- Public Liability (PL) Insurance protects a business and venue operator against liability for injury or death to its visitors and customers and for loss or damage to property.
- PL Insurance is taken out for venues from hotels and resorts to theme parks to tourist attractions to function centres to business premises. It is also taken out by activity providers and tour operators.
- Typical PL Insurance cover is for $5 million per person, and up to $20 million in total for all persons who claim because of an event.
- What is covered is the compensation claimed and the legal costs in defending claims by participants or visitors injured or killed.
- What is not covered is an unlawful activity, a known hazardous activity, or a reckless or deliberate act which causes damage or personal injury.
- An example is the Thunder River Rapids Ride at Dreamworld on which 4 people died when a raft flipped in October 2016. The victims and their families claimed compensation and settled a class action suit for $26 m. Dreamworld contributed $4 m, and PL Insurance paid $22 m.
- Dreamworld also paid a fine of $3.6 m for Work, Health and Safety breaches.
- Public Liability Insurance is a safety net, not a substitute, for Terms and Conditions and a Liability Waiver. Both are recommended.
