Know Risk is a community education program designed by the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) to improve our understanding of insurance and how it relates to managing the many risks we all face in life.
Personal Liability Insurance
What happens if someone hurts themselves at your house?
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Personal liability insurance is designed to cover compensation for which a home owner may be legally liable that arise from accidents to people while they are on the property. Such accidents may result in death or injury, or damage to personal items as a direct result of a property owner’s negligence or lack of care. Most policies also cover the legal liability while the owner is away from their home.
Personal liability cover is automatically included under building and contents home insurance.
The following situations are examples of where home owners may find themselves legally liable for injury or death because of their negligent actions:
- At a party at your house, a friend plugs a cassette recorder into a power point and receives an electric shock due to faulty electrical wiring
- A market research interviewer visits your household and is injured when falling over a bicycle left on the path
Personal liability insurance will cover the financial aspects of such events, including damages awarded and legal costs.
For more information, talk to your insurer or broker.