Most businesses choose to insure themselves against public liability claims. Although insurance is not a necessary evil of conducting business, claims for any injuries a customer or general member of the public incurs while in the vicinity of your business, your parking lot, or any other public spaces on your lot can be quite expensive. With most claims running in the six-figure settlement arena, many small businesses choose to purchase policies covering millions of dollars of public liability insurance.
Typical examples of public liability claims include:
- Injuries due to uneven sidewalks, driveways, paths, steps, or stairs. For example, a customer who trips on a loose brick in a walkway could open a claim for injuries.
- Injuries due to slipping, tripping, or falling within your store/business or on your public grounds (restrooms, gardens, cafeterias). For example, a customer who slips in a grocery store aisle could sue for injuries.
- Injuries from falling objects that occur on your property. Even non-customers who walk by your property could open a claim. For example, a member of the general public who walks by a construction site and is hit by a falling hammer can open a claim against the construction company.
However, many other public liability claims may occur in situations that do not fall into any of the above categories. Property damage due to business practices also falls under public liability claims. These claims can include, but are not limited to, the following:
- A mechanic who makes house calls works on the brakes of a customer’s truck. As he tests the brakes, he drives into the back of the customer’s garage. The mechanic is responsible for the repairs.
- A lawyer based in an office suite has a window air conditioner, and it falls from the window due to improper installation. The shop below her has an expensive commercial awning, and the unit rips through the awning. The lawyer is responsible for the damages.
- A horse trainer works on a five-acre plot connected to a neighboring orchard. A horse breaks free and tramples a full acre of newly planted seedlings. The trainer is responsible for the seedlings.
Other public liability cases are opened because of defective products. One of the most famous cases is the McDonald’s hot coffee case in which a customer spilled hot coffee in her lap, receiving third-degree burns. McDonald’s was forced to pay almost three million dollars in punitive and compensatory damages for maintaining their coffee at a dangerous190-degree temperature. Other defective or dangerous product cases include:
- Defective children’s toys. Recently, some toys made in China were recalled for high levels of lead in the product.
- Defective food. A few years ago, many dog food companies recalled their food for defective product.
- Defective electrical equipment. In 2010, Whirlpool recalled a dishwasher series with a possible defective chip. The dishwashers were all potentially dangerous, as the chip had been proven to start the dishwasher on fire.
With so many examples of injuries, property damage, and defective products, it is not surprising that the majority of businesses choose to protect themselves from unknown and unforeseen costs of conducting business: public liability claims.
{ 20 comments… read them below or add one }
My son has fallen out of a window whilst sleep walking. He has sustained serious tear to bladder and will need upto six weeks of work. He lives in a rented property. His landlord has told his wife that he checked to see if a possible claim could be made against his public liability but was told because the house is over 30 years old, the windows don,t apply to Australian Government standards. Would this be correct?
Not necessarily, common law and statute law, ie the requirement to identify and control risks could override minimum standards. Recent claims have been made against Housing Dept for not installing hand railing on an older house in accordance with current standards. I cant make any more comments without knowing the full details
See our article here http://www.safetyrisk.com.au/2010/06/18/balustrade-and-railing-height-regulations/
Son falling out of window of rented home which is over 30 years old. Is landlord liable through his public liabilty even though home,s window doesnt conform to Australian Standards now in place for window height. My son will be off work for upto 8 weeks.
my husband met an accident in a steps the steps break and he fall and broke his wrists we are trying to claim for a worksafe but we are rejected can we claim for liability as this happened to their place. He is a shearer and he supposed to shear the sheep but did not started yet because he met this accident.
what can you advise can we sue them for public liability?
Was he an employee? If he was then who rejected the Worksafe claim. Was it Worksafe or did the employer just say he couldn’t claim?
If not an employee, then he may be able to make a claim for negligence if what you are saying is true and he had the accident on their premises, due to faulty stairs? (not at your home?). If there was nothing wrong with the stairs then it will probably be very difficult to make a claim. I cannot give you legal advice or any advice without more information – you should go and see a lawyer as soon as possible.
My daughter was injured when in a retail store change room, a broken security tag with a sharp point got embedded in her foot and could not be removed without a paramedic being called. Interestingly this happened to another girl in the next cubicle at the same time!
She has costs such as the ambulance charge, lost wages for the day and limping has caused a hurt back and needed to go to a chiro. The total amount is just under $600. Numerous calls and a letter of demand to the owner of the store are basically being ignored. They are citing they are waiting for thier insurer to advise.
Do we need to wait this process? or should the owner pay up first and if they can claim thats their problem? and can we insist on finding out who the insurance company is as we doubt this has been submitted and we are being given the run around.
While riding my mountain bike i became caught up in electricial wriing from a light pole mound. My left foot and bike pedal got caught in the wiring causing me to fall on my right side, injurys to my shoulder and collar bone. The wiring from the light pole mound was 24 cm out from where it should of been and also bolts on the ground as well.
A witness saw me fall hard. There was no signage,cover and any safety for the public.
I have taken pictures,seen doctors as well.
