Claim Scenario 1
You bake a wedding cake for Bridezilla and inadvertently use an ingredient that is past it’s use by date. A number of guests at the wedding including the bride fall sick and are taken to hospital suffering food poisoning. You are sued for pain and suffering and are also hit with a massive legal bill to defend each claim. All up you owe $230,000. Thankfully you took out a Public & Products Liability policy which covers such claims.
Claim Scenario 2
Young Johnny’s birthday is coming up and Johnny gets what Johnny wants – an extravagant dinosaur cake with smoking nostrils. All is going well until Johnny suffers an allergic reaction and ends up in hospital. Turns out you accidentally contaminated the cake with traces of nuts from the job before. The judge awards against you and you not only have to cover your legal costs but Johnny’s parents legal costs as well. Thank goodness you took out a legal liability policy through Red Star Insurance Brokers which covers both the award and the legal costs.
View The Policy Wording
What Is A Master Policy?
A Master Policy is a single policy that is set up to cover a group of people that are typically members of a group (eg ACDN). Each individual is covered in the same way that they would be if they had taken out an individual policy, except for the fact that the Limit of Liability ($20m) is shared between all members. This means that the total amount of claims that can be paid by the policy is $20m across all members. If one member made a claim for $20m, the policy would be exhausted and no further claims could be made. Considering the limited number of claims lodged we consider it highly unlikely that the limit will be breached, and as such we consider that this policy is appropriate for our clients, particularly given the premium savings available. In the very unlikely event that the limit is reached, all clients will be contacted and a new policy cover arranged. If you would prefer to have your own individual policy, please let us know and we can change this back to what you had previously (additional costs apply).