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How to Get Cheaper Public Liability Insurance
iSelect’s partnered with BizCover Pty Ltd to compare a range of small business insurers and policies in the market. Not all policies are available at all times or in all areas. Our advice on this website is general in nature and does not consider your situation or needs. Consider if any advice is appropriate for you before acting on it. Learn more.
Written by
Kervin Mathew
Edited by
Ellie Garran
Reviewed by
Adrian BennettWhy would I need public liability insurance?
Any business, from the Top End to Tassie, could be faced with an accident that may result in third-party injury, property damage, or emotional distress. In such cases, public liability insurance is a safeguard that could step in and help cover legal expenses, damages, or medical costs you’re liable to pay.
Keep in mind though, that public liability insurance only covers claims made by third parties – that is, suppliers, customers, or members of the public. It won’t typically cover employee injuries, contractual liability, damage to your own property, or professional negligence.
How do I find cheap public liability insurance?
Let’s get one thing out of the way. When it comes business insurance, ‘cheap and best’ might be a myth. In a lot of ways, your business is your baby. And you wouldn’t want to skimp on protecting it. Rather than just going for the cheapest public liability insurance option, it’s worth looking for an affordable policy that strikes a balance between coverage and value.
One of the easiest ways to find appropriate public liability insurance is by comparing policies. Through iSelect and BizCover, you get to choose from a range of competitively priced policies with flexible payment options and easy claims support. Too easy!
That said, how much you pay for your public liability insurance depends on a number of factors, including the type of business you operate, the level of associated risk, and how much cover you need.
How to compare business insurance with iSelect and BizCover
Get acquainted
Share a few details about your business and the type of insurance you’re looking for.
Understand your options
iSelect has partnered with BizCover to help you compare a range of business insurance policies from different insurers.
Get covered
Once you’ve found a policy you like, simply purchase online.
What are the trade-offs between cheap and expensive public liability insurance?
As a business owner you’re probably looking at reducing expenses where possible, including your insurance premiums.
A lower public liability insurance premium will likely offer you a lower threshold of cover or more limited coverage in return.
It’s worth considering the everyday risks your business can encounter and choosing a policy with suitable coverage, rather than just focusing on price.
And no matter the level of coverage you choose, thoroughly read the policy wording before you sign on the dotted line.
Helpful tip
You’re more likely to find competitive pricing options when you compare quotes from multiple insurers. In terms of public liability insurance, different insurers may have different pricings depending on the industry and the risks they cover. They may even specialise in a particular industry. Ultimately, insurance is not one-size-fits-all. So, comparing policies is the first step to take towards finding a public liability insurance policy that’s economical and also works for your business.
Adrian Bennett
General Manager for General Insurance
What factors can affect my public liability insurance premium?
Everything about your business – from how big it is to the industry it operates in to where it’s located, as well as any previous claims you’ve made – can factor into your public liability premium.
Business size
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.
How can I reduce my public liability insurance premium?
There are a few things you can do if you want to minimise insurance costs. Remember to assess these ideas against your business needs to help you decide which actions could work for your business.
Choose a higher excess
A higher excess usually means lower premiums. While you’ll have to fork out more if you need to make a claim, you might decide the savings on your monthly premium are worth it.
Compare options for a great deal
One of the easiest ways you can save money on your premium is by comparing policies. iSelect and BizCover can help you with that!
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 reduce the likelihood you’ll need to make a claim. Not only will this save you the cost of your excess, but also, if you manage to prevent the need to claim, your insurer might reward you with lower premiums in the future.
How do I work out how much public liability insurance cover I need?
Two things can strike fear into the hearts of business owners: overpaying and being underinsured.
If you need to make an insurance claim, the last thing you want is to find out your insurance 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.
So, getting the right amount of cover is crucial.
Fictional scenarios: How a florist and an events company chose public liability insurance
Jay runs a quaint little flower shop in suburban Toowoomba. They mostly do online deliveries and have the odd customer popping in for a last-minute bouquet. Given the low foot traffic and minimal public exposure, Jay chose a public liability insurance policy with a $5 million coverage limit – hopefully enough to cover them if someone trips over a pot of pansies.
On the other side of the country in Joondalup, Daisy owns an event management company. She’s busy ramping up for an event that’s likely pull in hundreds of attendees. Not one to take risks lightly, Daisy went for a comprehensive $20 million coverage limit to help ensure the curtains don’t fall on her business in case a claim props up.
There are a few things to think about when it comes to deciding how much public liability cover you need. Most people consider 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 interact 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. Even if your business has comparatively 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.
Frequently asked questions
Do limited liability companies need public liability cover?
In Australia, companies with limited liability are called proprietary limited companies (with ‘Pty Ltd’ after the business name). 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 whether 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.
Is public liability insurance tax deductible?
Yes, because the ATO considers public liability insurance a general business operating expense. You may also be able to claim your public liability insurance premium cost against the loss of any income.
That said, it’s best to consult with an accountant regarding public liability insurance premiums and tax deductibility.
Do I need public liability insurance as a sole trader?
While it’s not mandatory, it’s recommended that sole traders who regularly interact with the public get public liability insurance. In some cases, your industry might even deem it mandatory for you to get public liability insurance.
For example, an electrician may need a valid public liability insurance policy to be able to get their trade licence.
Get started on comparing business insurance today!
We’ve partnered with BizCover to help you compare from a range of business insurance policies.
This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording or Product Disclosure Statement (available on our website). Please consider whether the advice is suitable for you before proceeding with any purchase. Target Market Determination document is also available (as applicable).
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iSelect’s partnered with BizCover Pty Ltd (ABN 68 127 707 975: AFSL No.501769) to help you compare small business insurance policies. iSelect earns a commission from BizCover for every policy sold through the website or contact centre. iSelect and BizCover do not compare all providers in the market, or all policies offered by all providers. iSelect does not arrange policies from the providers we compare for you directly, but iSelect will refer you to our trusted partner, BizCover Pty Ltd who can.
Any advice provided on this website is of a general nature and does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of any information or general advice iSelect gives you, having regard to your personal situation, before acting on iSelect’s advice or purchasing any policy. You need to consider if the insurance policy is suitable for you. Please read the Financial Services Guide before buying any insurance policy.