Liability Insurance is a widely used form of cover as it will protect an individual or business from claims that result from injury or damage to a person or property. The costs of a claim can run into the thousands, although sometimes we see multi-million dollar claims that come from extreme situations. Nothing highlights this more than the record breaking settlements which occurred following the devastating Black Saturday bush fires.
$800 Million in Claims
Following the devastation of the 2009 Black Saturday bush fires which tragically resulted in the loss of numerous homes and lives, there have been a number of class actions against AusNet Services after it was alleged that their power lines failed and began the fires after falling onto a fence.
In December 2014, there was a settlement of $500 million following a class action of 500 plaintiffs with AusNet required to pay $378.6 million. The remaining amount will be shared between Utility Services Corporation and the Victorian State Government. In February 2015 there was another settlement of $300 million with AusNet required to pay $260.9 million, the vast majority of the full amount.
Following these settlements, AusNet was able to confirm that their insurance will cover, or have already covered, all of their contributions and costs associated with the class action settlements.
Liability Insurance Explained
The record breaking liability claim associated with the Black Saturday bush fires is an extreme example of the situations that liability insurance can cover but shows the importance of having the right cover in place to protect you from unexpected claims. For tradies, it's important to understand liability insurance and to have the right cover in place to suit you.
Public Liability Insurance is one of the most well-known types of insurance and an essential form of cover for tradies as it will cover you against the cost of a claim if you're found liable following injury to another person or damage to property following your actions at work. Product Liability Insurance, which is usually included in your public liability policy, is also important as it covers damage or injury which is caused by products you use.
Tradies need to make sure they have the right liability insurance in place to save them from the financial cost if you're found liable following a claim. The costs can involve factors such as medical bills, rehabilitation costs, legal bills, repairs and replacements.
Speak to the experts
If you're not sure where to go next with liability insurance or have any questions, it's good to speak to someone who understands your specific needs. At All Trades Cover, we specialise in providing insurance cover to tradies and can help you find the best insurance package to cover all your areas of risk. With our friendly and hassle free approach, you'll find it easy to take out liability insurance.
For any questions or for a quote on your liability insurance, contact All Trades Cover on 1300 826 850 today and we would be happy to help. To make things easier, fill in our online form for a quote.