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The cost of public liability insurance can vary from a few hundred dollars through to a few hundred thousand. How much you pay will depend on a number of factors.
In this guide we will take a look at some of those factors which affect the cost of your insurance.
Factors Affecting Public Liability Cost
There are two main factors which will affect your public liability insurance cost, along with a number of secondary factors which will also be considered by the insurance provider.
Two of the main factors affecting the cost of your insurance will be the type of business you run along with the size of your business.
These factors will help to establish your base premium, however there are some other factors which can still come into play. This includes any ‘out of the ordinary’ business activities that you may undertake.
The type of business activities which you undertake will often have the largest impact on the cost of your public liability insurance.
The insurance companies have large amounts of information, research and claims history on each different occupation and business type. This allows them to understand how much risk different business types pose.
A business type with a lower risk, such as a consultant working from home, will have a much lower premium than a tradesman working on job sites, and in turn they will have a lower premium than a manufacturing business.
The size of a business will also have an impact on the cost of your public liability insurance, as a company with more staff or higher revenue is generally considered to have a high chance of making a claim.
Some insurance companies measure the size of a business by staff numbers, some measure by annual turnover and some measure by a combination of the two.
Whilst the above two factors will be the most important for most standard business types, there are some businesses that will have their public liability insurance cost impacted upon by other areas.
For example any business working in locations considered to be high risk, such as airports, railway stations or mine sites, will find that their cost is considerably higher than for businesses not working in these locations.
If your business does undertake work in locations considered high risk, or undertakes activities which are outside of the norm, you will not only find that your cost is higher but also that many of the mainstream insurance companies will not be able to offer you cover.
The good news here is that there are specialist insurance companies out there who can offer cover to such businesses. We have access to many of these insurers through our broker network, so please get in contact with us if you need assistance in this area.
As with all forms of insurance, public liability is ultimately priced based on the perceived risk of your business.
If your business is regarded as a lower risk you will be charged lower premiums, and if your business is regarded as a higher risk you will be charged higher premiums.
How Much Does Public Liability Cost?
The cost of public liability insurance can vary hugely depending on the business that you run. The best way to find out this cost is to require a quote.
Here at www.publicliabilityinsurance.com.au we can arrange quotes through our network of insurance brokers and advisers.
They can assist you with calculating your public liability insurance cost along with recommending a suitable policy for your needs.
For more information or to find out the cost of your cover please complete our online quote request or contact our office.
Public liability insurance calculator
Wondering how to calculate the level of liability you require? In most cases you may have a contractual obligation to have certain limit as a minimum, but for most sole traders $5 million is more than enough. But think about what you are working on, is a building that would cost $7 million to rebuild if you accidentally burnt it to the ground, then maybe you should be looking at $10 million. Always think worst case scenario.