You have decided to purchase public liability insurance for your business to protect it against third party claims arising from personal injury or property damage. But what about the public liability insurance cost? It is always better to know the approximate cost beforehand.
Calculating Insurance Cost The cost of public liability insurance varies considerably from one business to another. Each type of business may be required to pay a different premium based on its risks. The type of work you undertake has a major influence on the amount of premium that you need to pay. Apart from the type of work, the actual physical size of the project also determines your premium. For example, the premium paid by an electrician will be much higher compared to that of an accountant.
Another factor affecting the premium is the annual turnover or revenue of the company. Businesses making big revenue will need to pay a higher premium. Moreover, the cost of premium may also fluctuate if there are any drastic changes in the turnover of the company. Any changes should be notified to the insurer as the premium needs to be altered based on it. As the number of employees in your company increases, the premium will also rise so that they are adequately covered by the policy. You should also take into account other factors such as dollar value of your projects, whether you have subcontractors, and your work location. If you work in a high risk location such as mines, airports, and marine ports, your premium costs will also rise.
Getting Insurance The most common method of getting an estimate of your insurance is by contacting an insurance broker. An increasing number of businesses also rely on online quotation system to obtain competitive prices. It avoids the need for making appointments with brokers, and even saves your time. The best part is that you can receive special offers and even reduced premiums when you get online insurance cover. However, all businesses will not be able to purchase online cover. With larger businesses, the whole process of getting insurance will be more complex. They will definitely need the services of a qualified broker.
Reducing Insurance Cost You can reduce your premium cost in a number of ways. The first rule is cover only what you really need. For example, paying for $20 million cover is a waste for money for a small business. At the same time, make sure your business is not under-insured. Comparing quotes and shopping around for the best deal are other ways to reduce your public liability insurance cost.
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