What is Public & Product Liability Insurance
Public/Products Liability Insurance is designed to cover your potential liabilities to third parties for personal injury or property damage.
This policy type is most likely why you’re here, because in our experience
As a community group you have a duty of care to members of the public (third parties) who come into contact with your organisation. If an accident or damage to their property occurs while you are providing a service, a third party can sue your organisation which could result in you being obliged to pay for the damage or injury you may have caused.
This policy is your best defence against potentially costly claims that can result from something you do or fail to do. This policy will defend you and pay compensation if you are found legally liable, subject to the specific terms and conditions of the policy.
You need this if your organisation:
- works with volunteers/members, clients or customers in public spaces
- visits or uses spaces owned or controlled by others
- has visitors to your premises
- manufactures/makes products
This is what Public & Product Liability Insurance can protect you from
Legal Costs Covers your organisation’s legal costs in the event that a claim is made against your organisation including for claims alleging negligence.
Property Damage Covers damage to property caused through your organisation’s activities including damage caused by negligence.
Personal Injury Covers your organisation if your organisation has caused injury to someone in the course of your organisation’s normal activities.
Third Party Covers you for claims made by third parties.
Damaged/Goods Covers your organisation for damage caused to other people’s property in your organisation’s custody or control.
Do I Need Public and Products Liability Cover?
It is really important you have both Public & Products Liability under the one insurance policy. Some insurance providers only offer Public Liability, which means you are not covered for the products you sell. This is important because if your products injure someone, cause someone to become ill, or damage property you could be found liable, but without the Products Liabilty components in the policy you do not have any cover for this risk.
For example, if you put on a sausage sizzle fundraiser and the sausages you sell to the public are not cooked properly and cause those people to become seriously ill, this policy will cover you. However, if you only had public liability cover only and not products, the policy would not respond in this instance and you could be required to pay compensation out of your own pocket. Examples of what Public & Products Liability insurance covers
Our Additional Policy Benefits
- Property whilst in the physical or legal control of the Insured (Limit $250,000)
- Voluntary workers included under the definition of Insured
- Tenants Liability
- Car Parking Liability
- Interest of Landlords
- Cross Liability
- Professional Liability in respect of:
- Medical persons employed to provide first aid or other medical services on premises;
- Professional advice or service where no fee is charged;
- Coaches, instructors, and trainers (both paid and unpaid).
- Cover includes the organising of small community events (up to 500 people). To ensure your event/s are adequately covered please notify us of the event details as some exclusions apply.
Types of claims Public and Products Liability covers:
- a tent comes loose in windy conditions and hits someone’s car because 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
- if the sausages you sell at your sausage sizzle fundraiser cause multiple people to become seriously ill
- Where you have mis-managed the facility or premises making the venue unsafe or not fit for the activity and as a result a person playing is injured, however this does not cover the normal risks inherent in playing the game.
Examples of what Public and Products Liability doesn’t: cover:
- People injured in the normal course of playing a sport however it does cover incidents where your organisation has mis-managed the premises. For example if a cricket pitch has not been covered with enough sand and a footballer injures their knee by hitting the pitch during a game.
- Personal Accident for your volunteers. Our Volunteer Workers Personal Accident policy will cover this.
- Claims for financial damages made against your organisation by a third party. You may require Association & Official Liability policy to cover these circumstances.
Covering sub groups, sub-committees & branches
This policy provides cover for the insured named on the policy only. The policy does not cover the legal liabilities of any other group, business, committee or individual who is not part of the named insured organisation. Related organisational groups can be added to a policy as sub-groups or sub-committees on the basis that:
- They are not incorporated.
- They should not have their own independent bank account. There should be a bank account set up by the umbrella body on behalf of the sub group.
- A member of sub-group or sub-committee must sit on the parent group management committee or submit reports to the parent group management committee for governance.
- Groups share similar interests/activities.
If the related organisations meet each of these then they can be noted on the policy schedule as covered. An additional assessed base premium plus taxes and statutory charges would be charged for each related group.
It is really important that you have both Public & Products Liability under the one insurance policy.
Some insurance covers only offer Public Liability, that means you are not covered for the products you sell.
This is really important because if your products injure someone, cause someone to become ill, or damage property you could be found liable, but without the Products Liability component in the policy you do not have any cover for this risk.
Our policy covers both Public and Products Liability.
We cannot provide cover through LCIS for stallholders providing the following services/products:
- Second hand tools and electrical goods. New goods need to be tested and tagged to the Australia Standard.
- Children’s clothes
- Children’s toys and play equipment
- Live animal sales
As the LCIS focus is a community groups we are unable to provide cover to businesses.
This policy does not cover claims arising from the use by buskers of knives, swords (including theatrical knives and swords) or any activity involving the use of fire.
Additionally, you need to be aware there are specific exclusions under LCIS PPL Policy coverage in relation to the following:
- Children’s rides and animal rides
- Any amusement rides and devices
- Inflatable recreational equipment.
This is the total dollar value your policy will cover you for. Most lease/hire agreements for premises or facilities will require an insurance policy limit of at least $10M. However where you have a crowd exposure the risk is increased from a single incident to one that would cause injury to many people, which means you should consider a higher cover limit of at least $20M.
Examples of crowd exposures
- providing food at either a community dinner, a stall at a community event, a fundraising BBQ or night market
- where you organise a community or family event such as a birthday, engagement, wedding or reunion
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 only approximately a 25% increase in total premium cost inclusive of all fees and charges.
An excess is the additional dollar amount you are required to pay when your policy covers you for a claim made against you. This base policy has $100 excess for property damage claims only unless adjustments (endorsements) are made to your inclusions resulting in additional excesses. This will all be detailed in your Policy Schedule in respect of each claim type.
The above statements are issued as a matter of information only and for full terms and conditions you should refer to the policy wording.