In our previous post on public liability for business, we talked about some of the reasons for having public liability: the types that get more media attention – the guy at the pub surfing on the meat raffle he won, the spilt (burning hot) coffee cups, the four legged chair that became three-legged.
Of course, these are all fine examples of public liability claims arising from bodily injury to third parties (maybe even a former customer). The other side of the coin is the property damage aspects whereby you become liable for the damage caused to property, whether in your care, custody or control or not.

For example, one of your staff members accidentally scratches your customer’s car whilst loading some goods, or a vendor left their laptop in your boardroom and you inadvertently split water all over it as you were tidying up!

Damage to property is generally defined as:

- physical damage or destruction of property
- the loss of use of property following physical damage or destruction

Which seems fairly straight forward except that property may be defined as:
- tangible property not in your possession
- the premises that your business occupies

Which is where it can get a little tricky…Yes, it would seem that accidentally scratching your customer’s car would be covered: it was property damage to tangible property not in your possession. And yes if Terry Tate accidentally rips a giant hole in your office wall that would seem to be covered.
But what about the laptop? Well it seems not..but wait, check those ‘special’ clauses under imaginative headings such as “additional benefits” or “endorsements” in the policy wording – you might find that this may be covered (to a certain extent). For example, conditions such as:

Damage to goods in your possession or control:

- physically damaged or destroyed
- limited to $50,000 during the period of insurance

Of course, if you’re unsure whether you’re covered or not you should seek assistance from a qualified insurance professional – such as an insurance broker or the insurance company itself – if they’ll take your calls!