Your Most Common Questions Answered
Understanding Public & Products Liability Insurance can actually become quite involved. As part of our quest to support community groups and not for profit organisations here are some of your most common questions answered.
What Is Public & Products Liability Insurance?
A Public & Products Liability policy (PPL) is there to protect you if you innocently do something wrong (so where you have breach the expected duty of care).
For example, you are exhibiting your goods at a market and you leave a box jutting out from under the a trestle which forms a trip hazard a member of the public visiting your stall trips on the box and is injured. If they sue you, this type of policy will pay your defence costs and cover any amounts awarded as compensation to the injured person by a court of law subject to the policy cover limits. Even if you are not found legally liable and so no damages awarded there are defence costs which will be paid by the policy and that will save your group a major expense.
Are Events Covered Under Public & Produicts Liability Insurance?
It depends on the type of event you are holding and the number of people attending. If the event is small where the numbers of people attending are up to 500 and the activities are deemed to be low risk then this type of event would be covered. If the event is large and you are expecting attendance numbers to be greater than 500 you need to contact your Insurer with details of the event, expected numbers in attendance including the duration of the event and the type of activities going on.
Are My Contents Covered Under Public & Products Liability Insurance?
No. Public & Products Liability Insurance covers your liabilities to members of the public if they suffer bodily injury or property damage.
Are Our Volunteers Covered Under Public Liability Insurance?
Yes and No. If a volunteer working for you is injured because you did something wrong, and they sue you, the PPL policy will likely respond to that claim by defending you and if you are found legally liable paying damages to the limit of the cover. If a volunteer in the course of their work for you does something wrong and a member of the public is injured and you are sued, the PPL policy will likely respond to that claim by defending you and the volunteer. If a Volunteer has a personal accident and they are injured while working for you, their injury would likely not be covered under a Public Liability policy. If you have volunteers working for you, we would recommend you take a Volunteer Workers Personal Accident policy which will assist your volunteers if they are injured. Find out more about Volunteer Workers Personal Accident
Why Do I Need Products Liability Insurance?
Products liability insurance is there to protect you if a member of the public suffers bodily injury or property damage because of a product you sell and they sue you. For example, you organise a sausage sizzle to raise funds for the club, if those sausages are contaminated due to bad handling and people who have purchased those sausages from you suffer food poisoning you could be at risk of being sued.
Is A Jumping Castle That I Hire Covered Under Public Liability Insurance?
No. There is a policy exclusion to say no cover is provided. The person who owns the jumping castle would be responsible for inflating and deflating the device, including supervising it at all times when children are playing on the device. The person who owns the jumping castle would need to have their own Public and Products Liability Insurance. Depending on the State your event is held and the size of the Jumping Castle it may be deemed an amusement device and subject to regulations. This can also apply to other inflatables. The Safe Work Australia website has guidance material which may help you manage the risks around use of inflatable amusement devices.
Is Public/Products Liability The Only Insurance I Need?
There are other policies we recommend you consider. These are shown below. Please contact the LCIS team for more information.
- Voluntary workers Persoanl Accident Insurance;
- Associations Liability Insurance; and
- Property Insurance (also commonly called Business pack)