Public Liability Insurance News

Sun, 19 August 2007
MBF To List On ASX
MBF Australia said it intends to demutualise and list on the Australian stock exchange in an attempt to grow and diversify its business. The health insurer said its plans have been endorsed by the MBF Council. It said a share market listing is likely in calendar 2008. The board believes that demutualising is in the best interests of policyholders, that it will maximise MBF's future growth potential and enhance its ability to compete in a rapidly changing environment," chairman John Conde said.

Mon, 25 August 2008
How much is your life worth?
By Sarah Mills, ninemsn Money

Putting a number on your life can be a bit disconcerting, possibly even disappointing. The thought of mortality can be sobering and many people avoid the issue altogether. However, we are all going to die and it is common sense to address the topic of life insurance sooner rather than later.

By your mid-30s the chance of contracting a degenerative disease starts to rise sharply. Degenerative diseases include cancer, heart attack, diabetes, arthritis, Parkinson's, Alzheimer's and multiple sclerosis, to name just a few. Any of these can cause debilitation or death, as can an accident.

How much should I insure for?

Deciding on a life insurance payout can be tricky. Some might consider themselves priceless but insurance companies prefer to deal in specifics and they do have limits.

Generally, the higher the lump-sum payout, the higher the premium — to a large extent insurance companies leave it to the individual and market forces to arrive at a figure.

A $1 million term insurance policy, for example, will normally cost a healthy person in their late thirties about $70 a month or $840 a year. Many insurers put an upper limit of about $2 million on an average life. If you wish to insure for more than this, you may have to take out separate policies with different companies.

When calculating the amount of life insurance you want, the first step is to calculate your cost of living — mortgages, bills, food, rent, debt, clothing, transport and so on. This will help you determine how much money you will need to survive if you are unable to work because of a life-threatening condition or how much money your family will need to survive in the event of your death.

One quick method to estimate life insurance is to calculate your gross annual income and times it by 20 years. An average gross weekly family income of $1324 translates to about $70,000 a year or $1.4 million over 20 years.

However, insurance is needs based and the amount you insure for should primarily reflect your stage in the life cycle.

Single people

A single person with no dependants does not have a great need for life insurance. Any policy would only really need to cover net debts and funeral costs. Average personal debt outside home loans includes HECS debt, credit card debt, car loans and personal loans and averages $14,400.

Married couples

For those married with a mortgage, the stakes rise. If one partner dies, the capacity of the remaining partner to repay the mortgage is severely compromised. This is exacerbated by the fact the economies of scale on the cost of living available to couples are withdrawn. Any insurance would need to cover mortgage repayments, other debts and funeral costs, with something left over as a cushion to fund the grieving period.

Couples with children

Life insurance is critical for people with children. According to ABS statistics, 4400 parents die each year. While this is only a small percentage of the 2.7 million families in Australia, if you or your partner prove to be one of the 4400, that is little consolation.

A report by AMP and the National Centre for Social and Economic Modelling shows an average family is likely to spend about $448,000 in today's dollars to raise two children from birth to age 20. Another report in The Bulletin in 2005 estimated that the cost of raising a child to age 18 for a typical higher income family was just over $500,000.

It would be safe to assume then that the parents of a two-child family would need to be insured for at least $1 million. This would cover mortgage repayments, education, food, clothing and other expenses over the life of the child. Inflation also needs to be incorporated into the calculations. Those with businesses also need to calculate business debts and assets.

These figures assume a speedy death. For those suffering loss of income arising from a health problem, medical costs also need to be factored into the equation.

Life insurers offer a number of packages to meet the life stages of different individuals and they usually offer a lump sum or pension in the event of death, total and permanent disablement, accident and trauma. Working from an average figure like this, you will need to determine how much you are prepared to insure yourself for. If a family can't afford to insure both parents, the primary wage earner should be insured.

Types of insurance

How much you insure your life for will depend very much on the type of policy you take. Offerings usually fall under the following categories:

Term insurance

Whole-of-life insurance

Income protection insurance

Accident insurance

Mortgage insurance

Business overheads and insurance

Trauma insurance

Policies that mature and return a lump sum or a pension after a certain period are more expensive and have an investment component. They can be regarded not only as insurance but as savings.

Premiums

Your premiums will be set according to your risk rating. Insurers have four general risk categories:

Preferred

Standard

Substandard (this normally refers to those with a high-risk job or hobby)

Uninsurable (those with a terminal illness)

Beneficiaries

Insurance companies will issue a beneficiary form to new policyholders, asking them to nominate the payee. It is essential that this is completed, otherwise the lump-sum payout can get held up in the estate — sometimes for years, depending on how quickly a will is processed.

It means the proceeds will go directly to your nominated beneficiary as soon as the claim has been processed. This means your loved ones will have access to sorely needed funds in the shortest possible time. Under law, the person nominated on the insurance beneficiary form takes precedence over the benefactors of a will.

Joint or single insurance

Most couples have the option of taking out joint or single insurance. Joint life policies are cheaper but they usually pay out on the death of the first policy holder, leaving the second person uninsured at an age when the premiums shoot up in price. However, so long as all obligations have been met by the first payout, this may be worth it.

