03rd June 2010
How Public Liability Insurance Cost is Calculated
A basic insurance policy can cost less than £100 a year including insurance premium tax. The cost of the premiums will depend on the type and nature of your business, your turnover and the number of employees.
does Public Liability Insurance Cost?
A basic insurance policy can cost less than
£100 a year including insurance premium tax. The cost of the premiums will
depend on the type and nature of your business, your turnover and the number of
employees. The number of areas you would
want to cover in your policy might also affect the cost of the premium.
Given below are some reasons when quoted
prices can increase:
- The higher levels of risk associated with your business, its
turnover and the number of employees
- Higher business turnover is a reason for greater premiums
- If your company has a large amount of employees, this too
increases cover costs
much of insurance cover will you need?
Public Liability Insurance Cost will also
depend on the amount of cover that you will require. For small businesses such
as plumbers, electricians, painters, carpenters etc. the limit is usually
between a minimum of £1million and £5million.
In some trades your customers or potential
customers will demand for proof of adequate public liability cover before
offering you the job or allowing you to work for them. Businesses in the
construction field make it a condition that you have a cover up to a specific
If your business takes you out to work in
places other than your own premises (off-site work) this policy needs to be
applied for this situation too, including on-site as well.
The public liability cover can also be
extended to include claims made for defective products or design. This is often
referred to as product liability insurance.
The ideal way to compare and decide on the
best Public Liability Insurance Cost is by calling for quotes from a number of
insurers. These insurers can either be online or offline agents. Calling for a
quote from an online agent is a simple exercise, where you only got to fill in
a form that is found on their website. This form will call for some basic
information of your business. Once this is complete, the quote will be sent to
your email address immediately. You can call for these quotes from a couple of
insurers within a few minutes. Once receipt of these quotes, you can study them
carefully and select a policy which offers you the best Public Liability
Always bear in mind that different
insurance agents charge different prices for different levels of cover. Thus
the reason to study the policy thoroughly before you place your signature on
questions that you can ask your insurer when buying a Public Liability
- The level of cover: It is important that
you compare your Public Liability Insurance Cost with the cover. The quote will
differ according to the slab of the cover.
- The excess: The amount you will have to
pay to make a claim.
- Exclusions: What specific areas are
prohibited or not allowed in the policy.
Abroad: Whether the policy is yet applicable if you
work outside the country of your residence.