Question 1

What is the difference between Public Liability and Products Liability insurance cover?

Accepted Answer

All GIO Business Insurance products have a combined Public and Products Liability cover. Both Public and Products Liability provide coverage for third party injury or property damage that you might cause. The difference is that Public Liability relates to injury or property damage whilst you’re on the job, and Products Liability relates to injury or damage caused by any products you distribute, supply or manufacture.

Question 2

How much Public & Products Liability cover do I need?

Accepted Answer

Each business is different, and as such has different needs when it comes to insurance. However, in making the decision you may want to take into account the following factors:

The contracts you work on. Some contracts will stipulate the minimum amount of cover required. If your business is within a shopping centre, you may find that the contract stipulates a minimum of $20m cover is required
The conditions of your licence (if applicable). As an example, electrical contractors are required to hold a minimum of $5 million public liability cover in order to obtain their licence in some states.

GIO can offer limits of $5m, $10m, and $20m cover, which can be purchased online or via our Australian-based Call Centre on 1800 036 837.

Question 3

What isn't covered by Public and Products Liability Insurance?

Accepted Answer

There are a few scenarios not covered by Public and Products Liability Insurance, including:

Injury to any employees you might have (this can be covered via Workers Compensation Insurance),
Civil legal liability incurred as a result of your professional advice (this can be covered via Professional Indemnity),
Pollution,
Asbestos, and
Product recall.

Question 4

What does Professional Indemnity Insurance cover?

Accepted Answer

Professional Indemnity Insurance has been created for businesses that provide professional advice or recommendations to clients. It covers the costs of legal action if a customer sues your business for poor advice that leads to their injury or financial loss.

Question 5

What is the difference between Public Liability and Professional Indemnity? Do I need both?

Accepted Answer

Public Liability and Professional Indemnity cover different types of risks.

Public Liability covers your legal liability to pay compensation for injury or damage to property caused to a third party in connection to your business. For example, if a customer slips and trips while on your business premises.

Professional Indemnity, on the other hand, protects against the risks associated with providing advice or recommendations to clients. For example, a customer could sue you for damages if it's alleged that your advice has caused a loss.

If your business has customers visiting your premises and you also provide advice or recommendations to those customers, then Public Liability and Professional Indemnity Insurance may both be beneficial to you.

Question 6

What does Portable and Valuable Items Insurance cover?

Accepted Answer

Portable and Valuable Items Insurance covers the accidental loss or damage of portable and valuable items. This can include items like mobile phones, laptop computers and tools of trade that you usually carry around with you during the course of your business operations. Cover is limited to $2,500 per item, unless the item has been specified for a higher value.

Loss or damage caused by theft without forced entry from your vehicle or building is an optional cover, which you can purchase by contacting us.

Question 7

What isn't covered by Portable and Valuable Items Insurance cover?

Accepted Answer

There are a few instances and scenarios not covered by our Portable and Valuable Items Insurance, including (but not limited to):

Loss or damage caused by third party factors such as general wear and tear, scratching, biting or chewing by any animal, or atmospheric conditions
Testing, experimentation, intentional overloading, misuse or abuse
Loss or damage to an item worth more than $2,500, unless you have added it to your policy
Mechanical, hydraulic, electrical or electronic breakdown
Theft or vandalism carried out by any member of your family or any of your employees during a period of time when they are lawfully permitted to enter or be on your premises.

For an extensive list, please refer to page 58 of the Mobile Business Protect PDS, or page 104 of the Business Protect PDS.

Question 8

What is the difference between Portable and Valuable Items and Stock?

Accepted Answer

Portable and Valuable Items refers to your tools or items which you may take with you when you're out and about and use as part of your business. For example, mobile phones, laptops, camera equipment, surveying equipment, hand tools and power tools.

Stock refers to raw materials, merchandise, and goods which you trade in your business, and at your business premises. It includes customers’ goods and property for which you are responsible but belong to other parties in a “sale or return” agreement.

Question 9

Is my Business Insurance expense tax deductible?

Accepted Answer

You will need to seek independent tax advice relating to your individual situation, however according to the ATO, ‘you can generally claim a deduction for most operating expenses in the same income year you incur them. Insurance premiums, including accident or disability, fire, burglary, professional indemnity, public risk, motor vehicle, loss of profits insurance, or workers’ compensation’ are included in the definition of operating expenses.

Question 10

What is the difference between employees and subcontractors?

Accepted Answer

An employee works for and is part of your business. As an employee, they generally:

Are paid a wage,
have set hours of work,
are entitled to paid holiday leave and sick leave,
are entitled to superannuation guarantee charge (SGC), and
are covered by workers compensation insurance.

A contractor/subcontractor operates their own business (they will generally have their own ABN) and is not entitled to any of the above benefits from the business that has entered into an agreement to contract their services.

Contractors, on the other hand, are required to purchase their own insurance prior to work being carried out, to cover themselves from liability risks or personal injury. Businesses that hire contractors should ensure that they carry their own insurance policies covering them if they are injured on site, as well as if they cause property damage or bodily injury to a third party while working in connection with your business.

Question 11

How do I make a claim?

Accepted Answer

You can conveniently make a claim online here.

If you prefer, you can also call us at 13 14 46, 24 hours a day, 7 days a week to speak to one of our dedicated claims staff. Please note that no quotes are required before you call us. We will advise you on the claim process and what you need to do next during the call.

You can also email us at lodgeclaim@gio.com.au with your policy number and a short description of the claim.

Business FAQs

Liability Insurance

Professional Indemnity

Portable and Valuable Items

General Questions

Claims

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