Public & Product Liability is an essential insurance product for Australian small businesses. Sometimes referred to as Broadform Liability Insurance or General Liability, it provides coverage for personal injury or property damage helps protect your legal liability to third parties, including clients, customers and the public for injury or damage to their property, caused by your business.

While Public & Product liability insurance isn’t mandatory for most businesses, it is recommended. That’s because the unpredictable nature of accidents sometimes makes them hard to prevent and the costs of being sued can be extraordinarily high.

Public & Products Liability is made up of four insuring clauses. The following is a brief summary of what each of those clauses covers:

• Public Liability is designed to protect your organisation if you’re sued because someone injures themselves while on your premises or your organisation has caused them to injure themselves or damaged their property.
• Product liability insurance is designed to protect your organisation if you’re sued because a product you sell, assemble or supply has caused harm to a person or to their property.
• Advertising liability covers losses arising from the policyholder’s advertising.
• Defence costs provides a dedicated additional limit of liability just for defence costs.

You can choose to purchase any combination of this cover, however most organisations choose to purchase all four insuring clauses.