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How to save on your public liability insurance
All businesses are looking to reduce costs in the current economy, and one of the areas where a business can make major savings is insurance.
Insurance is a necessary expense for all business types, but there are ways to make great savings simply by shopping around and ensuring that you have the right cover for your needs.
In this guide we will run through some of the things you can do to help reduce your public liability insurance spending.
Having the Right Cover
When looking to save money on your public liability and other forms of insurance, the first step is to ensure you have the right cover in place for your needs.
Whilst all public liability insurance policies are very similar in their coverage, the costs can vary greatly depending on the information you provided when the policy was established.
It is important to check the business description on your policy to ensure you are not being charged additional premiums for work you aren’t actually performing.
For example a tradesman may have a policy which covers all types of work, when in fact they only ever undertake residential work. This means they may be paying extra for coverage of commercial and industrial work when they don’t have to.
Checking that your policy is right for you can not only save you money, but may also help you to identify other mistakes that could cause problems at claim time.
The best option for checking the suitability of your cover is to speak with an insurance broker or adviser who specialises in your industry. They will be able to assess your needs and check those against your current policy.
Shop Around
One of the most common ways for a business to save money on their public liability insurance costs is simply to shop around.
Each insurance company charges different premiums for their insurance policies, and the difference in premium can add up to hundreds or even thousands of dollars per year.
When shopping around it is important to compare the policies correctly to ensure the cover is still suitable for you. There is no point saving a few hundred dollars on a new policy if it’s not going to help you at claim time.
You can shop around yourself by contacting each insurance company separately for quotes, but most businesses prefer to use the services of an insurance broker who can obtain quotes from multiple insurers at ones.
A good insurance broker or adviser will not only be able to compare multiple quotes, but will also be able to compare the policies to ensure you are getting a policy which meets both your needs and budget.
Insure for the Right Amount
The final step we will look at is insuring your business for the right amount.
Public liability insurance is available in amounts of $5, $10 and $20 million, and the amount you should have will depend on your needs.
If you have a policy for $20 million, but your business only needs $5 million, then you could reduce your costs substantially just by reducing your coverage amount.
When reducing the amount you are insured for it is absolutely vital to ensure you still have enough cover to meet your needs. An insurance adviser should be able to assist you with this.
Get Started
If you’re looking to follow some of these steps in order to save on your public liability insurance you have two options. You can do the work yourself, or you can use an insurance adviser or broker.
There is nothing to stop you from doing all three of the steps we have discussed on your own, but it will take time and a good level of understanding of public liability insurance.
Whilst you can do it yourself, most experts would agree that using a qualified insurance professional is a better option due to the experience and knowledge they posses.
If you would like to save money on your public liability insurance we may be able to help you. Simply complete our online quote request and we will have an insurance adviser from our network contact you with quotes and further information.
If done properly, you should be able to reduce your public liability cost without reducing the quality of your coverage.