Thu, 11 September 2008
Top ten insurance questions
My insurance company did not send me a renewal for my policy. What can I do now that we have a burst pipe that has caused damage to our carpet?

Under the law your insurance continues under the same conditions. However, the insurance company may have evidence that the renewal was in fact sent, so make sure you didn't just forget to reinsure. Check out our fact sheets on settling insurance disputes if the insurer does not come to the party.

Why should I tell my insurance company about something that has happened to me in the last twelve months, even if it increases their risk, if they do not ask it on the policy?

This will be part of your insurance policy. Sometimes the question is specifically asked e.g. whether you have modified your car in the last twelve months. If the question is not asked, and it is something you wish to keep confidential, you should get legal advice before the policy expires. Remember, if you do not disclose a material fact the insurance company may be able to avoid paying on a claim, so make sure you get advice.

We suffered loss because of an accidental breakage in our house. The event is covered by the policy, but the damage was caused by one of my son's friends. Are we covered?

It depends on what the policy states. For instance, it is generally accepted that losses are covered if the damage is caused by family members living permanently in the house. To check out this situation ring the insurance company or your broker, read the policy carefully, and if the loss is significant and you are still not covered, you might want to seek legal advice.

Is it possible to get insurance for my gardener? Can I add it to my home insurance?

Yes. You should get in touch with your insurance company or your broker and see what can be done. It is always a good idea to ensure that people working on your property are covered for accidents and other losses. However, first find out what sort of insurance the gardener carries.

Will the insurer check all the details of my application for car insurance?

If not I might be able to hide the fact that I have had three accidents, all my fault, in the last year. In fact the insurer may not check the accuracy of the information you give, but it may mean that when you make a claim it will be refused. In other words, there is every possibility that the information will be checked at the time you make a claim, and therefore a serious possibility that payment will be legally rejected.

Should I review my level of home insurance?

Yes, you should do this on a regular basis, especially with regard to the market value of the house.

My car insurance application asks whether I have any traffic offences in the last five years. Surely they are not interested in my speeding fine last year?

You should declare any traffic offence, no matter how innocuous. If you do not do this there may be grounds to refuse a claim in the future. Better to be safe than sorry.

I think I paid too much for my insurance. Can I complain to the IEC?

No, the IEC does not deal with these types of disputes.

I got a favourable decision from the Insurance Enquiries And Complaints. However it took months from the time my original claim was rejected, and in the meantime I have had to rent furniture. Can I claim those expenses?

No. Unfortunately for you the IEC can only order interest be paid on the amount of the claim due to the delay.

Do I have to pay the insurer if I lose at the Insurance Enquiries And Complaints?

No. This is one of the big advantages of the dispute resolution scheme.

Source: Financial Services Online

Sun, 21 September 2008
To insure ... or not to insure
A question oft posed by many a business or household is whether insurance is really worth the expense. After all, the "It'll never happen to me" syndrome (unless we're talking about death) always seems to strike at the hip pocket.

And while taxation rarely forms part of this decision, the Tax Office will often be wanting their share of any compensation.

Where the compensation is to make good lost income it will be of a revenue nature and taxable to the recipient.

Where the compensation is for the loss of destruction of a capital asset the compensation will have the unmistakable character of capital.

In that case, it will only be taxable if caught by the capital gains tax ("CGT") provisions of the Tax Act.

Death Cover

Never a truer word has been uttered than by Benjamin Franklin when he said that there were only two certainties in life - death and taxes.

When he spoke these words we doubt he contemplated taxation on death.

Fortunately, the Tax Office also does not contemplate tax on death (in most circumstances).

Losses as a result of death are capital in nature and, therefore, payments to compensate for these losses are almost always non-taxable.

However, proceeds of death cover may be revenue in nature in limited circumstances, such as where they are intended to compensate a business for a temporary loss of income between the death of an employee and the employment of a suitable replacement.

Superannuation Death Benefits

Death benefits received from a Superannuation fund will not be taxable provided they are paid to a dependent of the deceased and do not result in the deceased exceeding their reasonable benefit limit.

Where death benefits from a Superannuation fund are paid to a trust, or to the deceased's estate, they will be taxable under the eligible termination payment provisions. In this case, the commissioner has the discretion to treat the benefit as paid to a dependent and he will usually do so if he is satisfied that the money will ultimately be paid to dependents.

Accident and Disability

As a general rule, periodical payments made in substitution for lost wages, or which otherwise compensate for loss of income, are themselves of an income nature and taxable.

On the other hand, lump sum compensation for the loss of earning capacity generally is a capital receipt, as the ability or capacity to earn income is a capital asset.

However, the answer may not always be so clear.

Between these two extremes lie a range of possible outcomes.

The proceeds of a personal disability insurance policy, received as a series of periodic payments, are assessable where the purpose of the policy is to provide a periodic indemnity against income loss arising from the inability to earn.

This is true even when there is no actual loss of earnings.

In circumstances where an accident or disability policy is taken out to provide compensation for the loss of an earning capacity and the recipient receives a lump sum payment, such a payment should not be assessable income to the recipient.

However, if the compensation is received as periodic payments then that, together with other factors, may change what would otherwise be capital amounts into income.

Trauma Policies

Trauma policies usually pay out a specified amount in a lump sum form. In such cases the pay-out is of a capital nature.

