In 2003, Margaret Hill suffered a serious slip-and-fall injury at a Coles supermarket in New South Wales. She fractured her left ankle near a refrigerated fruit display. The area had no mats or warning signage. Hill required surgery and ultimately faced lasting mobility limitations. 

Hill’s lawyers built a strong case utilising the incident report, employee testimony, and CCTV footage to demonstrate Coles’ negligence, despite the retail giant’s “clean as you go” system. The court awarded Hill $292,335 for medical costs and lost capacity. 

Importantly, however, public liability insurance covered the payout after judgment, showcasing why businesses, big or small, should invest in risk management measures. 

Understanding the Hill v Coles case can help businesses like yours see the importance of obtaining public liability insurance. At Morgan Insurance Brokers, we help you secure the right public liability coverage that protects your business, giving you the much-needed peace of mind. 

What is Public Liability Insurance?

In short, public liability insurance is designed to protect Australian businesses from major financial losses when a third party suffers either an injury or property damage due to the business’s negligence during operations. It typically covers: 

• Bodily injuries
• Property damage 
• Legal costs
• Consequential losses 
• Product liability 

While not legally mandatory, public liability insurance is considered essential for risk management. In many situations, it can be mandated by leases, contracts, councils, and specific licenses. 

For more information on public liability insurance, explore our blogs:

• What Happens If You Don’t Have Public Liabilty Insurance 
• Why Subcontractors Need Public Liability Insurance That Covers Contractual Liability
• Who Needs Public Liability & Contract Works Insurance?
• Does Contract Works Insurance Cover Public Liability Insurance?
• Why Your Turnover Matters for Public Liability Insurance
• Product Liability vs. Public Liability: An Essential Guide for Australian Businesses
• Guide to Public Liability Insurance for Sole Traders
• The Importance of Public Liability Insurance for Nightclubs
• How Morgan Insurance Brokers Saved a Local Brisbane Roofing Company $60,000 on Their Public Liability Insurance Premiums
• How Much Public Liability Insurance Do I Need?
• What Isn’t Covered by Your Public Liability Insurance?
• Do Sole Traders Need Public Liability Insurance?
• The Essential Guide to Choosing Public Liability Insurance for Your Business
• Inclusions and Exclusions of Public Liability Cover
• Sole Trader Public Liability Insurance
• What is Public Liability Insurance?

Step-by-Step Public Liability Claim Process

In Australia, public liability claims follow a clear and structured process from incident to resolution, tailored slightly by state. However, for the most part, most claims follow a similar process: 

• First steps post-incident

Following the incident, the first step would be to log details internally, i.e., photos, witnesses, and CCTV footage. The business should notify management immediately and be prepared to trigger insurer involvement. 

• Notifying your insurance provider 

Contact your public liability insurance as soon as possible. Submit a detailed claim form with evidence. Your insurer will then appoint loss adjusters to coordinate, shielding your business from claimant’s lawyers. 

• Investigation and assessment 

At this stage of the process, your business cooperates by providing the maintenance records and staff statements. Your insurer will assess against liability exposure and quantum, often defending you against inflated claims. 

• Settlement or litigation 

The goal is to aim for a swift negotiation and/or mediation, capping costs under policy limits, minimising the possibility of a public trial. In Hill v Coles, the $292K payout was fully insured, enabling Coles to preserve its operations. 

• Follow-up and preventative measures 

Review the incident to identify other potential risk factors and prevent recurrence. Implement better safety protocols, and always ensure your public liability coverage remains up to date. 

Tips for Businesses to Handle Public Liability Claims Efficiently

Businesses across the country can effectively handle public liability claims by prioritising documentation and prompt insurer notification. 

• First, and most importantly, always act immediately post-incident. Provide aid without admitting fault and complete a thorough internal incident report. 
• Next, be prepared to participate fully in the investigation. Contact your insurer within 24 hours of the incident, supplying all evidence to avoid policy breaches. 
• Start training your staff/educating your employees on hazard spotting and incident reporting. 
• Start implementing preventative measures alongside regularly reviewing and improving workplace safety procedures. 
• Last but not least, ensure the content of your public liability insurance reflects your current business operations. If your business experiences growth, adjust your coverage to minimise new risks. 

Secure Your Business Against Unexpected Claims

At any point in time, a public liability incident can happen. Obtaining the right insurance ensures your business is adequately protected from legal fees, compensation claims, and most importantly, reputational damage. 

At Morgan Insurance Brokers, we provide tailored advice that guides you towards selecting the most appropriate public liability insurance for yourself.  Our team helps you: 

• Compare different public liability insurance plans for you
• Tailor recommendations to your business
• Ensure you understand the policy before you accept it
• Support you through claims if the worst happens

Contact us today and gain the utmost confidence that comes with knowing that you’re covered when it matters most.