Is It Possible To Find Cheap Public Liability Insurance?

Why would I need Public Liability insurance?

Accidents are a fact of life. As a business owner, however, they can be costly! If, for example, the food you serve at your cafe gives your patrons food poisoning or your luxury car repair shop accidentally damages somebody’s Ferrari, your insurance could kick in to cover your associated costs. These could include legal expenses, damages, or medical costs you’re liable to pay.

Public Liability insurance can cover the costs you would otherwise have to pay out of pocket in the event your business causes:

• Injury or death
• Damage to a third party’s property
• Loss of expected revenue due to negligence
• Emotional distress

Public Liability insurance will typically cover your legal fees if you need to go to court to defend your business against a claim.

What are the trade-offs between cheap and expensive Public Liability?

As with all insurance products, there’s a range of factors to consider when assessing Public Liability insurance, which means there’s no one-size-fits-all policy.

As a business owner trying to remain viable in the current economy, you’re likely looking to cut expenses where possible, including when it comes to your insurance premiums. But keep in mind that while cheaper Public Liability insurance will come with a lower premium, it will likely offer you a lower threshold of cover or more limited coverage in return.

You should consider your business’ risk profile to decide what level of cover you need.

In addition, these factors will affect how much you pay:

• What level of cover do you need?
• What kind of risks are you exposed to, and how often?
• What exclusions are you willing to accept?
• Do you require any additional coverage?

Public Liability insurance is a legal requirement for some sectors, but regardless of whether this applies to you, you should consider the risks you’re exposed to in your everyday activities to decide whether it is a good fit for your business.

No matter what level of coverage you choose, thoroughly read the policy wording before you sign on the dotted line.

Helpful Tip

When you compare quotes from multiple insurers for Public Liability insurance, you’re likely to find more competitive pricing options. Different insurers may have different pricing depending on the industry and the risks they offer to cover in the policy. Insurance is not one size fits all, so comparing policies can potentially work to your advantage.

Jane Mason

Head of Product, Channels & Risk at BizCover

How do I work out how much Public Liability cover I need?

Two things strike fear into the hearts of business owners: being underinsured and overpaying. The last thing you want if you need to make an insurance claim is to find out your insurance coverage won’t cover your costs. Conversely, you don’t want to pay so much in monthly premiums that you can barely afford to conduct business.

Getting the right amount of cover is crucial.

There are a few things to think about when it comes to deciding how much Public Liability cover you need. Consider but don’t limit yourself to the following:

• Do you work in an industry with specific risks?
• Is your business home-based, or do you operate from business premises?
• How often does your business come into contact with members of the public?

Taking the time to make a comprehensive list of the risks your business is exposed to is a great place to start.

While certain types of businesses are very low-risk, Public Liability insurance can give you peace of mind if you ever need to visit a client on-site or if your client visits your small business.

Do limited liability companies need Public Liability cover?

You may wonder whether you need Public Liability cover if you run a limited liability company. The most common company structure with limited liability in Australia is a proprietary limited company (Pty Ltd). If this is how you’ve registered your business, you and your shareholders won’t be liable for costs incurred by the company.

Even if this is the case, it’s important to assess if Public Liability cover is appropriate for you. If you’re uninsured and someone makes a claim against you, your company could end up insolvent due to the costs.

Can I reduce my Public Liability insurance premium?

Yes! There are a few things you can do if you want to minimise your insurance premium. Remember to assess these ideas against your business needs to help you decide which actions could work for your business

Higher excess
A higher excess usually means lower premiums. While you’ll have to fork out more if you need to make a claim, the savings on your monthly premium could be worth it.

Compare options for the best deal
One of the easiest ways you could save money on your premium is by comparing policies with iSelect.

Pay annually
Some insurance providers offer discounts to customers who pay their premiums annually and in advance. Check with your provider to see if this is an option for you.

Lower your risk
If you can, lowering the risks you’re exposed to can help you reduce the chance you need to make a claim. Not only will this save you the cost of your excess, but your insurer might reward you with lower premiums in the future if you haven’t made a claim.

What other factors can affect my premium?

While keeping your premiums down with the tips listed above is possible, some factors are outside your control. These include:

• Size of your business: The bigger your business and the more employees you have, the more you may have to pay for your policy.
• Business and industry type: If your business has a lot of public foot traffic, such as a café or restaurant, then the risk of someone being injured in your workplace could be higher, and your premium will likely reflect this increased risk.
• Claim history: If you’ve had to make a public liability claim in the past, this could increase your risk and, therefore, the cost of your premiums.
• Location: If your business is located in an area that is deemed to be a higher-risk area, this could affect the cost of your public liability insurance.

Where can I find cheap Public Liability insurance?

A simple way to find cheap Public Liability insurance is by comparing policies with iSelect. We’ve partnered with BizCover to help you easily compare options from a range of business insurance providers.