Where the compensation is in a different form, the taxation treatment needs to be determined having regard to the factors discussed above.

CGT

The CGT provisions do not generally apply when there is a pay-out under a life insurance policy.

However, they do apply where the recipient is not the original beneficial owner and acquires the rights under the policy for consideration.

If the compensation is of a capital nature, it will be necessary to consider the CGT provisions.

Compensation or damages received for any wrong, injury or illness suffered personally by the taxpayer or relative is also specifically exempt from CGT.

Death, Disability and Taxes

An event of death or disability is no time to discover that the Tax Office will be taking a hefty slice of any insurance proceeds.

There is no time like the present to consider the structure and nature of any insurance policies entered into, to ensure that the after tax proceeds of the policy are sufficient for your needs.

By Financial Services Online

Mon, 29 September 2008
The Importance Of Public Liability Insurance
The Importance of Public Liability Insurance

One of the more common subsidiary’s of the wider ‘Liability Insurance’, Public Liability Insurance, whilst not a compulsory business insurance, can be a lifeline for any working company or individual should something an incident occur with a member of the public.

What is Public Liability Insurance and why is it needed?

Ideal for any individual or company working with the public, or where the public visit a company’s premises, Public Liability Insurance ensures that the company or individual is covered should an accident occur to a member of the public on their premises. Further to this, Public Liability Insurance also covers any accidents or incidents that may occur when the individual or company is carrying work out on their client’s premises.

Including the cost of all legal fees’ that may occur, whilst not mandatory, Public Liability Insurance is highly recommended for anyone carrying out work with the public.

It has to be noted that Public Liability Insurance only covers claims from third party’s and not employees of your company. This is where Employer’s Liability Insurance comes into play.

What exactly does it cover?

Public Liability Insurance covers the individual or the company in the event of an accident on your premises or their premises. Imagine one of the following scenarios –

A small-scale wedding business has just opened its first shop in a small shopping centre. When trying on a selection or wedding dresses, a lady trips on one of the wedding dresses that has been left on a chair, trailing on the floor, breaking her wrist. Public Liability Insurance would cover any expenses incurred should the lady pursue a claim against the business.

Out on location for magazine photo shoot, a freelance photographer leaves one of his tripods lying down on the floor. A member of the public walks by and falls over the tripod and injures her arm. Public Liability Insurance with ensure that the photographer was covered if the member of the public claimed against them.

How much cover is needed and how much will it cost?

For small businesses, Public Liability Insurance with a cover of £1m will generally suffice. Whilst the figure of £1m may seem excessive, if an incident happened and several claims were made against the company or individual, then the costs can soon mount up.

The positive side about Public Liability Insurance is that, although the cover of £1m is a substantial one, it is not directly reflected in the premiums that are paid. It’s impossible to give a ‘general’ premium cost, as it varies quite considerably from business to business. Companies such as pubs and shopping centre’s will have a much higher premium than a self-employed consultant who works 90% of the time from home, as there is a much more higher risk that an individual will be injured in the shopping centre than there is when in contact with the self-employed consultant. However, for a small business with a modest footfall figure, Public Liability Insurance can be purchased from around £10 per month, which is a small fee to pay should something happen resulting in a claim needing to be made.

Public Liability Insurance is an insurance that all business should have if they have some contact with the public. It’s not a compulsory insurance - but it definitely should be.

By: Rakesh Gaikwad

Mon, 06 October 2008
The Importance Of Public Liability Insurance
The Importance of Public Liability Insurance

One of the more common subsidiary’s of the wider ‘Liability Insurance’, Public Liability Insurance, whilst not a compulsory business insurance, can be a lifeline for any working company or individual should something an incident occur with a member of the public.

What is Public Liability Insurance and why is it needed?

Ideal for any individual or company working with the public, or where the public visit a company’s premises, Public Liability Insurance ensures that the company or individual is covered should an accident occur to a member of the public on their premises. Further to this, Public Liability Insurance also covers any accidents or incidents that may occur when the individual or company is carrying work out on their client’s premises.

Including the cost of all legal fees’ that may occur, whilst not mandatory, Public Liability Insurance is highly recommended for anyone carrying out work with the public.

It has to be noted that Public Liability Insurance only covers claims from third party’s and not employees of your company. This is where Employer’s Liability Insurance comes into play.

What exactly does it cover?

Public Liability Insurance covers the individual or the company in the event of an accident on your premises or their premises. Imagine one of the following scenarios –

A small-scale wedding business has just opened its first shop in a small shopping centre. When trying on a selection or wedding dresses, a lady trips on one of the wedding dresses that has been left on a chair, trailing on the floor, breaking her wrist. Public Liability Insurance would cover any expenses incurred should the lady pursue a claim against the business.

Out on location for magazine photo shoot, a freelance photographer leaves one of his tripods lying down on the floor. A member of the public walks by and falls over the tripod and injures her arm. Public Liability Insurance with ensure that the photographer was covered if the member of the public claimed against them.

How much cover is needed and how much will it cost?

For small businesses, Public Liability Insurance with a cover of £1m will generally suffice. Whilst the figure of £1m may seem excessive, if an incident happened and several claims were made against the company or individual, then the costs can soon mount up.

