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The Importance of Comparing Public Liability Insurance Prices

Public Liability Insurance is an important safety net that business, organisations, and companies employ to protect themselves from the threat of litigation. After all, while you may take a number of preventative measures, it may be impossible to account for all scenarios and guarantee the complete safety of your employees and consumers on your property. A single incident on your campus could result in a lawsuit that cripples the finances of your company should you be found negligent. Typically businesses protect themselves against such claims by purchasing Public Liability Insurance.

However, this is not to imply that as a business, you should simply purchase the most expensive, most comprehensive plan available. Over time, the cost of insurance premiums can add up, and be severely detrimental to small businesses or a new entrepreneurship that requires a strict budget and circumspect spending.

Before Comparing Prices

The first step in comparing prices is determining what kind of insurance product you wish to shop for. For instance, opting for the cheapest rate means little if the policies are filled with exclusions for the areas in which you are most at risk. Make a list of the specific needs that are exclusive to your business. From that point, separate your list into things that are absolutely necessary, things that may be replaceable using your business finances, and coverage that is largely superfluous. Also make a note of the size of your business and the total amount of pounds you with to insure your business for.

The Importance of Comparing Prices

Once you have an idea of what type of coverage you need, you can begin utilising comparison sites and other online tools to sort by the best prices. Typically these sites research hundreds of eligible companies based on your information and needs and sort by prices, customer rating, or coverage type. Basically, it is best to start with the lowest prices first and work your way up.

Read the Small Print

The cheapest policy is generally the cheapest for a good reason. It is likely filled with exclusions and conditions that fail to cover the riskier elements of certain industries and equipment. As a result, an attractive rate may not cover you in the event of a lawsuit. At the same time, an exclusion may not be a bad thing if the risk does not apply to your particular situation.

As such, the best thing to do is to take the list you made earlier, and ensure all the things you absolutely need to have covered are insured. If so, then you can move on to things you would like to have insured, and weigh those exclusions against the cost of the insurance. Once you’ve made all the proper evaluations, see where you compromised then move on to the next available insurance product for a comparison.


Proper research and comparison isn’t just going to a website and sorting by price. As prices are never fixed in the insurance business, you might want to call the various companies and see where they are flexible. Certain exclusions may be waived or prices lowered if you demonstrate that your company has a lower risk factor than your peers. Remember to keep in mind the following factors when talking to a broker:

  • The Nature of Your Business – The insurance provider will want to know the jobs and function of every employer in your organisation to assess risk. If there is a particular aspect of the job that might be dangerous, consider offering a safety course or some special training and report that to the provider.
  • Records – Keeping detailed records of employee history as well as a proven record of safety and proper equipment maintenance will help convince your insurance provider that you are making every effort to prevent injury.
  • Other Information – The more information you provide your insurance broker, the more avenues they may discover with which to lower your premium. Consider sending records of total turnover as well as profit margins to show the viability of the business and how that capital is reinvested in the infrastructure and safety of your company.

Public liability insurance is a vital part of keeping your business safe from legal action, but it can come at the expense of your monthly finances. Comparing prices and knowing where you can cut back and mitigate risk will help your business stay protected and healthy.

Do I Need Business Insurance When Self-Employed?

Many self-employed individuals do not see the need for insurance. It constitutes an additional expense on an already tight budget, and the risk is minimal given the nature of their business. However, self-employed workers are still at risk for liability claims, and the result could be catastrophic considering the size of your assets.

Affordable Business Insurance

Fortunately you can still protect yourself from liability claims while enjoying a premium that reflects the relatively low level of risk. These options include but are not limited to:

• Join a Self-Employed Network – Rather than purchase an existing business insurance plan, many self-employed individuals have opted to unite and create their own policy which caters to their unique needs. Because the network is typically designed by and for sole proprietors, you can save on items offered in other packages that may be superfluous.

• Limit Your Coverage – Self-Employed individuals have very limited needs. Health insurance is the top priority, but in terms of your business, you may wish to consider disability and professional liability insurance.

• Research and Shop Around – Comparison sites offer a quick and easy way to do extensive research and comparisons without demanding a lot of your time.

Lastly, always remember to choose a policy that fits your business model. Errors and Omissions Insurance, for instance is designed to protect you from negligent advice, whereas other insurance policies work better for injuries and medical bills.

As A Sole Trader It Is Really Worth Me Getting Public Liability Insurance?

What is Public Liability Insurance?

Public liability insurance protects companies from lawsuits or claims that may occur while of the owner’s premises. These claims may arise from visitors, trespassers, sub-contractors and any other members of the public. It is within the organization’s best interest to protect themselves from untimely lawsuits that may cause the entire organization to declare bankruptcy.

Is this Insurance Required by Law?

The legal requirement of public liability insurance varies from state to state. Regardless of the requirement by law, most companies recognize the importance of the company to obtain insurance. Most organizations will include this type of insurance as a part of their insurance portfolio. One type of public liability insurance may include pollution insurance. This insurance ensures that expenses related to lawsuits involving environmental accidents.

What Types of Businesses Need Public Liability Insurance?

Public liability insurance is encouraged in all businesses. However, many small businesses do not obtain this type of insurance because of high premium costs. Companies may suffer out-of-pocket expenses that would be more than paying monthly premium costs. If the lawsuit is large enough, the company could completely shut down.

How Much Insurance Coverage is Required

Businesses must decide how much coverage is appropriate and what insurance is cost-effective. Companies with the greatest risk of lawsuits are shopping malls, clubs, theatres, sporting venues, hotels, markets and resorts. The risk of a lawsuit increases in places like night clubs and sporting venues where alcohol is present. Industries such as cleaning and security are considered high risk for lawsuits. These companies may be insured; however, the deductibles may be high. Some insurance companies may not cover these companies even with a high deductible.

When are Companies at Risk for Being Sued?

In most instances, insurance companies are only at risk of being sued by another party for negligent behaviour. Those that manufacture product are also at high risk. Public liability policies will provide money to pay to injured parties if they are on the job. The amount offered depends upon the policy amount. In some instances, this may be as high as $1 million or more. This amount will cover the cost of the customers or the clients.

What Type of Negligence May Occur?

Examples of claims that receive compensation for negligent behaviour vary significantly. For instance, the company may cover the cost of water damage to carpet, furniture or computer if a pipe bursts from negligence caused by their company. Alternatively, a company may cover the costs of a slip and fall down a flight of stairs at a sporting event. The steps may have been freshly mopped with no sign-age available. Any of these events could result in major lawsuits causing the company to lose millions.

What does Public Liability Insurance Cover?

Public liability insurance will pay the claimant in full with no out-of-pocket expenses for attorneys, research and other major expenses. This helps companies remain profitable and viable despite any settlement that result from the case.

Those members that work from home should consider public liability insurance to avoid losing the home to a major lawsuit. The insurance will cover the same legal fees, costs, expenses and other hospital treatments even in the home. Premiums will be calculated based upon the size of the home and the level of activity that occurs within the company. Nearly every establishment, even a hotel can benefit from this particular type of insurance. Many customers will require viewing a copy of this insurance before doing business with someone else.

There are all sorts of liability insurances that cover a variety of legal expenses related to negligence. Clients should shop around for the best rates in order to help them find the best deal. Public liability insurance is worth the expense. Think of the millions saved in legal fees and settlements should an accident due to negligence occur. Without this type protection, companies can lose all of their revenue through a single accident.