There are a range of different types of liability insurance, including employers liability insurance (workers compensation) and directors and officers liability insurance (for companies). The three main types of liability insurance are:
The three of these are easy to get confused because they all protect you from lawsuits where people are suing you for harming them and/or their property. The difference lies in how you allegedly harmed them. Here's how they differ:
This is dependant on your business, and the types of risks it's exposed to. If you are unsure, speak to a broker.
| Response | 75+ yrs | 65-74 yrs | 55-64 yrs | 45-54 yrs | 35-44 yrs | 25-34 yrs | 18-24 yrs |
|---|---|---|---|---|---|---|---|
| Yes | 69.77% | 72.67% | 75.44% | 73.91% | 75.2% | 73.3% | 77.14% |
| No | 30.23% | 27.33% | 24.56% | 26.09% | 24.8% | 26.7% | 22.86% |
Negligence is defined as failing to take due care to avoid causing injury or loss to someone else. For negligence to be proven in court, it must be established firstly that there was a duty of care, and secondly that it was breached. The plaintiff must also be shown to have suffered an injury or loss and that the injury or loss was caused by the breach of duty.
If you own a business, public liability insurance is a necessary form of cover and while not compulsory, it should be taken out as a matter of course due to the crippling financial losses that could result from a successful public liability claim (we’re talking millions of dollars).
Public liability insurance is also recommended for anyone responsible for holding any sort of public event and it is often a compulsory requirement of doing so, which is regulated through a licensing authority.
Also referred to as general liability insurance, it is often included as part of a public liability insurance policy and is important to have if you provide products to the public. That’s because claims due to product failure can be extremely expensive even if unfounded due to the considerable legal defence costs often involved.
Different types of product liability insurance are designed to protect against the failure of different types of products, and typical examples include protection from liability for damage caused by software, injury caused by equipment and illness caused by food or beverages.
It was previously only required by a few professions such as accountants, lawyers and medical practitioners, where the results of their actions could have particularly devastating consequences. But now professional indemnity insurance is widespread, providing protection to a range of different professionals including insurance brokers, financial advisers and media representatives.
There are different kinds of professional indemnity insurance for different types of professions, such as medical indemnity insurance for medical practitioners and architects indemnity insurance for architects. And some professions require their members to hold professional indemnity insurance as a condition of being able to practise.
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I am a solicitor acting for a NSW Incorporated association which ran an after school care facility.
In 2011/2012 there was an incident which has lead to a claim being made against the association.
No one knows who the insurer was at the time.
Is there any way I can find out what companies were likely to offer public liability insurance to such a facility in 2011/12?
Thanks in anticipation.
Hi Robert,
APRA maintains a database of national claims and policies related to public liability insurance, you may be able to find the information you’re looking for through them:
https://www.apra.gov.au/national-claims-and-policies-database
All the best with your search!