Protect Yourself with Business Liability Insurance

It is so important to avoid potential devastation caused by running a business without the correct liability insurance, regardless of the size of your operation.

Insurance News recently reported on a dispute arising after a home insurance policy holder running a skin tanning business from home, ended up in a difficult legal position after a customer, referred to as S in this article, was bitten by their dog when they arrived for their appointment.

The policy was held with the company Suncorp, who received a claim from the policy holders against their Home Insurance Liability cover, however, the claim was denied because their skin tanning customer was there purely connected to their business, which was excluded in their policy.

Escalating the denied claim to the AFCA (Australian Financial Complaints Authority), the policy holders’ dispute was again rejected after it was found that the ‘incident arose due to business activity excluded by the policy.’

The AFCA acknowledged the homeowners’ opinion that the injury was caused by an “unintended and unexpected attack” but said the dispute focused on whether the incident was connected to the business they were operating from their property.

“The question is, whether this incident can reasonably be accepted to be caused by, connected with or arising from the complainants’ business,” AFCA said.

The ruling said there was “no dispute” that the injured party attended the property for a paid skin tanning appointment, agreeing with the insurer’s assessment that the event arose due to the homeowners’ business operations.

“I am satisfied it is fair to accept that S’s attendance and presence at the insured property arose from or was connected to the business activities being conducted at the insured property,” AFCA said.

“I do not agree with the complainants’ position that S was not invited or instructed to enter the insured property.

“Rather, given she was booked in for an appointment at the insured property, it is reasonable to accept she was invited to attend the business premises (insured property) for her appointment.”

We asked a Petcover Spokesperson why the claim was declined by the home insurer in this report, they said; “The person that was attacked was there for business purposes that the dog owner was operating from home.

“If it had just been a visitor like a family member going to the home to see the owner and had been bitten, then the home insurance liability would probably have responded, but because it was business related, the claim was denied.

“We are finding there is a rise in businesses operating from home and what these business owners fail to realise is their home insurance policy will not cover any losses or negligence caused by their business operations.”

Petcover can help you get the liability cover you need by calling 1300 731 324 or by visiting