The positive side about Public Liability Insurance is that, although the cover of £1m is a substantial one, it is not directly reflected in the premiums that are paid. It’s impossible to give a ‘general’ premium cost, as it varies quite considerably from business to business. Companies such as pubs and shopping centre’s will have a much higher premium than a self-employed consultant who works 90% of the time from home, as there is a much more higher risk that an individual will be injured in the shopping centre than there is when in contact with the self-employed consultant. However, for a small business with a modest footfall figure, Public Liability Insurance can be purchased from around £10 per month, which is a small fee to pay should something happen resulting in a claim needing to be made.

Public Liability Insurance is an insurance that all business should have if they have some contact with the public. It’s not a compulsory insurance - but it definitely should be.

By: Rakesh Gaikwad

Thu, 16 October 2008
WHAT IS LIABILITY?
Public Liability (sometimes known as General Liability) is part of the law of torts which focuses on civil wrongs. Applicants (the injured party) usually sues the respondent (the owner or occupier) under common law based on negligence and/or damages. Claims are usually successful when it can be shown that the owner/occupier was responsible for an injury therefore they breached their duty of care.

The duty of care is very complex but in basic terms it is the standard by which one would expected to be treated whilst they are in the care of another. An example of this is you are travelling by train, and the train derails because the wheel breaks. If you suffer an injury because of the de-railment of the train, and it can be shown poor maintenance caused the wheel to break, the owners will have breached their duty of care.

Once a breach of duty of care has been established an action brought against you in a common law court would most likely be successful. Based on the injuries and the losses of the applicant the court would award a financial compensation package.

In America, although the law is a little different many actions are brought against businesses for negligence. Sometimes these are very expensive and many businesses are forced to close as a result of this type of legal action. America is by far the most vicious country in the world for costly litigation.

In Asia the law has not developed to the same extent although the law does recognise negligence. Most professional are predicting this development to occur rapidly and within the next 10 years

In Australia the general public have become more conscious of their legal rights. In recent times businesses have been faced with more actions under common law this could be attributed to the press reporting cases where the settlements have been very high.

Other reasons why there has been an increase in claims could be due to the fallout from some states Workers Compensation freezes where limits have been put on claims for workers compensation making public liability a more financially attractive option. Whilst there is no avenue for anyone of your employees to claim against your public liability policy the following example shows how an employee from another business can be presented with an option to claim one or the other.

In the past an employee in another business may decide to buy their lunch in a shopping centre. If that employee slipped over and broke a leg in your business they may be able to claim on their employers’ workers compensation policy or your public liability insurance. As common law settlements are much higher than workers compensation pay outs there is a certain amount of attraction towards a claim against your public liability.

Another reason for increases in claims could be due to solicitors becoming more approachable to the public. Many solicitors now offer their first consultation for free. More recently some solicitors assess cases, and if there is a high probability of winning the case they may offer no win, no pay.

Source: Risk ex



Thu, 23 October 2008
The Ins And Outs Of Public Liability Insurance
With the compensation culture increasing around the world, having public liability insurance is becoming more and more important. If you donâ€t have public liability insurance included in your current building insurance, then now is the time to look at getting better cover. Here is some advice about why you need public liability insurance, and what to look out for:

What is public liability insurance?

Public liability insurance is an insurance policy that protects you from claims that other people might make against you in the event of an accident. If someone damages their property or injures themselves in or around your property or business then public liability insurance will cover you for any compensation claims that might occur. Cover usually ranges from £250,000 up to £1 million.

What are you covered against?

Public liability insurance will insure you against accidents or loss that others might suffer in or around your home or business premises. You are covered against claims from trespassers, as well as injury that might occur to anyone from falling objects or people carrying out repairs. If an accident occurs on your property and someone claims against you, your insurance will help you pay any compensation.

Included in your contents insurance

Some contents or property insurance policies have in-built public liability insurance. You should check with your insurer whether this is the case, and what level of cover you have. Even if the insurance is included, you need to make sure that you are adequately covered for any accidents that might occur.

Premiums

The premiums that you pay depend on the level of coverage you want. If you are simply covered your home, then premiums are likely to be lower than if you are covering a business. However, premiums are relatively cheap for the level of cover that you are afforded, and it is therefore essential for anyone running a business. With compensation claims on the rise it is also a good idea for homeowners to have adequate public liability insurance.

Dangers of not having insurance

If you donâ€t have public liability insurance then you could end up with a massive compensation bill. If you are at fault or negligent and someone makes a claim against you, then you will have to pay the full level of compensation if uninsured. A claim might range from a few hundred pounds to a few million for more serious accidents. If you cannot pay the claim amount then you could lose your home and other possessions in order to pay for the claim.

Requirements

Some businesses are required to have public liability insurance, such as horse riding schools. Any type of business that has some obvious risk to the public will be required to have public liability insurance. Also, many businesses and customers will want proof that you have public liability insurance before they work with you, in case anything should happen and a claim is made.

Source:Peter Kenny is a writer for creditcards-gb.co.uk. For additional articles and an extensive resource for everything about credit cards, please visit us at UK Credit Cards and Business Insurance Visit www.creditcards-gb.co.uk



Tue, 28 October 2008
The Funnier Side of Insurance
The statements below are taken from actual insurance accident claims forms. They are real, true (you can't make up this kind of stuff). Read 'em and laugh and be glad it wasn't you.

