Local Community Insurance Services

Public and Products Liability (Broadform) Insurance – What does it cover?

A Public and Products Liability policy provides your club, community group or organisation with an indemnity against all sums which you become legally liable to pay (by way of compensation) for personal injury and/or property damage to the public resulting from an occurrence which arises from your activities. A legal liability can arise from your negligence, or the negligence of your members, including voluntary workers engaged on behalf of the club, who are working in a recognised role for the club or group.

To put this another way if you do something, or fail to do something, then where you are negligent (eg you have breached your duty of care) and someone is injured, or their property is damaged as a result of this negligent act, the policy will defend you and pay compensation if you are legally liable subject to the specific terms and conditions of the policy. For example, a tent comes loose in windy conditions as it was not properly secured, a person slips on a wet surface because you have not made it safe for people to walk on it.

The policy will also cover personal injury and/or property damage resulting from products sold or supplied. The potential exposure for a community group can arise from manufacture, selling or reselling products. If a group is importing products then it can be deemed to be the manufacturer. In all cases there is a responsibility to ensure that the products are safe for the intended purpose. This responsibility attaches to all types of goods including food and drink that may be supplied or sold as part of a group’s activities or events.

Participation Exclusion

People participating in a sporting event (eg soccer match, netball, tennis) or other physical activity (eg bush walking, dancing, acting), generally accept the inherent risk of participating as a hazard of the event or activity. There is no cover provided under the policy for personal injury sustained by persons whilst participating in such events.

What is important is that your group is protected if your premises or facility is unsafe for the event or activity being conducted – this can create a risk greater than the normal accepted hazard of participating.

The LCIS policy does not exclude cover for personal injury or property damage that is caused when a person is participating in a sporting event or other physical activity and the injury or damage results from a hazard at the venue created through your negligence.

Public and Products Liability Insurance – What level of cover should I have?

Most lease/hire agreements for use of premises or facilities will require an insurance policy limit of at least $10,000,000. Where you have a ‘crowd exposure’, the risk is increased for a single incident to cause injury to many people. You should consider a higher cover limit, at least $20,000,000. Examples of crowd exposures are where you are providing food at either a community dinner, a stall at a community event, a fundraising BBQ; or where you are organisers of a festival or fair, including family events such as birthdays, engagements, weddings or reunions. The bigger the event the greater the risk that $10m cover may not be enough. By opting for a $20m cover, you are in effect doubling your protection for approximately a 25% increase in total premium cost inclusive of all fees and charges.

Single Event Cover (Festivals and Fairs)

Single cover Event Liability insurance is available for one-off events, such as a fairs, street parties, festivals, community celebrations, etc. Local Community Insurance Services can work with event organisers to assist with the following key aspects:

Policy Excess

Annual Public and Products Liability Policy – $100 (property damage claims only)

Festival and Fair Public and Products Liability Policy – $500 (property damage claims only)

What is Event Cancellation Insurance?

Event Cancellation insurance can protect your organisation’s financial investment in community based events, festivals and conferences. Should adverse weather or other unforeseen circumstances beyond your control cause the necessary cancellation, abandonment, postponement or interruption of your event, Event Cancellation insurance can respond to the financial loss suffered by your organisation as a result.

Event Cancellation insurance is generally appropriate for events with a budget of $30,000 or higher, and is more affordable than you may think. For further information on Event Cancellation insurance, please contact your LCIS advisor who can put you in contact with the JLT Events team.

Additional policy benefits

Exclusions to cover

Broadform Liability Insurance Policy

View Broadform Liability Insurance Policy

Endorsements to Broadform Liability policy not specifically arranged for Community Fairs or Festivals.

The following endorsements apply to the Broadform Liability Insurance Policy PDF document:

2. DEFINITIONS
Page 9
2.21 You, Your, Insured is amended at paragraph (c) to read as follows:

(c) Any Director, Executive Officer, Employee, partner or shareholder, voluntary Unpaid Worker which includes Committee Members, Office Holders, Managers, Coaches or Trainers of You as designated in paragraph (a) but only whilst acting within the scope of their duties in such capacity.