After informing the council of this matter 36 hours later the area was concreated and all wiring fixied up and a light pole put up asap…. Do i have a solid case
It can be very difficult to sue a Council, otherwise they would be sued for every pothole, tree root and crack in the footpath. You have to prove that they were negligent ie should have known about it and should have fixed it. They could argue you were involved in a sport with known risks or were riding off the designated path?????????????? I cant really comment without knowing thye full story. First thing to do is write to them and seek compensation for your medical bills and any damage to your bike, follow up with several phone calls to the right person and not the receptionist (ie General Manager, Engineering Manager or Risk Manager). If no response then see a Lawyer who will decide if you have a case. Be aware that it could be a long drawn out process and any payout could be eaten up by fees. If you are involved in such sports then you should have accident insurance and let your insurance company fight the Council.
i was standing on a fence in my backyard of rental property retrieving a football out of a tree, when the fence gave way and i took a fall, resulting in my foot being severely cut, straight through nerves and sliced into my tendon down to the bone across the top of my foot, and then landed on my other foot which is severely sprained. spending 5 days in hospital and having to have emergency surgery, my doctor has told me my foot will never be the same (feeling and movement) and as i am a builder, this is not good news for my work. My landlord and real estate agent had told us upon moving in last june (2010) that they would fix the fences within the first few weeks and has not ever been done! the fence i fell from is ajoining to a service station and is only 1500 high and i have since been told by a friend that the surrounding perimeter of a servo should be at least 2m high and sturdy!! So what i would like to know is, if i am up for any public liability payouts as im not able to work for a while, and may possibly never be able to do some jobs in my field
Firstly, you arent automatically “up for any public liability payouts” unless you successfully make a claim against the landlord and/or the Service Station Owner. To be successful you need to prove they were negligent by knowing about the risk and doing nothing reasonable about warning you and/or fixing it. They could argue that they discharged their duty of care by warning you about the fence (ie saying it needed replacement). It could also be argued that you contributed significantly to the incident by climbing on the fence when you knew it was in poor condition. This arguement could be strengthened by the fact you are a Builder and could reasonably be expected to recognise an unsafe structure?
You would have to speak to a Lawyer about making a claim. Make sure you collect all relevent documenation, photographs etc. Including any correspondence. Whenever someone promises to do something you should get it in writing and then follow up in writing if it is not done as promised.
Hi I slipped in Kmart on a coat hanger and popped my knee out i reported it to Kmart manager, i have been to all my doctors appointments and an Orthopedic Surgeon who has advised me that i need a knee reconstruction for my ACL Ligament, Meniscus and Cracked cartilage. My lawyers secretery said i have to wait 6 months after surgery to see what the real damage of my knee was and how its affected my everyday duties eg life style. Is that how the process goes?? Do they do it that way to get more money?
Thanks
Hi
Unfortunately that is pretty much how it goes, your Lawyer would/should have put up a fight otherwise – its not necessarily Kmart but their Lawyer/insurers wanting to determine the actual long term cost to you ie loss of income, it could work out better for you if your injuries are more found to be more debilitating or permanent rather than just cut you a cheque now??. These things can go on for years. I dont know what state you are in but your lawyer is the best one to advise.
My husband hit his head at work on a metal bar. 2 weeks later he required surgery for a subdural haematoma. He was cleared by the surgeon & GP to recommence work – returning to full duties after being on workers comp for 3 months. He advised the Labor Hire company that he had been cleared to return to work but they advised him they no longer had any work/positions available for him! Now he is unable to find work – no one is prepared to hire a 61 year old who has just recovered from brain surgery – the workcover claim has been closed and he is not entitled to any benefit. Are we able to lodge a liability claim against the ‘host’ work site? There was no site induction carried out by the labor hire company or the ‘host’ employer. The metal bar that he hit his head on is very low and requires bending down to access the area my husband was working in. Comments by other workers suggested he was not the first one to hit there head on this metal bar. My husband reported the accident to the warehouse manager – but no incident/accident report was filled out!!!! I’ll look forward to your views regarding this ‘mess’!
Labour Hire personnel and/or their work comp insurers have successfully claimed against host employers. It may be an issue that you have already had a Workcover claim. You really need to talk to a lawyer about making a claim against the host employer, you may have a case but be prepared for a long battle.
Hi there, my mother recently slipped over in a pile of squashed grapes and other liquid at a very large supermarket chain. As my mother fell, she hit her back on a stand on the way down. She has had x-rays and found a fracture in her back with cuts and bruises on her back and arm. She could not get herself up when it happened and now has trouble walking. A customer in the store got the manager and made my mother report it. There were no signs at the shop saying “slippery floor” etc. I have had to cut back on my days at work to get her around to the Drs, do her shopping, help around the house and walk her dog as she cant even do that anymore. She had to miss several of her grandkids events as its to much for her now..
Is there anything she can do in regards to this incident as its very frustrating and we don’t know where to turn.
Thanks for your time, Ben
All you can do is see a lawyer and make a claim against the retailer – but it wll be a long and expensive process
I am 22 years old I have a current compensation claim as my back have compressed disks causing nerve compression from heavy lifting. I was walking across a predestrian crossing and I tripped on a mound of tar in the middle of the crossing I have serverly hurt my back again it was getting beter slowly (6 months off work) now I find myself in bed unable to move. Do I have a case?
Hard for me to say without all teh info. You really need to talk to a lawyer
my mother sustained serious injury when the taxi driver of a medicab pressed the wrong button and she fell backwards out of the medicab onto the bitumen while still in her wheelchair. How do i make a PL claim againsta the comapny without a lawyer?
You can try writing to them outlining what your medical expenses were and they may assist you. But if you are after anything else then you have no real option but to take legal action