The guy was all over the road. I had to swerve a number of times before I hit him.

A pedestrian hit me and went under my car.

I collided with a stationary truck coming the other way.

A truck backed through my windshield into my wife's face.

The other car collided with mine without giving warning of its intention.

My car was legally parked as it backed into another vehicle.

I started to slow down but the traffic was more stationary than I thought.

The accident occurred when I was attempting to bring my car out of a skid by steering it into the other vehicle.

I was unable to stop in time and my car crashed into the other vehicle. The driver and passengers then left immediately for a vacation with injuries.

The gentleman behind me struck me on the backside. He then went to rest in a bush with just his rear end showing.

The car in front of me stopped for a yellow light, so I had no choice but to hit him.

Coming home I drove into the wrong house and collided with a tree I don't have.

I told the police that I was not injured, but on removing my hat found that I had a fractured skull.

I pulled away from the side of the road, glanced at my mother-in-law and headed over the embankment.

I thought my window was down, but I found it was up when I put my head through it.

As I approached an intersection a sign suddenly appeared in a place where no stop sign had ever appeared before. I was unable to stop in time to avoid the accident.

In an attempt to kill a fly, I drove into a telephone pole.

I saw two kangaroos having it off in the middle of the road. So I hit them, which caused me to ejaculate through the sunroof.

I was thrown from my car as it left the road. I was later found in a ditch by some stray cows.

I pulled in to the side of the road because there was smoke coming from under the hood. I realized there was a fire in the engine, so I took my dog and smothered it with a blanket.

No one was to blame for the accident but it would never have happened if the other driver had been alert.

I had been shopping for plants all day and was on my way home. As I reached an intersection a hedge sprang up, obscuring my vision and I did not see the other car.

The indirect cause of the accident was a little guy in a small car with a big mouth.

I was on the way to the doctor with rear end trouble when my universal joint gave way causing me to have an accident.

On approach to the traffic lights the car in front suddenly broke.

No witnesses would admit having seen the mishap until after it happened.

I had been learning to drive with power steering. I turned the wheel to what I thought was enough and found myself in a different direction going the opposite way.

The accident happened when the right front door of a car came round the corner without giving a signal.

I had been driving for forty years when I fell asleep at the wheel and had an accident.

An invisible car came out of nowhere, struck my car and vanished.

Source:Frank Hills

The accident happened because I had one eye on the truck in front, one eye on the pedestrian, and the other on the car behind.

Tue, 04 November 2008
Disability Income Insurance - Protection In Troubling Times
Nobody likes to think about being disabled. Unfortunately when accidents strike they will quickly change your financial outlook. What disability income insurance options do you have if you find yourself disabled, temporarily or otherwise? In other words do you have a plan of action if you don't have, or plan to take, disability income insurance?

There Are 2 Types Of Disability Income Insurance Contracts:

* Non-cancellable: premiums are guaranteed level for the life of the contract unless the benefits are increased.

* Guaranteed renewable: Company reserves the right to increase the disability income insurance premiums for everybody, should the number of claims in a particular class begin to rise.

Your Disability Income Insurance Concerns:

* Occupation: The dangers of your job are a factor companies weigh to see the chances of you getting injured.

* Compensation: How much are you looking for to cover your expenses, and is it less than 70% of your present gross salary?

* Medical History: Your current health and what medical history your family has, will also affect how the life disability income insurance carriers will see you.

Other factors that go into assessing your situation are your gender, age and province or state of residence.

You also have the option of riders. Residual and partial riders are available to you if your situation changes and you are returning to work in a different job and experience a loss of income. Or if you return to work as a part time employee, but in the same job.

Plan Disability Income Insurance For Potential Accidents Or Sickness

Although no one likes to talk about getting hurt or such, the benefits of a disability insurance policy greatly help during times of crisis. Investing in a policy helps strengthen your overall financial plan or at least puts a floor underneath it. Get together soon with an insurance broker and discuss how your personal situation can benefit from disability income insurance.

By: Ivon T. Hughes -

Sat, 08 November 2008
The Ins And Outs Of Public Liability Insurance
With the compensation culture increasing around the world, having public liability insurance is becoming more and more important. If you donâ€t have public liability insurance included in your current building insurance, then now is the time to look at getting better cover. Here is some advice about why you need public liability insurance, and what to look out for:

What is public liability insurance?

Public liability insurance is an insurance policy that protects you from claims that other people might make against you in the event of an accident. If someone damages their property or injures themselves in or around your property or business then public liability insurance will cover you for any compensation claims that might occur. Cover usually ranges from £250,000 up to £1 million.

What are you covered against?

Public liability insurance will insure you against accidents or loss that others might suffer in or around your home or business premises. You are covered against claims from trespassers, as well as injury that might occur to anyone from falling objects or people carrying out repairs. If an accident occurs on your property and someone claims against you, your insurance will help you pay any compensation.

Included in your contents insurance

Some contents or property insurance policies have in-built public liability insurance. You should check with your insurer whether this is the case, and what level of cover you have. Even if the insurance is included, you need to make sure that you are adequately covered for any accidents that might occur.

