How to Find Cheap Public Liability Insurance

Public liability insurance safeguards you in the event of a lawsuit due to death, bodily injury, or property damage to an employee or member of the public. It covers your business for compensatory damages, legal fees, and other expenses related to hospital treatment, coroner’s inquest, or other enquiries made as a result of the accident.

Typical liability insurance will cover you for claims up to £5 million, but can be less than or exceed that figure depending on the type of coverage you opt for. In fact, in certain situations, where a business is responsible for an event that cause damage to multiple individuals or causes significant property damage, the cost of entitlements to the aggrieved can be astronomical. However, while public liability insurance is pretty much mandatory for most businesses, finding an affordable one can difficult. Yet given how difficult it is to keep a new or small business afloat, the need to trim the cost of premiums is as critical as having the protection from a legal claim.

Know Your Risk Profile

The first step to getting cheap public liability insurance is to know what about your business constitutes the most risk. Naturally, the more dangerous your business operations, and the more faulty your equipment, the more likely an insurance company will raise your premium to account for the likelihood of a claim. Some of these areas will simply be an unavoidable aspect of the industry you chose.

However, not all business are the same, and some policies may raise your premium based on the industry you are in even if those risks do not apply to your particular operations. Moreover, there may be some risks you feel must absolutely be covered and those that may not be as applicable to your business. Finding a flexible plan that covers what you need and excludes things you feel are low risk can mitigate the cost of your premium. The following are eight items that an insurer might assess when calculating your premium:

  • Business Type – Your rate will be highly influenced by the claim history of your peers in the industry.
  • Ownership Type – Sole proprietorship, partnerships, or limited liability companies all have different levels of financial risk.
  • Ratio of Annual Sales to Inventory
  • Previous Claims History – Like car insurance, having claims in the past means a higher chance there will be claims in the future as it reflects a pattern of behaviour
  • Location – Commercial businesses may have more consumer traffic, while industrial locations have their own risks, particularly to employees
  • Subsidiary Organizations
  • Number of Employees – Includes clerical employees, partners, and directors
  • Starting Day of the Policy

Comparison Sites

Once you know the risk factors for calculating your premium, you can now begin to shop online to get a quote. Comparison sites are handy in that they perform much of the research for you, by finding and sorting available insurance products by price and customer rating. Once you sort by the cheapest products, it is then time to discern whether these products contain any deal-breaking exclusions.

Often times the cheapest products are cheap for a reason, whether it be the quality of a piece of steak or the comprehensiveness of your insurance. Gathering the list you made earlier, find out if these exclusions are things you can live with or present a danger to your business. Customer reviews and feedback is also a good method for weeding out those policies that have an inordinate amount of small print. If you still have questions, contact an insurance broker by visiting the British Insurance Brokers’ Association (BIBA) website.

If you opt to deal with an insurance agent, make sure the company is a member of the Association of British Insurers (ABI) to confirm you are receiving the proper advice.