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How Much Public Liability Insurance Do You Need?

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Public liability insurance helps protect your organisation from claims of accidents, bodily injuries, or property damage that can arise when working with the general public or third parties at your property.

At ACS, we take a unique approach to helping organisations understand and secure the right insurance coverage. We are a leading expert in public liability insurance, servicing over 3500 clients and specialising in insurance, lending, and investments. Our core business is serving churches, schools, and ministries, providing tailored coverage under our public liability insurance package.

We recognise that one size doesn’t fit all, and we take the time to understand your unique needs to ensure you get the right cover. Our experience with many organisations with unique features and risk areas allows us to ask the right questions and provide appropriate solutions.

Factors Influencing the Amount of Public Liability Insurance You Need

As a business owner or church/ministry leader, you’ll find that each organisation is unique. The amount of public liability insurance you need depends on your business’s risk profile, size, and contractual requirements.

Factors that affect policy limit

  • Business size: A small home-based business might need $5 million, while a large business might need $20 million or more 
  • Risk level: The likelihood of injury or property damage 
  • Contractual requirements: Some contracts require a minimum amount of public liability insurance 
  • Industry regulations: Some industries require a minimum amount of public liability insurance for licensing or membership 

How to determine policy limit 

  • Consider the type of work you do
  • Consider the frequency of interaction with the public
  • Consider your previous claims history
  • Consider your industry regulations
  • Consider your business’s risk profile
  • Consider your contractual requirements

Coverage Limits and Policy Options

Policy Limits

There are two types of policy limits: individual and aggregate. The individual limit is the maximum payment for a single claim. The aggregate limit is the total the insurer will pay for all claims in a policy year.

Australia offers 3 main levels of insurance cover amounts:

  • $5 Million
  • $10 Million
  • $20 Million

We recommend seeking additional advice for the most appropriate amount for your organisation.

Choosing Higher Limits:

Higher coverage is particularly advisable for organisations with high public interaction, such as those in hospitality, childcare, or construction, where the risk of accidents and subsequent claims is higher. For churches and ministries, consider the frequency and scale of your events and activities.

Legal and Regulatory Requirements

Meeting the insurance requirements of clients and vendors is essential for securing and retaining contracts. By aligning your public liability coverage with their expectations, you protect against potential risks, demonstrate professionalism, and foster trust. Ensuring contractual compliance not only avoids legal disputes but also strengthens your partnerships.

Risk Mitigation Strategies

By conducting regular risk assessments, training staff and volunteers on safety protocols, and maintaining a safe environment, you can significantly lower the likelihood of accidents and claims. 

These proactive steps not only enhance safety but can also positively impact insurance premiums. Insurers often offer lower premiums to organisations that demonstrate a commitment to risk reduction, as they are perceived as less likely to file costly claims.

As an ACS client, you have access to a portal that provides you with resources, templates, training material, and access to consultants who are experts in this field.

Summary

Having the right amount of public liability insurance is vital for protecting your organisation against potential risks and liabilities. We encourage you to assess your current public liability coverage to ensure it meets your needs and complies with industry standards. 

For further information or to obtain a quote, contact ACS Financial at 1300 646 777. Our team is here to help you navigate your public liability insurance options and secure the best coverage for your organisation.







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