Understanding what level of cover your organisation needs...
When considering Public and Products Liability Insurance, you’ll typically see two common Limits of Liability: $10 million and $20 million. It’s natural to ask, “Is doubling my cover really worth the additional cost?” In many cases, the answer is yes – and increasing your Limit is often more cost-effective than you might expect.
Did you know?
Upgrading from a $10 million to a $20 million Limit of Liability typically increases the premium by only around 30%. For a modest additional cost, you can effectively double your level of protection, making it a smart investment in both peace of mind and financial security.
Scenario 1: Community group serving food
Imagine your community group is hosting a local fundraiser where you serve food to attendees. Despite your best efforts, someone or a group of people suffer food poisoning or an allergic reaction linked to your event. Medical bills, legal fees, and potential compensation claims can quickly add up.
- With a $10 million Limit of Liability, you might think you’re covered, but what if the claim exceeds that amount? What if there is a large group of people affected? You could be personally responsible for the difference, putting your organisation’s finances at risk.
- With a $20 million Limit of Liability, you can have a much larger safety net to cover claims, legal costs, and damages, helping to protect your group’s future and allowing you to focus on your community work with minimised fear of financial ruin.
Scenario 2: Event with crowd exposure
Imagine a large public event held in a council-owned venue, attracting hundreds or even thousands of people. In environments like this, accidents can happen, such as slips, trips, falls, or other injuries.
- If a serious incident occurs and multiple people are affected, claims can escalate rapidly. A $10 million Limit of Liability, might not be enough to cover all liabilities for all people affected, leaving your organisation exposed.
- By contrast a $20 million Limit of Liability, may provide a more robust level of protection, helping ensure there is adequate cover for substantial claims and associated legal expenses, which is important when managing events with significant crowd exposures.
The growing trend: Councils and venues require $20 million
Many councils and venues are now making $20 million the minimum Limit of Liability as an Insurance requirement for tenants and event organisers. This shift reflects the increasing risks and the need for adequate protection.
Always check the specific Insurance requirements of the council or venue before obtaining your Policy.
In summary
- $20 million Limit of Liability cover can offer double the protection for generally only about 30% more in cost.
- It can be essential for community groups serving food and events with large crowds, where risks and potential claims exposure are higher.
- Many councils and venues now require a minimum of $20 million Limit of Liability - so always verify before you buy.
Important notice for current LCIS Policyholders with $10 Million Limit of Liability:
If you currently hold an LCIS Policy with a $10 million Limit of Liability and would like to increase your coverage to $20 million Limit of Liability, we’re here to help.
You can endorse your existing Policy at any time during your current Policy period. Simply reach out to our team today, we will calculate the pro-rata balance remaining on your Policy and arrange the endorsement for you quickly and easily.
Alternatively, if you prefer, you can wait until your Policy’s renewal. At renewal time, you can review and update your Limit of Liability by using the "Renew your policy" feature on our website.
Increasing your Limit of Liability to $20 million can be a smart move to help ensure you have the best possible protection for your organisation. If you have any questions or need assistance, please don’t hesitate to contact our team.
The above statements are issued as a matter of information only and for full terms and conditions you should refer to the Policy Wording.
LCPA 25/902