Product Liability Insurance For Online Retailers

Small business owners on average in the 2018/19 Financial Year paid around $63.53 per month^ for Public Liability insurance through BizCover. Public Liability Insurance is one of the most common types of insurance for businesses.

When it comes to the pricing of Public Liability insurance, there isn’t a one price fits all. There are a variety of industries and occupations, each with different risk factors that can impact the pricing greatly. Some of these key factors include:

• The type and nature of your business
• Your business turnover and size
• The amount of insurance cover your business needs

Additional factors that determine the cost of your Public Liability insurance policy include:

• The location of your business
• What is included and excluded in your policy
• The insurance provider you choose

The most accurate way to find out the cost for your business is to simply get an instant online quote.

Public Liability insurance is designed to provide protection* for you and your business in the event a customer, supplier or a member of the public are injured or sustain property damage as a result of your negligent business activities.

While it is not a legal requirement in Australia for most businesses, there are some situations where it may be mandatory for you to have you an active Public Liability policy before you can  operate. For example, it may be a contractual requirement to have before you are allowed “on site”.

No matter how much care you may take, if your business interacts with clients, suppliers or members of the public, there is always the potential for a claim to occur.

You may need to consider Public Liability cover if any of the following apply to your business:

• You have customers, suppliers or members of the public who visit your business premises, e.g. diners who visit your cafe, or clients who visit your office, whether in a commercial building or home-based office
• You manufacture and/or sell any kind of products, e.g. food, beauty products, furniture, clothing or household items
• Working at your client’s site, e.g. a tradesperson carrying out repairs or work in other people’s homes
• If your business hosts or participates in public events, like a stand at a tradeshow attended by members of the general public

One of the first things to consider when calculating which level of Public Liability insurance your business may need is to think about the risks your business faces and any industry or contractual requirements involved.

While it would be nice to be told the exact amount of cover you should have, the decision is ultimately up to you.

If you work with contracts, these commonly stipulate the minimum amount of Public Liability cover your business must hold to comply with the contract. Professional bodies and industry associations may also require members to maintain a minimum amount of Public Liability insurance to become a member or to meet licensing requirements.

Take the time to consider the amount of work that you perform and the appropriate amount of financial protection you would need in the event a Public Liability claim is made against you.

With BizCover there are three levels of cover (limits of liability) available to select: $5 million, $10 million or $20 million.

The appeal of having the freedom to be your own boss is why so many Australians operate as a sole trader, but it is not one that comes without its own risks. Unlike working for a company, the reality is when things go wrong and a claim is made, you could be held responsible and it’s your back pocket that could be left financially destroyed.

An unplanned event could not only put your personal finances in havoc, but you could end up shutting up shop for good. Fortunately, with the right insurance in place, not only will you have a solid financial safeguard in place, but protection for your hard-earned reputation too.

Public Liability insurance is a popular type of insurance amongst sole traders. As a small business owner you have a legal responsibility to take the right steps to create a safe environment for third-parties when they interact with your business.

Public Liability insurance is designed to provide protection for you and your business in the event a customer, supplier or a member of the public become injured or sustain property damage as a result of your negligent business activities.

The short answer? No. Each type of insurance provides specific cover for very different kinds of business risks.

Business insurance* is an insurance package designed to provide cover for your business contents, stock, tools and commercial premises when an insured event occurs (such as fire, storm, theft or even accidental damage). A Business insurance package can also cover your portable equipment, glass and for loss of revenue due to business interruption in specified circumstances.  It also offers the option of selecting public liability cover but that is not automatically included.

Public Liability* insurance is designed to provide protection for you and your business in the event a customer, supplier or a member of the public are injured or sustain property damage as a result of your negligent business .

If your business manufacturers or sells products you may also need to consider Product Liability insurance. Product Liability insurance* protects your businesses against claims by third parties relating to property damage or personal injury caused by your products.  It typically forms part of a Public Liability policy.

Public Liability insurance can be purchased as a stand alone product or as part of a Business insurance package.

One of the first steps you need to take in lodging a claim  (or to report a circumstance which may lead to a claim) is to complete a claim form – please click here to download.

To assist with the processing of your claim and to avoid delays, please attach all the supporting documents you have, which may include original invoices, receipts, manuals, pictures, reports and replacement quotes.

Once you have completed the form, email it to: claims@bizcover.com.au and we’ll manage the process directly with the insurer.

Public Liability and Professional Indemnity insurance both offer different types of cover, for different kinds of risks your business may be exposed to.

Public Liability insurance is designed to provide coverage for legal fees and compensation costs if a customer, member of the public, or a supplier claims against you for injury or damage to their property as a result of your alleged negligent business activity*.

This differs from the type of coverage Professional Indemnity insurance* provides. Professional Indemnity insurance focuses on protecting you against losses claimed by a third party due to alleged or actual negligence or errors in your professional services or advice.  Professional Indemnity insurance will meet the associated compensation payable to a third party together with your defence costs (which can include legal costs, investigator costs and expert fees).

If your business requires having clients visit your premises, or you going to visit them, providing your advice and services, then Public Liability and Professional Indemnity insurance may be two important forms of coverage your business needs to consider.