A retail business is a business that sells products to consumers (excluding manufacturers, importers/exporters).

It is important to first explain the coverage of each of these policies. These policies do not overlap or provide dual coverage. We have summarized an overview of the common policy feature provided by each of these policies. However, each insurance company has its own policy wording. This means coverage can vary considerably from insurer to insurer, and the following summary provides only a common summary of policy features. It is important that you compare each policy based on the suitability of the coverage for your individual business needs and seek professional advice.

Public and product liability insurance policies (broad form) provide insurance coverage in respect of the insured’s liability for loss or damage caused negligently to third parties, other than the insured, as a result of an event related to the insured business.

Indemnifies the insured company against legal liability to pay compensation in respect of claims for personal injury or property damage arising in connection with the Product and/or Service sold or supplied by the insured, however, it does not cover the product warranty and is always subject to the terms, conditions and legal notices.

In addition, these policies also cover defense expenses even if the action against you is false or fraudulent, and establishes that there is no excluded circumstance.

Personal Injury – Coverage may include:

– Death, bodily injury, illness, disease, disability, shock, fright, mental anguish and mental injury

– False arrest, wrongful detention or imprisonment and malicious prosecution

– Unjustified eviction

– Assault or Battery

– Insult, slander, defamation of character or invasion of the right to privacy

Property Damage – Coverage may include:

– Physical damage to tangible property

– Loss of use of tangible property that has not been damaged but cannot be used due to Damage to other tangible property

Additional comments

Common Exclusions – Advice for a fee

– Does not provide coverage for pure financial loss when no injury or damage has occurred

Policy trigger for a claim: bodily injury or property damage

Professional Civil Liability Insurance protects an individual and/or company against claims by a third party for financial compensation arising from the breach of their professional duty. It is essential protection for professional advisers who provide professional advice or expertise to third parties.

Provides compensation for claims brought against the insured company and its directors, partners and employees for financial loss arising from a breach or alleged breach of their professional duty in the course of conducting their business.

Policy features may include:

– Trade Practices Legislation – Defamation and Slander – Dishonesty

– Loss of Documents – Defense Expenses – Coverage of Official Consultations

Professional indemnity insurance is generally intended to provide protection for:

– settlements, indemnities and/or damages awarded against you;

– legal costs and other expenses associated with defending a claim.

Who is a professional adviser?

Anyone who gives advice and/or services of a skillful nature to another person in accordance with an established discipline may be considered a ‘Professional’ adviser.

Why do Professionals need Professional Civil Liability Insurance?

A professional will present himself as possessing a special skill, which another can rely on. Consequently, the law requires the Professional to exercise the required skill at an appropriate level expected by that profession.

Professionals are human and mistakes happen. Any loss, injury or economic damage arising from a mistake or failure to exercise the required level of skill on the part of the Professional may mean that compensation is awarded in favor of a person who suffers a loss, damage or injury. A professional can also be held liable for an error even if there was no negligence.

In the event that a financial loss, injury or damage arises from failing to provide the appropriate level of skill, it may result in liquidated damages being awarded to the third party who suffers the financial loss, injury or damage. Professional Civil Liability insurance provides coverage for damages awarded against the Insured Person and/or the Company, including costs or expenses incurred in defending the claim.

Additional comments

Policy trigger for a claim: Financial loss resulting from a breach of professional duty.

It’s important that professional liability insurance and product and liability insurance work together to ensure that the major exposures of your business are covered.

When should a retail business that sells and supplies products consider professional liability insurance?

Several key areas business owners should consider when selling and supplying products:

• A business that charges a separate fee for advice must have professional indemnity insurance that covers its business in general or the area of ​​its business that it provides advice for a fee. As mentioned above, liability insurance policies generally exclude advice for a fee, so in the absence of professional indemnity coverage, claims arising from advice for a fee would not be insured. . For example:

computer retailer

A computer retailer that supplies products and charges a separate fee to program and install software/hardware.

• If a Retailer provides advice in accordance with its product sales and manufacturing instructions and does not provide a separate fee for advice with respect to its product sales. In the event of a claim arising from negligence in connection with the sale of products resulting in injury or damage, your liability insurance policy generally must respond (subject to the terms and conditions of the policy’s coverage).

However, for some retail businesses, in the case of negligence, their customers may not necessarily suffer injury or damage, but pure financial loss. We provide the following examples:

fertilizer retailer

In the event that the wrong fertilizer was provided and the crop did not produce, there may not necessarily be any physical injury or damage, just pure financial loss.

swimming pool company

Supply of pool chemicals (licensing also requires pool companies to maintain professional indemnity insurance)

A business owner should always seek professional advice when obtaining and reviewing their insurance. Insurance products are legally binding contracts and, under applicable law, all parties to an Insurance Contract have a responsibility to know the details of that Contract. Insurance companies are not licensed to provide advice and can only explain the features of their products. They do not advise on the suitability of coverage for a business.