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How Much Does Public Liability Cost

Navigating Public Liability Insurance Costs in Australia: An Essential Guide with Ausure Insurance Brokers
In Australia, Public Liability insurance is a requirement for almost every business across every industry. Public Liability insurance offers crucial protection against third-party injury or property damage claims. Understanding what level of Public Liability Insurance you need and what may affect the cost of what is or is not covered allows business owners to make an educated decision that meets their budget and risk management strategy.

In this guide, we’ll explain the factors influencing public liability insurance premiums, explore the different limits of liability available, and discuss the importance of selecting the right coverage.

Factors Influencing Public Liability Insurance Premiums

Public liability insurance premiums are affected by various factors, each playing a role in determining the cost of the policy:

Business Size and Industry: The size and sector of the business will influence the insurance premiums. Larger organisations or those operating in high-risk industries, such as construction or hospitality, typically face higher premiums due to the increased risk of a liability claim.

Annual Turnover: Insurers often consider a business’s annual turnover when calculating premiums. Higher turnover businesses may lead to higher premiums, reflecting their potentially broader liability exposure.

Level of Coverage: The level of coverage, which is the result of the limit of liability chosen by you ($5m, $10 million, $20 million or $50 million), will have a direct impact on the premium. While higher coverage limits offer more protection and coverage, they will equal higher premiums.

Risk Profile: Insurers assess a business’s risk profile, considering factors like past claims history, safety standards, and the likelihood of future liability claims. Businesses that have a lower risk profile may be offered cheaper premiums.

Location: Geographic location holds sway over insurance premiums, with businesses situated in disaster-prone areas or areas with higher crime rates typically facing elevated premiums.

Claims History: A business’s claims history, including the frequency and severity of past claims, significantly influences insurance premiums. Businesses with a history of frequent or substantial claims may contend with higher premiums.

Different Limits of Liability Available
Public liability insurance policies offer different options of liability limits, spanning from $5 million to $50 million. The selected limit of liability defines the maximum amount an insurer will pay out for covered claims within the policy period. Business owners must consider their coverage needs and select a suitable limit of liability. An Ausure Insurance Broker will be able to assist with helping business owners choose the correct limit of liability by considering their business and risk exposures.

Effect of Coverage Limits on Premiums

The chosen limit of liability is the key factor influencing insurance premiums. Opting for higher coverage limits will lead to higher premiums due to the higher protection and coverage offered. However, a higher limit of liability will provide peace of mind and increased protection against potentially million-dollar liability claims. Business owners must consider their risk exposure, financial standings (the ability of the business to survive should it receive a million-dollar claim), and coverage requirements when making this decision.

Getting the right advice: Ausure Insurance Brokers
When trying to understand what level of Public Liability insurance is needed, an Ausure insurance broker can provide guidance to ensure you make the right decision for your business. Ausure insurance brokers are business insurance specialists and can assist you with your business insurance needs to ensure you have the right level of coverage and no potential risk exposures you may not have considered. Using an Ausure insurance broker means business owners can rest assured they have the right advice and are able to organise all their business insurance needs in one place. Ausure is able to provide comprehensive insurance solutions that protect your assets, reputation, and business.

Using Premium Funding to Pay in Monthly Instalments

Business owners battling cash flow constraints or trying to manage their insurance outlays may use a premium funding solution. Premium funding allows businesses to pay their insurance premiums via manageable monthly instalments, easing the financial strain of paying upfront.

A premium funding solution means that you are entering into a contract with a premium funding provider. The premium funder will pay the insurer the cost of the policy (essentially loaning you the money to pay for the insurance), and you will pay the funder back in instalments. It’s important to understand any additional costs or fees that may be applicable as a result of you choosing to premium fund your insurance, as these vary between providers.

Public liability insurance is one of the most important types of insurance a business can have to protects itself from the repercussions of liability claims. By selecting an appropriate limit of liability and getting the right advice from an Ausure insurance broker, business owners can have peace of mind knowing they have the right protection in place for their business.

 

Speak to an Ausure Insurance Broker today. Find your closest broker here, give us a call on 1300 587 225 or complete a quote request here.

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