Liability insurance

If you own a business, you may be liable for damages or injuries to another person or property. Though liability insurance is optional in most cases, it is strongly recommended for businesses in all industries as the likelihood of being sued for negligence is unpredictable and potentially very costly. Types of liability insurance you may need to consider include:

Public Liability

Public liability insurance protects you and your business against the financial risk of being found liable to a third party for death or injury, loss or damage of property or economic loss resulting from your negligence.

Professional Indemnity

Professional indemnity insurance protects advice-based businesses from legal action taken for losses incurred as a result of professional negligence. It provides indemnity cover if your client suffers a loss - material, financial or physical - directly attributed to negligent acts, errors or omissions.

Product Liability

If you sell, supply or deliver goods, even in the form of repair or service, you may need cover against claims of goods causing injury, death or damage. Product liability insurance covers you if any of these events happen to another business or person by the failure of your product or the product you are selling.

What to do...

  • Read more about product liability on the Australian Competition and Consumer Commission website.
  • Talk to a number of insurance companies and brokers to discuss what is best for you - search our directory for insurance and broker and industry associations, or check the phone book.
  • See information about insurance in your state or territory.
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