Premiums

The premiums that you pay depend on the level of coverage you want. If you are simply covered your home, then premiums are likely to be lower than if you are covering a business. However, premiums are relatively cheap for the level of cover that you are afforded, and it is therefore essential for anyone running a business. With compensation claims on the rise it is also a good idea for homeowners to have adequate public liability insurance.

Dangers of not having insurance

If you donâ€t have public liability insurance then you could end up with a massive compensation bill. If you are at fault or negligent and someone makes a claim against you, then you will have to pay the full level of compensation if uninsured. A claim might range from a few hundred pounds to a few million for more serious accidents. If you cannot pay the claim amount then you could lose your home and other possessions in order to pay for the claim.

Requirements

Some businesses are required to have public liability insurance, such as horse riding schools. Any type of business that has some obvious risk to the public will be required to have public liability insurance. Also, many businesses and customers will want proof that you have public liability insurance before they work with you, in case anything should happen and a claim is made.

Source:By Expert Author: Peter J Kenny



Tue, 25 November 2008
Insurance Claim? Your Insurance Company Wants To Keep Your Money - You Can Fight Back
It's called a float,. Money is collected from policyholders in the form of premiums. Your premiums are then invested, floated, by the insurance company for its own profit. But at what point is there a conflict between the profit motives of the insurance company and the welfare of its policyholders?

While insurance companies profess to maximize profits by investing your premium dollars, the process is flawed. Diverse market situations create a volatile environment for investments. The inherent risks of investment can cut heavily into the profitability of an insurance company. While companies cannot control the volatility of interest income, they can control the payout on claims.

Manipulation of claims payouts has become ingrained in the corporate insurance community with such success that routine claims handling cannot be distinguished from bottom-line claims handling. The effect is to create serious insurance claim problems for unsuspecting policyholders.

In order of success, companies can enhance their profitability by utilizing three general tactics.

Lowballing, or undervaluing your claim is the most profitable and the most common method used to manipulate claims payments.

Consider that this approach is utilized in virtually all insurance claims. Claims settlements are actually claims negotiations. Recognize that the process occurs on a very unlevel playing field.

(1) Assume that your claim is undervalued. (2) Conduct your own independent research regarding the value of your loss. (3) Recognize that you will need to fight to get past the "range" of value offered in your claim. Adjusters are taught to negotiate for less than a claim is worth. Management provides adjusters with authority ranges, and they are expected to begin their negotiations at the bottom of that range. If you question the lowest offer, the theory is that you will accept the next offer within the adjuster's range.

Wrongful claims denial is the second most profitable tactic.

Unscrupulous insurance companies recognize the enormous profitability potential of claim denials. If you do challenge the denial, they can respond with a lowball offer. If you do not challenge the denial, they have realized pure profit.

If your claim has been unjustly denied, you must resist. Understand that insurance companies are bound to find ways to pay claims, not to search for means to deny them.

(1) Insist on a written recitation of the policy provisions utilized as a basis for the denial. (2) Adhere to any appeal processes specified in your policy. (3) File a complaint with your state insurance regulator. While state agencies cannot force your company to pay your claim, the complaint can serve to indirectly hasten a successful conclusion. (4) Seriously consider a legal opinion.

Claims delays represent the third most profitable tactic used to separate you from your money.

Paramount in the delay tactic is the belief that by forcing you to wait for settlement of your claim, you will eventually give up. Giving up translates to less money for the claim payment and more money for the insurance company. While there are a multitude of common delay tactics, one of the most common methods stems from the company's attempt to impose on you, biased interpretations of your policy. To combat this, you must read and strive to understand your insurance policy. Approach your agent for clarification or conduct independent research.

Insurance companies have a responsibility to investigate all claims. The key is that the investigation must be reasonable and timely.

There are other actions you should take. (1) Communicate with your adjuster. Insist on a time frame for an update on your claim and follow up with the adjuster when the time is met. (2) Insist on a full account of the reasons for the delay. If an explanation is not provided, follow up in writing. (3) Offer to provide any additional data which would prove helpful to the positive resolution of your claim.

You are not entitled to receive more than you are owed - but your company is bound to treat you fairly and to return you to the condition you enjoyed prior to your loss. Anything less is unacceptable. The key to your success depends on your ability to arm yourself with knowledge of your rights, recognition of the tactics used against you, and your refusal to accept that the insurance company holds all the power.

By: Jane Pytel

Wed, 10 December 2008
Demystifying Insurance
Q: Why do people who are overweight pay more for life insurance than thin people?

A: While it is true that a few extra pounds don’t necessarily mean you’re unhealthy, for the most part being overweight does increase your risk of illness and death. Obesity definitely makes you riskier to insure. That risk shows up in the size of your premium.

Being 50 or 60 pounds overweight can increase your premium by 50% over what you would pay at a normal weight for the same policy, and that’s if you have no health problems. Add in any health issues such as cholesterol problems and your premium will likely be higher still. If you are having other problems as well, such as high blood pressure or pre-diabetes symptoms, you may find it difficult to get an affordable life insurance policy.

