It may prove handy in the long run. Although, I’m sure you are asking yourself how much does Public Liability Insurance cost for your business. That’s understandable. You see, there are a few variables to consider regarding the cost. This blog should iron these out for you.
Public Liability cost mainly depend on the following:
First, you should consider the nature of your business. Some business occupations pose more risk than others. For example, Sally mentioned in the video above that an amusement centre would attract a much higher premium than a business consultant. Why? Well, an amusement centre is highly likely to involve many people. Therefore, the chances of damage/ loss or injury would increase.
Or, what if you own a coffee shop? There are many potential hazards like slippery floors, hot drinks and chairs spread across a relatively confined space. If the likelihood of a claim is higher, the cost would be more. Ultimately, the cost may differ based on the type of business you’re running.
Secondly, take into account how big your business is. Similarly to business occupation, the size of the business may reflect the cost. What if you are a national company comprising of high staff numbers? It’s natural to assume that the more staff you have, the more chance there is of injury/ damage or loss.
However, being a small business may not necessarily mean your costs may be lower. Take an example of an electrician. Even though it may just be one person on the job, their costs could still be high. Why? It’s to do with the type of job again. Generally, it’s potentially high risk when it comes to the public. Therefore, the cost may be higher.
As Sally states in the video, past claims are a rating factor in relation to costs. If your business has faced a claim before, then this could affect the future cost. Have you ever may been involved in a car crash that might’ve been your fault? If so, I apologise for reminding you. Perhaps your no claims discount had been affected. Or, the cost of your insurance may be higher than what it was before the accident. The same principle applies for Public Liability Insurance.
Keep note that your business occupation, business size and claims experience may not be the only factor that could tip the cost scales for Public Liability Insurance.
Additional factors are shown below:
To recap, the cost depends on your business size, occupation and previous claims. However, be sure to take into account further factors like location an the policy specifics. In addition, these factors may also play a part in how much Public Liability Insurance you may need. See our blog on how much Public Liability Insurance you should take out (cross link). That should be of use.
In conclusion, take a step back and look at the bigger picture of your business. The cost perspective should be clearer that way. However, be sure to speak to a professional for advice.
FD Beck has a free online insurance quoting tool tailored for contractors, consultants or freelance professionals. In fact, our online calculator has almost 150 professional occupations to choose from. FD Beck’s online PL insurance calculator offers limits options of $500,000, $1,000,000, $2,000,000 and $5,000,000. Better still, our online calculator includes other products such as PI and Cyber Insurance. That’s just to name a few.
For over 100 years, FD Beck has protected Australians. Rest assured, we have the knowledge and expertise to handle every aspect of your insurance needs.