Does Public Liability insurance cover employees?

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?

There is a common misunderstanding from business owners that Public Liability insurance covers their employees if the employee’s injuries are caused by their work. However, this kind of event may actually be covered by Workers Compensation insurance.

What does Public Liability insurance cover?

Public Liability covers you and your business if you are held responsible for personal injury to a third-party, or damage to their property, in the course of business.

If someone slips and falls in your business premises, they could sue you if they think that your business was responsible for their injuries. Public Liability protects your business against the financial impact such events can have. It can cover legal fees for defending yourself, as well as any compensation that you may be required to pay.

What is not covered by Public Liability insurance?

If your business is responsible for a claim that does not include injury or damage to property, your Public Liability policy will not cover the loss.

Public Liability will not cover you or your company if you have knowingly or deliberately damaged or injured someone else or their property. There are also some incidents that are not covered by Public Liability because they fall under a different business insurance policy.

Public Liability does not cover injuries to your employees at work. This would typically be covered by Workers Compensation insurance.

What is Workers Compensation Insurance?

Workers Compensation insurance covers your employees in the event of an accident at work. This type of business insurance is intended to cover the medical costs and rehabilitation, as well as the employee’s income loss while they are not able to work due to the injury.

Workers Compensation is required by law in Australia for any company with employees. The requirements vary, so be sure to check with your local authority for more information.

The similarities between Public Liability and Workers Compensation insurance

Public Liability and Workers Compensation are similar in that they are insurance policies that cover injury. Both policies cover legal costs and compensation for businesses that are found liable.

The differences between Public Liability and Workers Compensation insurance

Workers Compensation will only cover workers (including contractors and sub-contractors in certain circumstances) and provides coverage if they sustain an injury during the course of their employment.

However, Public Liability is designed to cover third-party injuries caused by your products or business activities. Customers, visitors, or suppliers are covered by Public Liability, but not your employees.

In addition, Workers Compensation only covers property damage caused by a company’s actions or omissions. If an employee’s personal property is damaged during the course of work, no coverage is provided under Workers Compensation.

Make business insurance easy with BizCover

If you are looking for more information, our business insurance experts can help you decide if Public Liability or Workers Compensation is the best fit for your business.

Compare competitive quotes from leading Aussie insurers online and get covered in just 10 minutes. Give us a call on 1300 920 868 to hear more about how BizCover can assist your business.