Do you manufacture, import, distribute or sell a product? Provide a service? Have visitors to your premises or visit other’s premises? Do you only have $20m Public & Products Liability?
If you answered yes to any of these, you have a potential Public and/ or Product Liability exposure. Public & Products Liability insurance provides cover for a variety of statutory and civil legal liabilities, including personal injury, property damage, environmental liability and statutory liabilities.
Did you know if you import a product, under Australian Consumer Legislation, you are deemed as the manufacturer, and have the obligations and responsibilities (to consumers and Federal & State/ Territory regulators), as if you are the manufacturer? This could involve a Class Action and/ or an expensive legal case to defend, if there is a fault with that product.
Many businesses only buy $20m Public & Products Liability coverage to fulfill standard lease conditions, but have a think about if this is enough, with:
- Ever increasing court awards, that take into account the level of disability, pain & suffering and loss of future earnings.
- Inflationary trends that occur between the time of the incident and the final settlement date of a claim, which can take up to 10 years.
- Potential multiple personal injuries arising from your product, service or negligent act.
- Legal costs in defending an action (including potential Class Actions), as well as any claim awards. Noting that the policy limit applies to the combined total of legal costs and compensation awards.
- The potential of a minor (i.e. under 18) having seven (7) years from the time they turn 18 to make their own claim for compensation, even if their parents/ guardian had agreed to a settlement at the time of the incident.
For businesses that need Public & Products Liability insurance, it is critical to have a formalised risk assessment and quantified risk appetite.
Business this is recommended for:
Any business that manufactures, import, distributes, sells a product or service. Also, any business that has visitors to their premises or has staff that visit other’s premises.