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Public and products liability insurance vs professional indemnity

Last updated on October 26, 2023
If you’re looking to start or own a business, you might have heard that you need to get public and products liability cover. If you’re a professional, such as an architect, bookkeeper, or marketer, you may have also heard you need professional indemnity insurance. But what risks do these kinds of insurance cover, and why are they so important? This article contains information to help you consider what your business may be accountable for.

Public liability insurance

Public liability insurance protects your business if a member of the public is injured or has their property damaged while dealing with your business. Public liability insurance covers the cost of compensation you’re liable to pay, in addition to covering reasonable legal fees incurred to defend a claim against you.

If your business has a storefront, such as a café, hair salon, or fashion retailer, you owe a legal duty to members of the public that visit your premises. In the same way, if you visit your customer's property, for example to complete gardening or electrical work, you owe a legal duty to both your customer as well as the general public. These duties are often known as public liability - the liability your business has for the effect of its actions on property or members of the public.

No two businesses are alike, and each will have differing insurance needs. In some cases, public liability cover isn’t optional. For example, if you perform work as a contractor on behalf of another company, they usually require you to hold public liability insurance. Similarly, if your business premises are located in a shopping centre or mall, centre management will require a certain level of public liability cover.

Whether you’re starting a business or already established, it’s important to identify and manage potential risks to customers and third parties that may exist within your business. But no matter how prepared you are, accidents can happen. Public liability insurance may help cover your business against compensation it’s legally required to pay for death or injury to customers or third parties, or damage to their property.

Learn more about Public and Products Liability and what it covers.

Products liability insurance

If your business manufactures, imports, installs or even repairs products, there may be a risk that these products could cause injury to the customer or a third party, or damage to their property. This could result in a legal claim brought against your business, seeking compensation for injuries incurred or property damaged.

As with public liability insurance, you need to carefully assess what your business’s exposure is to potential products liability claims and take appropriate steps to manage those risks. Products liability cover could insure your business against legal liability to pay compensation.

We offer Public and Products Liability insurance, which may help cover your business against the kinds of claims discussed above. Our Public and Products Liability insurance includes indemnity limit options of $5 million, $10 million and $20 million.

Professional indemnity insurance

If you provide services or advice for a fee in a professional capacity, you may want to consider professional indemnity insurance. As a professional, you have a responsibility to your clients to perform your service with due care and skill. If one of your clients makes a claim against you for negligence, error or misrepresentation, then you may face expenses including legal fees and any compensation awarded.

You may be surprised by how many occupations have this responsibility to their clients. Among other occupations, professional indemnity insurance can cover real estate agents, public relation consultants and even travel agents. Professional indemnity insurance may help cover your business if a claim is made against you.

We offer Professional Indemnity insurance through the Allianz Office Pack, available when you call our specialist small business team on
1300 131 000.

Want to find out more about our Business Insurance policies?

Disclaimer

This article has been prepared by Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL234708 (“Allianz”). In some cases, information has been provided to us by third parties and while that information is believed to be accurate and reliable, its accuracy is not guaranteed in any way.

Any opinions expressed constitute our views at the time of issue and are subject to change. Neither Allianz, nor its employees or directors give any warranty of accuracy or accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in this article. You should make your own enquiries to determine which insurance best suits you. Any advice provided is general advice only.

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Allianz acknowledges Aboriginal and Torres Strait Islander peoples as the Traditional Custodians of the lands on which we live and work across Australia. We pay our respect to First Nations Elders past and present.



Any advice here does not take into account your individual objectives, financial situation or needs. Terms, conditions, limits, and exclusions apply. Before making a decision about this insurance, consider the relevant Product Disclosure Statement (PDS)/Policy Wording and Supplementary PDS (if applicable). Where applicable, the PDS/Policy Wording, Supplementary PDS and Target Market Determination (TMD) for this insurance are available on this website. We do not provide any form of advice if you call us to enquire about or purchase a product.

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