There is good news, though. If you lose the excess weight, you will often be able to shed problems such as high blood pressure along with it. Then when your weight and health are better, contact your insurance company for a reduction in premium. Don’t wait until you’ve lost all the weight, either. You can continue to request premium reductions as you work your way to a normal weight.

Source: Insurance Compared.com



Sat, 27 December 2008
The Insurance Claim Game
If you've never had to file an insurance claim, consider yourself lucky - in more ways than one. While it's terrific that you haven't suffered a loss significant enough to file a claim, you're also lucky not to have had to suffer through the insurance claim game.

How do you play the insurance claim game? Let's just say that there's more involved than tossing the dice, crossing Go and collecting $200. While the object of most games is to win, this game starts with a loss. It doesn't matter what the loss is; it could be a crunched car, burned down house, theft of valuables, water damaged carpets and cabinetry, a blown off roof, or any number of damages. Whatever the loss, that's the hand you're dealt.

Each different loss type has its own related hassles. This makes the game more challenging! Let's say that your house has been flooded thanks to a burst pipe in the walls. Not only do you have a loss, you have a major mess and the potential for further damage (such as mold growth if the home is not dried out within 72 hours). The clock is ticking. Isn't this fun?

But we're just getting started. You also have safety hazards to deal with, emergency repairs to make, insurance paperwork to file, water damage professionals to hire, and temporary lodging to find.

Now, your opponent takes a turn. Who's the other player in this game? Your insurance company and, yes, they are playing against you. At stake is potentially tens of thousands of dollars and this isn't Monopoly money we're talking about. This is real U.S. Treasury currency.

You've paid your premiums and you are entitled to a fair settlement. However, the insurance company is a business that must minimize losses in order to be profitable. This includes minimizing YOUR loss.

Insurance companies often have contracts with "preferred" vendors who have agreed to pre-determined rates in order to earn their business. One of the first moves any insurance company makes is to steer you to their preferred vendors.

Your turn. While using the insurance company's recommended contractor may be fine if you don't have a preference and are unsure of whom to call for repairs, you are under no obligation to follow their recommendation. Most states allow "customer choice," meaning you can pick your own contractor for repairs; in this case, a water damage restoration company.

Your opponent's turn. Your insurance company is on the offense and will send an adjuster to your home to estimate the damage. This adjuster is friendly and likeable. However, he is a company representative that needs to minimize losses. He may overlook those warped baseboards or suggest a coat of paint rather than complete drywall removal. In addition, he won't necessarily prompt you to list all damaged personal belongings.

Your turn. Because your opponent is on the offense, you must put up a strong defense. Start by having either your contractor or a public insurance adjuster (an insurance adjuster that represents you) present when the adjuster arrives. By having a professional on your side, less obvious damage won't get overlooked or underestimated. In addition, have a complete inventory on hand documenting ALL damaged items, big and small. This ensures that nothing is overlooked.

The game continues with your opponent throwing mountains of paperwork your way, claim denials, low-ball settlement offers, unnecessary delays, and other tricks from their play book. If you play your cards right, you'll work out a fair settlement offer, hire a reputable contractor for repairs, replace your damaged items, and restore your home to its previous condition.

If you must play the insurance claim game, remember that your insurance company has a huge home field advantage because the company plays the insurance claim game day in, day out. You only play it a few times in your lifetime - if you're lucky.

Written by:Mark Decherd

Thu, 22 January 2009
Public Liability Insurance
What the insurance covers

This type of insurance covers any awards given to a member of the public because of an injury or damage to their property caused by you or your business. It also covers any related legal fees, costs and expenses. Premiums depend on the type of business you run, your turnover and the number of employees you have.

How much cover should you take out?

Most businesses have cover between $5 million and $20 million, but we recommend that the minimum cover should be set at $10 million as claims for injuries can take many years to settle.

Talk to a professional

There are many conditions and exclusions that can be applied to public liability policies. It is therefore important that you discuss with your insurance broker any that are applicable to your policy.

Products' Liability

If you supply a product and something goes wrong with it, claimants are likely to try to claim from you first, even if you did not manufacture the product. The nature of risk ie. the likelihood of a claim and the premium, are affected by who the product is sold to, how and where it is used and any warnings or labels that are provided.

The products' liability insurance that you buy covers you against any compensation awarded as a result of damage or injury caused by your product.

Product liability covers you against unforeseen circumstances. If you simply make an inferior product, then you may not be able to make a claim and bad workmanship is not covered.

In order to reduce your premiums you should put in place quality control measures. This not only ensures lower premiums, but also reduces the risk of compensation claims and the loss of your reputation in the marketplace.

Source: www.liability.com.au



Tue, 17 March 2009
Disasters payouts push premiums
THE head of the world's most influential insurance market said commercial premiums were likely to rise over the next year as underwriters looked to replenish capital following one of the worst years for payouts linked to natural disasters...

The chief executive of Lloyd's of London, Richard Ward, said 2008 was emerging as one of the most expensive years for insurers, with payouts linked to natural disasters such as floods, cyclones and earthquakes across the world coming in at around $US45 billion ($A68.3 billion), double the previous year.

At the same time, insurers here and around the world have been hit with large writedowns on the value of their investment portfolios, which has further eroded capital.

