Three Ways Public Liability Insurance Protects You As A Sole Trader In Australia

Public liability insurance is an important part of any business owner's risk management strategy. Even as a sole trader, the risk of litigation is always present, and public liability insurance protects you in the event that a third party is injured or suffers property damage on your premises.

Here are three ways public liability insurance protects you as a sole trader in Australia:

1. Public Liability Insurance Covers Legal Costs

Public liability insurance covers legal costs if someone sues you for property damage or personal injury. If you're sued by a member of the public for causing property damage or personal injury, then public liability insurance will cover the legal fees associated with defending yourself.

As a sole trader, you may not have access to the same level of financial support that larger businesses do in these situations. And even if you win the case, you'll still be responsible for paying your own legal bills.

Having insurance ensures that this isn't an issue. The insurer will cover your legal costs and help to ensure that any compensation awarded is paid by them rather than from your own pocket.

2. Public Liability Insurance Covers Compensation Payments

If you are found to be liable in a lawsuit involving personal injury or property damage, public liability insurance will cover all compensation payments ordered by the court up to the coverage limit of your policy. Those compensation payments can potentially reach into the thousands and even hundreds of thousands, so it's important to have a policy that provides sufficient protection for your business activities.

3. Public Liability Insurance Covers 3rd Party Losses

Public Liability Insurance is designed to protect you from financial loss should a member of the public make a claim against you due to an accident or injury they suffer as a result of your business activities.

Say, for example, an employee of yours accidentally trips up and spills hot coffee on a customer, or a client falls over some debris left by one of your contractors. In these cases, Public Liability Insurance covers compensation and legal costs for claims made against you arising from property damage or personal injury to a 3rd party (the customer, mailman, or client).

Public liability insurance means you can focus on what you do best, safe in the knowledge that if the unexpected happens, you're covered. For more information on public liability insurance for sole traders in Australia, contact an insurance expert today.

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