WHAT IS PL INSURANCE?
PL is Public/Products Liability; also referred to as Broadform Liability. This insurance pays compensation to a third party for any bodily injury or property damage for which the insured is liable.
WHY DO I NEED PL INSURANCE?
By law, we have a duty of care to others around us. An individual is required to exercise reasonable care to others such as those in your care, those using your services or those exposed to your activities. If one is found negligent, the injured party can bring action to seek damages or compensation. A PL policy also covers legal costs subject to its terms & conditions.
I AM COVERED BY THE VENUE WHERE I PERFORM SUCH AS RSL/CHURCH/CAFÉ ETC.?
Most venues carry PL insurance but the cover is only for the benefit of the venue owner/operator. If the act is caused by you their insurers will deal with their claim and the insurers reserve the right to recover against you. Therefore, it is prudent to clarify who is responsible to insure your liability.
WHAT IF MY CIRCUMSTANCES SUCH AS TYPE OF WORK PERFORMED, PLACE OF WORK CHANGE?
A Standard policy provides cover anywhere within Australia subject to its terms and conditions.Most policies contain exclusions relating to work in mines, underwater, within part of an airport etc. Conditions such as “duty of disclosure” requires you to advise if there is any changes in information provided at the start of cover or when the change increases the risks.
CAN I PARTICIPATE IN A FESTIVAL, MARKET DAY, AND EXHIBITION?
Yes as long as you have advised insurers at the start of cover the type of activities which will be undertaken by you.
WHAT LIMIT WILL I NEED?
Difficult to advise what limit is adequate since the question of compensation is up to the court of law to decide including legal costs incurred. Generally, you will be asked by the organiser or venue owner to provide min $5m. In recent times, most venue owners and councils are asking for $10m and $20m depending upon the type of event.
Hiring a hall space – A standard PL policy excludes liability arising under contract. Some will provide cover for liability assumed under a lease. Therefore, it is important to check the lease to ensue that you are not asked to take on the responsibility of others
EQUIPMENT ON LOAN
In most instances, the owner of the equipment will carry their own insurance for loss or damage to equipment on hire including PL however you may be held liable for misuse etc., there is limited cover under a PL policy; also additional responsibility under such hire agreements is not covered unless approved by insurers before risks commence.
GIVING HOLD HARMLESS AGREEMENT
This refers to a provision or clause in an agreement (whether a lease, hire agreement etc) where one party or both agree not to hold the other or others responsible for loss, damage or injury caused. It is important that if you enter or accept such a clause, you need to notify insurers. Otherwise, insurers may decline a claim. Reason being, insurers are not given the right to recover against the other party who may be held liable but with whom you have given the hold harmless agreement.
I AM USING MY HOME AS A BASE FOR MY WORK?
This will be covered by a PL policy. If your activities change, you need to check with us to ensure that you do not need an extension to the policy.
If this activity is disclosed at the start of cover, you will be covered. You have to consider liability to participants; in some instances, injury to participants may not be covered by the policy.
CLAIM & INCIDENT REPORT
Important to notify us of any incident and make a report. Some incidents though trivial at first may escalate to a claim. Therefore you should complete an incident report and lodge it with us as soon as reasonably practicable when incident is still clear.
DO I NEED COVER FOR MY EQUIPMENT, MATERIALS?
Yes; some venue owners/operators insist that you have insurance cover and to hold them harmless for any loss or damage. Also, refer to above concerning items on loan to you.