Public Liability Insurance - A Global Necessity

When one thinks of Public Liability Insurance and the essential status it now enjoys as a business and corporate requirement globally, one would find it hard to believe that the seed of the idea of public liability insurance began with the gaining of popularity of the automobile industry. As cars gained in speed, drivers became rasher and people realized that the legal system allowed them to sue for damages, the concept of public liability has firmed up. As the public perception, negligence and third party claims grew so did organizations wake up to the need for insurance on public liability is to safeguard not only against claims filed by any member of the public, but also to cover the exorbitant costs of litigation undergone while refuting claims. There are many who file frivolous claims. These claims lack any kind of legal validity but the legal system across all nations is such that every claim undergoes legal cognizance. It is not uncommon, but the overhead costs of fighting such frivolous cases irrespective of their lack of substance is crippling and can not only destroy a company's credibility and reputation but also make vast inroads into company funds. The majority of such claims are thankfully denied compensation; however the cost of expensive litigation remains.

Public Liability Insurance is now an important part of any company or organizations insurance portfolio. The realization has gained in leaps that it is important for companies to protect themselves against a litigious public and that claims can hit from any quarter.

In Australia Public Liability Insurance covers all fields. Right from a hairdressing salon, to a burglar alarm Installer, all can seek this particular Insurance. In fact events like exhibitions, fairs, fetes, football or rugby matches and even a rock concert be covered against any claim arising due to cancellation because of bad weather. This insurance is gaining in stature and importance in every walk of commercial activity..

A pubic liability insurance policy must be intensive and detailed and the insurer must seek to protect them as intensively and exhaustively as possible. Insurance agencies will create and analyze a risk profile before seeking to provide adequate coverage. The liability claims can run into millions and cautious employers should seek comprehensive packages that protect them from paying damages that may even arise from the actions of overzealous employees. In a case in Queensland, the Gavin Patrick Ryan Vs Ann St Holdings judgment in 2006, the owner of a nightclub in Brisbane was held liable for the actions of his bouncers against two club clients. Insurance agencies need to ensure that coverage to this insurance is as comprehensive as possible to protect against as many possible types of claim as can be covered as well as make sure such that the costs of litigation are indemnified. Public Liability Insurance has been recognized by both public as well as private organizations as being a basic requirement, enabling risk free functioning without the fear of constantly worrying about disgruntled public.

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About the author

Robert Ellis is a freelance insurance advisor who provides suggestions to clients on various aspects of public liability insurance. He is associated with Bizcover.com.au and provides guidelines on accounting insurance, professional indemnity insurance, IT insurance, office and business insurance and more.

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