Public Liability insurance. It’s one of those fundamental covers that most SMEs are familiar with.
But did you know there are a few factors to consider when arranging appropriate cover for your business?
Not all Public Liability policies are the same and along with cost, there are other factors to consider. To make things a bit easier, we’ve created a guide of what you need to keep in mind when choosing your Public Liability policy.
1. Are all your business activities covered?
There are various Public Liability policies to suit different types of businesses. That’s why it is always important to check your policy wording to ensure it adequately covers your business activities.
It pays to read the fine print so always check the exclusions, policy conditions and endorsements, as your policy may not cover all your business activities. This could leave your business potentially at risk of being uninsured if a claim were to occur.
2. Have you got enough cover?
There are a few things to consider when arranging adequate coverage for your business. Factors like the nature of your business and appetite for risk will help determine what level of Public Liability cover your business may need.
For example, take a restaurant vs a home-based accountant, two very different professions and environments. A restaurant with staff, customers coming and going and not to mention deliveries for suppliers creates endless potential claim scenarios.
In comparison, an accountant who works from home, who may occasionally visit or have clients visit their premises, the level of risk for a claim is different to that of the restaurant.
It may be tempting to go with a lower premium to save on costs but the cheaper option may not represent a true saving if the policy does not provide your business the sufficient coverage it needs.
3. Am I required to have Public Liability insurance cover?
Each State and Territory has its own set of laws when it comes to legal requirements for holding Public Liability insurance. For some trade professions, it may be mandatory to have a policy in place before you can obtain a licence. It is always wise to check with your State’s relevant authority to know what is required.
Public Liability insurance is also requirement for many industry associations and professional memberships, which will also stipulate the minimum level of cover you will need to have.
If you work with contracts, you may also come across requirements to obtain Public Liability coverage. It is a common requirement for those that work on building sites and those working within gyms and fitness studios.
For those that are currently renting their business premises, your landlord may require you have a Public Liability insurance policy in place.
4. Take the time to compare quotes
There are many options when it comes to purchasing your Public Liability insurance and one thing to keep in mind is the cheapest option may not always be the most suitable for your business. Spend time understanding what is covered and the level of cover.
Understanding the nitty-gritty can save you in the long run, so don’t be afraid to ask your insurance agent what certain features and benefits are if you are unsure. At BizCover we want to make getting your insurance sorted as hassle-free as possible by providing multiple quotes from some of Australia’s leading insurers in minutes.
5. Managing your exposure to risks
Like most business owners, you take care to create a safe workplace environment but there is always the potential for an incident to occur. Take the time to make a regular check on how you reduce risks within your business. Creating a safe work environment not only gives you peace of mind but it can also impact on your premium pricing.
Some things to keep in mind:
- Ensuring there is a safety plan in place if an incident were to occur.
- Consider the installation of sprinkler systems, CCTV cameras, burglar alarms and deadlocks to improve the safety and security of your business if not already in place.
- Make sure your staff are correctly trained, especially when handling machinery and in reducing the chance of accidents occurring.
Want to know more?
At BizCover we’ve been helping small businesses with their insurances for over a decade. Whether it’s a question regarding your policy or if you want to make the switch, we’re here to help you through the process. Jump online or on the phone today to experience insurance made easy.