Still, Mr Ward, who has headed the multibillion-dollar Lloyd's market for nearly three years, said an expected single-digit percentage rise in premiums was still a measured response to market shocks.

"In 2008, we've had the second worst year for natural catastrophe payouts that caused significant losses for the insurance market," he said.

"If you then combine that with the economic environment we find ourselves in, that will also lead to a hardening of the market."

Lloyd's writes about $1.2 billion of insurance premiums in Australia annually on behalf of syndicates. At the same time, some of the re-insurance arrangements held by key domestic insurers IAG and Suncorp Metway are backed by Lloyd's syndicates.

"To characterise (rate rises) as a single-digit rise is probably appropriate — we're not seeing a step change in rates, which is good," Mr Ward said.

Australian insurers have warned that premiums could rise by as much as 10 per cent across some categories of personal insurance, outstripping rises in commercial property and liability insurance.

With insurance losses linked to last month's devastating bushfires in Victoria estimated to exceed $1.12 billion, analysts have said this is likely to accelerate rate rises already in train.

"Clearly, when you have a natural disaster, the market will respond with an increase in rates," Mr Ward said.

While the global banking system has come close to paralysis after being weighed down with deep losses, Mr Ward noted that Lloyd's and other large insurers — other than US giant AIG — have been able to escape the worst of the downturn.

The key to this had been insurers keeping the focus on insurance.

"AIG's problems have been because it was involved in financial products, which is not insurance," he said.

SOURCE: Eric Johnston - The Age



Wed, 17 June 2009
Public Liability Insurance Australia
Public Liability Insurance covers your legal responsibility for loss or injury you might inflict inadvertently on a Third Party or to their property

Before you sign make sure to read the exclusions section in the Policy. Do it within the “cooling off” period so you can cancel the Public Liability Insurance policy if it does not suit your needs and you will then get a full refund.

IT practitioner's should be aware that most standard Public Liability policies do not cover data loss, which is typically an IT practitioners biggest exposure.

Tradespeople need specialist policies to cover their Public Liability Insurance requirements.

Trades people who have contracts at airports probably will not have cover for airside functions, unless you purchase the correct Public Liability Insurance policy.

Public Liability Insurance Frequently Asked Questions (FAQs)

Q: Will my policy cover me for Products Liability Insurance as well?

A: Normally - yes. Insurance brokers will not sell Public Liability Insurance without Products liability cover unless you are a property owner. You would be exposed if you did not have it.

Q: Why buy Public Liability Insurance?

A: It gives you peace of mind knowing that if a claim arises your policy will respond. In particular, your Public Liability Insurance policy will respond to bogus claims. Your insurer will defend your position, pay the litigation costs, and ultimately get a successful rejection of the claim, while you just get on with your business.

Source:www.insurancebrokermelbourne.com.au

Wed, 05 August 2009
Why you may need Public Liability Insurance?
Having Public Liability Insurance gives you peace of mind knowing that if a claim arises your policy will respond and protect you, your family and your assets.

In particular, your Public Liability Insurance policy will respond to bogus claims. Your insurer will defend your position, pay the litigation costs, and ultimately get a successful rejection of the claim, while you just get on with your business.

Fri, 12 March 2010
Need a quote for Pulic Liability Insurance?
You can apply right here. Free quotes available online





Tue, 22 June 2010
Public Liability Insurance- Free Quotes Online
Quotes for all Business types



Tue, 13 July 2010
Why is Public Liability Insurance so important?
Without a doubt, Public Liability Insurance is one of the most important safeguards a business can have. It is not only limited to the traditional business model. Here are a just few examples of how it is applied:

- Business owners: from the self-employed to the big corporations

- Tradespeople: plumbers, electricians, builders, bricklayers, etc

- Professionals: doctors, lawyers, therapists, accountants, etc

- Sporting Clubs: football, soccer, cricket, horse riding

- Events & Functions: weddings, parties, conferences, fetes, shows, etc

- Church & Social Groups

The list is endless.

What exactly is Public Liability & what does it cover?

In general terms it is an insurance policy which offers the insurer protection from people claiming compensation in the event of an accident or loss whether it is in or around their home or business. Thus if there was an accident on your property and someone were to lodge a compensation claim, then your public liability insurance policy will assist you with the payment of compensation. Likewise if one of your customers was hurt in your place of business, you would be covered financially. Public liability insurance may additionally offer the insurer protection against claims from trespassers as well as provide cover against injuries made by falling objects or people carrying out repairs. This type of cover definitely reduces tension and creates peace of mind.

In a similar light there is Professional Liability Insurance that covers all your professional liability and worries while practicing your profession effectively. In today’s world, the importance of public liability insurance has increased to a great extent as more and more companies and professionals are seeking solutions for a society that is littered with litigation. In many countries, it is impossible to practice without adequate public liability protection.



If you need an urgent Payday Loan or Cash Advance- Click on a banner below! Try both if you like.





Tip for the day: Your credit rating can be affected if bills are paid late or if you default on a loan. Often the best and quickest short term solution it to get a fast Payday Loan or Cash Advance. This will often help in an otherwise difficult situation.

BOOKMARK THIS WEBSITE
To add Public Liability Insurance to your favourites, simply click here.

|  home  |  news  | links  |