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Public Liability vs General Liability

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Is General Liability and Public Liability the same thing?

General Liability vs Public Liability

Yes, in New Zealand, the terms "general liability" and "public liability" often refer to the same thing. Both terminologies cover businesses against legal liabilities if a third party suffers an injury or property damage because of the business's operations.

Why do the terms General Liability and Public Liability refer to the same thing in New Zealand?

Historical Usage

Over time, different terms emerged in different countries and regions. In New Zealand, the two terms converged to mean the same thing.

Industry Standard

The insurance industry in New Zealand adopted both terminologies to mean the same thing, leading to widespread common use.

Simplicity for Consumers

To avoid confusion, it's easier for businesses and individuals when they hear both terms and know they refer to the same type of cover.

Is General Liability and Public Liability the same thing Gerrards

What exactly does general/public liability cover?

General or public liability insurance covers businesses against the financial risk of being found liable for negligence. This might include:

  • Injury to another person
  • Damage to someone else’s property
  • Legal costs of defending a claim

How does this insurance operate?

Once a business is insured under general/public liability, if an incident occurs that the business is found liable for, the insurance company steps in. They help in:

  • Assessing the claim’s validity
  • Paying out compensation if required
  • Covering legal costs associated with defending the claim
Is General Liability and Public Liability the same thing Claim

Disadvantages/Advantages or Pros/Cons?

  • Protection from Financial Loss: One major incident can result in significant expenses. Insurance ensures businesses won’t bear the full cost.

  • Business Reputation: Having insurance can enhance a company’s reputation, showing they are prepared and responsible.

  • Peace of Mind: Owners can focus on business operations without the constant worry of potential liability.

  • Cost: Premiums can be an additional cost to the business.

  • Over-reliance: Some businesses may become complacent, thinking insurance will cover all issues. It’s essential to remember that not all claims might be covered.

What are some common misunderstandings?

  • It Covers Everything: General/public liability doesn’t cover every potential risk a business might face. For example, it won’t cover employee injuries; that’s covered under workers’ compensation.

  • All Policies Are the Same: Different insurers offer different terms, conditions, and exclusions. Always read the fine print.

How can Gerrards help?

As a specialised insurance broker in New Zealand with a focus on business insurance, Gerrards can:

  • Tailored Recommendations: We understand the unique landscape of New Zealand’s business environment and can provide recommendations tailored to your needs.

  • Negotiate on Your Behalf: Our team can negotiate competitive rates and terms for your business.

  • Expertise: With our experience and knowledge, we guide businesses through the maze of insurance, ensuring they’re well protected.

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