Public liability insurance: Why your practice needs it
Running a medical practice means balancing patient care with the demands of running a business. Public liability cover is one protection you shouldn't overlook. Here’s what it does and why it matters.
What does public liability insurance do?
Public liability insurance protects your practice against third-party personal injury or property damage claims that aren’t related to the practice’s professional duties. It covers incidents involving patients, visitors, contractors, suppliers, or members of the public (third parties) while they're on your premises or interacting with your practice. This is different from your professional indemnity insurance.
Your practice medical indemnity policy can help protect your practice entity against claims of negligence, errors or omissions arising from the treatment of patients. Public liability cover applies to non-clinical incidents, for example, a patient slipping in your waiting room, someone tripping over equipment in a corridor or accidental loss or damage to a patient’s personal belongings while they’re temporary in your care.
Why it's important.
Public liability insurance provides protection against claims that arise from incidents outside your practice’s professional scope. These claims can have significant financial consequences. Even if you successfully defend a case, legal fees can run into tens of thousands of dollars. And if you lose, compensation for serious injuries can be substantial.
It’s not just about the financial cost. Defending a claim takes time away from seeing patients, it’s stressful and it can influence how people perceive your practice.
What you're covered for:
- Injuries on your premises
If a patient, visitor, contractor, or other member of the public is injured at your practice, public liability insurance covers any compensation you are legally required to pay for accepted claims. That includes slips and falls, accidents involving equipment, and injuries that occur during non-clinical activities. - Accidental damage to property
Sometimes things get damaged. A patient's personal belongings in your temporary care, equipment that breaks during your operations. - Legal costs
We handle the legal process so you can keep running your practice, which takes significant financial pressure off you. - Advertising claims
If you market your practice, the policy can cover unintentional advertising-related claims for example, allegations of using copyrighted material or making misleading statements. Deliberate or intentional acts are excluded. - Multiple locations
If you operate across several sites or entities, each insured location receives its own protection giving you broader cover across your practice.
How it fits with your other insurance
Consider adding optional public liability insurance to your Avant Practice Medical Indemnity Policy if you don’t hold an Avant Business Insurance policy including public liability, or public liability insurance with another provider. With a business insurance policy, you can also add business interruption insurance if you need to close temporarily, plus optional extras like theft cover, glass damage, machinery breakdown, and electronic equipment cover. Having it all with one insurer means no gaps and no doubling up. It also makes the admin much simpler.
Does your practice need it?
Public liability is an optional layer of protection for your practice. It protects your finances, your reputation, and keeps your practice running if something goes wrong. The cost is modest compared to the potential impact of a claim.
Your exposure increases if you have a high volume of people coming through, an older building, a complex layout, or if you run events. Even the most careful practice can't prevent every possible accident.
You spend your career looking after others. Your practice deserves the same protection.
What to think about
When you're looking at cover, consider:
- how much cover you need, based on your practice size, location, and risk profile
- what's excluded – understand what is and isn't covered
- your excess – what you'll pay if you make a claim, and how that affects your premium
- extra options – whether you need additional covers for things like advertising
- making claims – how you'd report an incident and what support you'd receive.
Find out more
Public liability insurance is available as an optional add-on to an Avant Practice Medical Indemnity Policy, giving you the option to manage your professional indemnity and public liability cover in one place. If you hold business insurance with another provider, it's worth checking whether public liability is already included before adding it elsewhere.
Disclaimer: Professional indemnity insurance products are issued by Avant Insurance Limited (ACN 003 707 471, AFSL 238765) (‘AIL’). The information provided by AIL is general advice only and has been prepared without taking into account your objectives, financial situation and needs. You should consider these, having regard to the appropriateness of the advice, and the relevant Product Disclosure Statement or policy wording (available at avant.org.au), before deciding to purchase or continue to hold these products. Practices need to consider other forms of insurance including directors’ and officers’ liability, public and products liability, property and business interruption insurance, and workers compensation.
Avant Insurance Limited (ACN 003 707 471, AFSL 238 765) arranges Avant Business Insurance as agent of the insurer Allianz Australia Insurance Limited (ACN 000 122 850, AFSL 234 708) and may receive a commission on each policy arranged.
The information in this article does not constitute legal, financial, medical or other professional advice and should not be relied upon as such. It is intended only to provide a summary and general overview on matters of interest and it is not intended to be comprehensive. Persons implementing any recommendations contained in this article must exercise their own independent skill or judgement and seek appropriate professional advice relevant to their own particular circumstances. Compliance with any recommendations will not in any way guarantee discharge of the duty of care owed to patients and others coming into contact with the health professional or practice. Avant and its related entities are not responsible to any person for any loss suffered in connection with the use of this information. Information is only current at the date initially published.