3. EXCLUSIONS
Page 13
Exclusion 3.14. Professional Liability amended to read as follows:

Liability to pay Compensation for the rendering of or failure to render professional advice or service by You or any related error or omission connected therewith, but this Exclusion does not apply to:

  1. Personal Injury or Property Damage arising from such rendering or failure to render professional advice or service, providing such professional advice or service is not given for a fee;
  2. Personal Injury and/or Property Damage arising from the rendering or failure to render professional medical advice by Medical Persons employed by You to provide first aid and other medical services on Your premises;
  3. Personal Injury or Property Damage arising from the actions of coaches/instructors/trainers whether paid or unpaid.
Page 13
Exclusion 3.15. Property in Custody or Control amended by adding the following sub-paragraphs:
  1. (iv) any other property (not being a Vehicle or premises) under a lease or rental agreement in Your physical or legal control up to a limit of $100,000 (or any other amount specified in the Policy Schedule) for any one Occurrence
  2. (v) other property temporarily in Your physical or legal control up to a limit of $100,000 (or any other amount specified in the Policy Schedule) for any one Occurrence
  3. (vi) the property of employee, volunteer or member of You as defined in paragraph 2.21. You, Your, Insured
ADDITIONAL PARAGRAPHS TO POLICY SECTION 3. EXCLUSIONS
3.20. Participation

Personal Injury or damage to property of any person caused by or arising out of the participation of such person or his/her property in any game, match, race, practice, trial, or other sporting activity (including but not limited to swimming, gymnastics, health and fitness activities); but this exclusion does not apply to:

  1. personal injury or damage to property caused by or arising out of your negligence as a property owner or lessee or occupier or manager of the premises or facility.
3.21. Child molestation

The molestation or interference with a minor or minors by

  1. You or any person comprising You
  2. any of Your employees, or
  3. any person performing any voluntary work on Your behalf

Further, we shall not have any duty to defend any action, suit or proceedings brought against You (or any other person or body corporate who might otherwise but for the provisions of this clause be entitled to indemnity under this policy) which either directly or vicariously seeks compensation in respect of such molestation or interference as above or from any personal injury resultant therefrom.

3.22 Amusements

Will not provide cover in respect of claims arising from:-

3.23 Security Personnel

Personal injury or property damage arising directly or indirectly out of or caused by licenced security personnel.

Endorsements to Broadform Liability policy specifically arranged for Community Fairs or Festivals, Street Parades, Residential Street Parties, Carols by Candlelight.

The following endorsements apply to the Broadform Liability Insurance Policy PDF document:

3. EXCLUSIONS
Page 13
Exclusion 3.14. Professional Liability amended to read as follows:

Liability to pay Compensation for the rendering of or failure to render professional advice or service by You or any related error or omission connected therewith, but this Exclusion does not apply to:

  1. Personal Injury or Property Damage arising from such rendering or failure to render professional advice or service, providing such professional advice or service is not given for a fee;
  2. Personal Injury and/or Property Damage arising from the rendering or failure to render professional medical advice by Medical Persons employed by You to provide first aid and other medical services on Your premises.
Page 13
Exclusion 3.15. Property in Custody or Control amended by adding the following sub-paragraphs:
  1. (iv) any other property (not being a Vehicle or premises) under a lease or rental agreement in Your physical or legal control up to a limit of $100,000 (or any other amount specified in the Policy Schedule) for any one Occurrence
  2. (v) other property temporarily in Your physical or legal control up to a limit of $100,000 (or any other amount specified in the Policy Schedule) for any one Occurrence
  3. (vi) the property of employee, volunteer or member of You as defined in paragraph 2.21. You, Your, Insured
ADDITIONAL PARAGRAPHS TO POLICY SECTION 3. EXCLUSIONS
3.20. Participation

Personal Injury or damage to property of any person caused by or arising out of the participation of such person or his/her property in any game, match, race, practice, trial, or other sporting activity (including but not limited to swimming, gymnastics, health and fitness activities); but this exclusion does not apply to:

  1. personal injury or damage to property caused by or arising out of your negligence as a property owner or lessee or occupier or manager of the premises or facility.
3.21. Child molestation

The molestation or interference with a minor or minors by

  1. You or any person comprising You
  2. any of Your employees, or
  3. any person performing any voluntary work on Your behalf

Further, we shall not have any duty to defend any action, suit or proceedings brought against You (or any other person or body corporate who might otherwise but for the provisions of this clause be entitled to indemnity under this policy) which either directly or vicariously seeks compensation in respect of such molestation or interference as above or from any personal injury resultant therefrom.

3.22 Amusements

Will not provide cover in respect of claims arising from:-

3.23 Security Personnel

Personal injury or property damage arising directly or indirectly out of or caused by licenced security personnel.

This description is issued as a matter of information only and for full terms and conditions you should refer to the policy wording.

We accept no responsibility whatsoever for any inadvertent or negligent act, error or omission on our part in preparing these statements or for any loss, damage or expense thereby occasioned to any recipient of this letter.

© Copyright 2014 Jardine Lloyd Thompson Pty Limited ABN 69 009 098 864 AFS Licence No: 226827

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