liability insurance has been available since at least the year 2000, however many small businesses in Australia are not taking advantage of the protections a policy can provide. According to one survey, just 40% of businesses1 have any sort of cover in place.

If you’re a sole trader or small business owner, there’s no doubt you’re aware of the importance of protecting your business and your customers with Public Liability insurance. It offers protection should a customer, supplier, or even member of the public, sue your business for personal injury, death, or damage to their property. And whilst you probably take every care not to injure someone or damage their property, it doesn’t mean you won’t be found negligent should an unwanted accident occur, or someone attempts to make a claim against you. As cliché as it sounds, accidents happen. If you don’t have Public Liability insurance you face the risk of being out of pocket for hefty legal and compensation costs that can potentially cripple your business.

Public Liability? Tick. Professional Indemnity? Sorted. But there’s one business insurance that often flies under the radar — Statutory Liability insurance.

Public Liability and Professional Indemnity are two of the most common types of business insurance in Australia. They both cover compensation claims, but the main distinction is the types of events and risks covered.

Product Liability claims and Product Liability litigation against your business are no joke. In fact, they may severely impact your small business and damage the upstanding reputation you have worked so hard to create around it. Product Liability claims may even potentially push your business beyond the point of no return, which is why Product Liability risk management is a popular choice for many business owners.

As a small business owner, you may already hold Public Liability insurance*. But do you know exactly what your policy does and does not cover?