Sean McDermott, Everest Risk Group
The importance of Public Liability Insurance can’t be overstated. As our Sheds are a hub of activity not just for members but often for visitors and other community groups, understanding the boundaries of our insurance is crucial. Grab your favourite cuppa; we’re about to get into the details.
Unpacking Public Liability Insurance: What it Really Means
Public Liability Insurance is our financial safeguard. It protects the Shed and its members from costs which could arise if someone is injured or property is damaged in the course of Shed activities. It’s a shield, but like any shield, it has its limits.
Who’s Insured: Making the List Clear
Let’s break down exactly who falls under the umbrella of our Public Liability Insurance:
- Members: If you’ve officially joined the Shed and participate in its sanctioned activities, you’re insured.
- Volunteers: Not an official member but help out in a non-professional capacity? You’re also insured. (Think assisting with the bunnings BBQ)
- The Public: Are not an insured party. Public and Products Liability is not a cover for the public, but rather insurance for the Shed & Members against claims from the public. While a claim can be made against the policy if the public suffers injury or property damage due to the Sheds activities, they themselves are not ‘insured’ in the way the Shed, Members or volunteers are.
The Shed and Visitors: What’s Covered?
The Shed’s Public Liability Insurance provides essential protection against claims of negligence involving visitors. Say a visitor trips over some woodworking equipment and decides to file a claim, arguing the accident was due to the Shed’s negligence. In such cases, the policy could protect the Shed from any resulting legal and medical expenses.
The Limits: What Visitors Should Know
While the Shed is insured against claims involving visitors, the policy does not extend to protect visitors themselves. If another visitor or member files a claim against a visitor for something they’ve done, our Public Liability Insurance won’t provide any safeguards for the visitor in question.
Outside Groups: Sharing the Space, Not the Insurance
Sheds often become community spaces, hosting various groups for different activities. While community engagement is one of the core values, it’s crucial for these groups to understand they need their own Public Liability Insurance.
Key Points for Outside Groups:
- Activity-Specific Risks: Every group has its unique set of activities, each with its own risks. Our Public Liability Insurance is tailored to the Shed’s activities and may not cover the risks associated with other groups.
- Legal Complexity: If an incident occurs involving an outside group and a claim is filed, having separate insurance policies makes it easier to determine which policy is responsible for covering the resulting costs.
- Financial Responsibility: It’s not just a matter of legality; it’s also about financial prudence. Relying on the Shed’s insurance could be a risky move for outside groups, as it may not offer the coverage they assume it does.
Expanding Membership: Not a One-Size-Fits-All Solution
Turning every visitor or outside group member into a Shed member might seem like an easy fix, but it’s not advisable:
- Governance Issues: Expanding membership indiscriminately could make governing the Shed complex and unwieldy.
- Insurance Limitations: Even if we were to expand our membership, our Public Liability Insurance has specific coverage limitations. New “members” could find themselves unprotected in certain scenarios.
In Summary: Your Shield Has Its Boundaries
Public Liability Insurance is a powerful but specific tool. It’s designed to protect the Shed and its core activities. Knowing its limitations allows us to navigate the complexities of insurance coverage effectively and responsibly.
Of course, if you have any questions about Liability, you can always contact us:
Sean McDermott, Everest Risk Group E: [email protected]
General Advice Warning
The information provided is to be regarded as general advice. Whilst we may have collected risk information, your personal objectives, needs or financial situations were not taken into account when preparing this information. We recommend that you consider the suitability of this general advice, in respect of your objectives, financial situation and needs before acting on it. You should obtain and consider the relevant product disclosure statement before making any decision to purchase this financial product.
Everest Risk Group Pty Ltd are Corporate Authorised Representative No 276869 of Insurance Advisernet Australia Pty Ltd – Australian Financial Services Number 240549)
