Public liability insurance is a must for any sized business. It offers protection if your company is considered to be responsible for a member of the public being injured or worse; or if their property is damaged. Given that’s all pretty standard, how do you choose between public liability insurance companies?
There can be significant differences between public liability insurance UK wide policies offered by different companies. So what three factors should you use to decide?
- What level of protection are you being offered?
Most offer a minimum level of £1m. This may seem quite high enough to cover almost any circumstances, but compensation and court cases can be very expensive. Also, be aware that if you enter into contracts with other businesses or government departments, for instance, they may insist on a much higher level.
- How much are the annual premiums?
Often, the cost of the premium will be calculated by the insurance company based on their judgement on the type of business you operate; the number of employees you have; and your previous claims history. This is why the price of premium may differ between liability insurance companies, and means you could get a better deal by shopping around.
- What level of excess are you required to pay if you need to make a claim?
Insurers use an excess on a policy in part to discourage smaller claims. It’s highly unlikely that any insurer will be prepared to meet the entire cost of any claim made against your business, so you should always expect there to be an excess. Where companies can vary is in the amount they offer as standard. Often, this is set at a level of £250. Sometimes, you may be able to negotiate lower premiums in return for a higher excess. But be careful: you must be sure your business could still meet that cost in the event of a claim.
So when choosing between public liability insurance companies, don’t make the mistake of thinking everything is standard. Check every detail carefully to ensure your policy is right for your business.