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.