Types of Business Insurance: Public & Product Liability Insurance and Directors Insurance Cover

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Why the right mix matters

Every day you trade, you take on obligations—to clients, venues, councils, suppliers, and your own directors. The right program does three things:

1. keeps you compliant with contract and licensing requirements,
2. shields cash flow from large, unexpected losses, and
3. signals professionalism to bigger customers.

Earnest Insurance helps contractors and businesses across trades, retail, hospitality, professional services and light industry tailor cover that fits real-world risk—no fluff, no gaps.

Public & Product Liability Insurance (cornerstone cover)

What it does
Covers your legal liability if business activities cause injury to someone or damage to their property. When product liability is included, it also responds to injury or damage arising from a product you make, sell, install or distribute after it’s with the customer.

Common scenarios

• A visitor slips on a wet floor at your premises (public).
• A subcontractor drops a tool on a parked vehicle at a jobsite (public).
• A product you supplied causes a customer’s property to be damaged (product).

Who needs it
Any business that interacts with the public, works on third-party sites, or sells/supplies goods—especially contractors. Many contracts, councils, venues and principal contractors require proof of cover (certificate of currency) with limits like $5m, $10m or $20m.

Key decisions with a broker

• Limit of liability (contractual minimums vs real exposure).
• Territorial scope (Australia only? Worldwide excluding USA/Canada?).
• Activities & exclusions (hot works, height/depth, labour-hire, USA exports).
• Contract wording fit (indemnities, waivers of subrogation, principal-named).

Directors Insurance Cover (D&O / Management Liability)

What it does

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Protects directors and officers (and often the company) from claims alleging wrongful acts in running the business—e.g., breach of duty, misrepresentation, negligence in governance, employment practices claims, and regulatory inquiries. Often packaged as Management Liability, which can include:

• D&O Liability (for individuals and sometimes the entity)
• Employment Practices Liability (unfair dismissal, harassment, discrimination)
• Crime/Employee Dishonesty (fraudulent acts)
• Statutory Liability (fines/penalties where legally insurable)
• Tax Audit (professional fees to respond to audits)

Who needs it

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Companies with directors, officers or key managers—from growing SMEs to established firms. Even privately held businesses can see directors personally named in actions and investigations.

Key decisions with a broker

• Limits suited to revenue, headcount, customer profile and regulator touchpoints.
• Retroactive dates (cover for past management acts).
• Employment risk (fast hiring, restructures).
• Entity cover (does the policy extend to the company?).

Other types of business insurance to consider

Round out your program based on exposure:

• Property & Contents – buildings, fit-out, stock, tools and equipment.
• Business Interruption – replaces lost income and helps pay ongoing expenses after an insured property event.
• Commercial Motor & Fleet – vehicles, tools of trade, mobile plant.
• Professional Indemnity – if you provide advice/design (consultants, engineers, designers).
• Cyber Insurance – data breaches, ransomware, business email compromise, privacy liability, incident response costs.

A fast decision framework

1. Contract & compliance first
   • Customer/venue/council requirements (limits, endorsements, waivers).
2. Map your exposures
   • People on site? Work at height? Hot works? Exports? Food or chemicals? Directors signing big supply or finance agreements?
3. Balance limit vs premium
   • Start with contractual minimum, then stress-test against worst-case (severe injury, multi-tenancy property damage, employment disputes).
4. Close the gaps
   • If you advise/design, add Professional Indemnity. If you store data or take payments, add Cyber. Ensure Property/Tools and Business Interruption match your dependency on key assets.
5. Review on change
   • New contracts, growth, new products/markets or a change in directors should trigger a review.

What drives cost?

• Turnover/payroll and subbies usage
• Trade/activity and claims history
• Contract conditions (e.g., principal-imposed indemnities/waivers)
• Risk controls (SWMS, QA, incident procedures, cyber hygiene, HR policies)
• Chosen limits/excesses and program structure

A broker can often re-engineer limits, deductibles and program design (e.g., annual vs project policies) to keep premiums efficient while meeting contract needs.

Why choose Earnest Insurance

• Specialist placement – access to leading Australian insurers and niche underwriting agencies.
• Contract-ready documents – certificates aligned with council/venue/principal requirements.
• Claims advocacy – hands-on help when something goes wrong, not just at renewal.

Talk to us: T: 1300 402 412

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Ask for a quick review of your public & product liability insurance and directors insurance cover—we’ll map gaps, set limits, and provide quotes you can act on.

Quick FAQs

What are the main types of business insurance?
Liability (public & product), directors insurance cover (D&O/management liability), property/contents, business interruption, commercial motor, professional indemnity and cyber.

Public vs product liability—what’s the difference?

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Public responds to injury/property damage during your operations; product responds to injury or damage caused by a product after sale/installation.

Is directors insurance cover only for large companies?

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No. Private and growing SMEs face management, employment and regulatory exposures. D&O/Management Liability helps protect individuals and often the entity.

How much public liability cover do I need?

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Start with your contract/venue/council minimum (often $5m–$20m) and then assess worst-case exposure with a broker.

Disclaimer

This article provides general information only. It does not take into account your objectives, financial situation or needs and is not personal advice. Cover is always subject to each insurer’s policy wording, limits, exclusions and underwriting criteria. Read the PDS/TMD before deciding and seek personal advice for your situation.

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