Public Liability insurance covers you and your business for losses or damage a third party suffers (or claims to have suffered) as a result of your business activities.
In plain English this provides protection against legal and court costs (i.e. legal liability) in the event that someone is injured, or has their property damaged while you are providing a service to them. This type of insurance covers incidents that occur not only in your studio, but also at events you may produce in external locations.
Keep in mind that this type of insurance will only cover claims made by external parties and not those made by your own employees (you will require Employers Liability insurance for this).
…and Products Liability?
This is usually included in your Public Liability policy and is important if you sell dance products or equipment to your customers. It will cover you for claims of bodily injury or property damage arising from the failure of goods sold or supplied by you through your practice.
Why do I need it?
In every line of work there is always the potential for something to go wrong – basically accidents happen and when they do, you or your business can be held liable.
Regardless of the size of your business, Public Liability claims can be incredibly costly, and even if you are not at fault, you may still incur considerable legal costs while defending yourself.
Public Liability insurance is recommended for anyone running a business that generates revenue. Investing in a good policy can provide you with the peace of mind that your business will be protected regardless of what life throws at you.
Who is covered by my Public Liability insurance policy?
A Public Liability insurance policy should cover:
- Your business, including any subsidiary companies, and
- Your staff, including any principal, employee, director, partner or employee whilst they are acting within the scope of their duties.
Will a public liability insurance policy cover our performance/special event?
Public Liability insurance will cover external events provided they are within the scope of your normal business activities. If you are unsure of whether an event is covered, please contact your insurance provider for further information or to arrange additional cover.
Examples of cases where Public Liability insurance would apply:
- During a dance performance in your studio, an audience member trips on a piece of loose wire from a stereo. Public Liability insurance would cover your business if the individual claimed for injuries sustained as a result of an unsafe studio.
- A pipe bursts in the cloak room where students store their bags during practice, damaging one student’s laptop computer beyond repair. Public Liability insurance would cover any claim by this student for damage. (Example may only apply if you are the property owner of the building).
How much cover do I need?
The most suitable level of cover will differ greatly depending on the type of business you run, so it is important to discuss your individual needs with a financial advisor or broker. As a starting point, Aon offers limits beginning at $2,000,000 with higher limits available up to $20,000,000.
Visit Aon for more information about Public Liability insurance.
Don’t have public liability insurance?
Aon has negotiated a 33% reduction on dance premiums—just in time for 2015! Take advantage of this great offer by getting a quote for public liability insurance online today or calling their Dance service team on 1800 806 584.