source:SEIAIn an increasingly litigious society, public liability insurance has become very important for business, charities or event organisers. As the liabilities are potentially very large, even against one person let alone thousands of people visiting your premises, premiums for public liability insurance can be astronomical. Some industries even find it very difficult to find insurance at all like construction and nightclubs. Once you have managed to find insurance there are ways to reduce your cost from the original price quoted. Here we have discovered 3 tricks that will ensure you will not overspend on public liability insurance.
Immediately increase your excess
Often, public liability insurance is a requirement to work in your industry, for instance, banking, finance, money lending. In these industries premiums are high but the chances of ever needing to use your insurance are minimal. This is because of the number of risk mitigants that need to be put in place before you can even go into business.
One of these layers of protection will be to keep the excess fee in its entirety and in trust. This may seem like you are spending money, not saving money but you do not part with that excess until a claim is made and you will save so much money on your premiums that within a year a massive saving is made in total.
The chances you will ever need to use your insurance is slim. Increase your excess to the highest you can make it. In some cases by raising the excess can save you hundreds of thousands of dollars.
Apply through an association
Join an industry association or even your local chamber of commerce. These organizations have numerous member benefits that include reduced insurance premiums. This has occurred as national associations or bodies are able to negotiate wholesale rates with insurers due to the number of members they have.
This means you get the best rate available for public liability insurance. These rates can be up to 30% lower than making a retail application. A 30% reduction in premiums represents a massive saving in relation to public liability insurance and ultimately costs your business will have to bear.
Limit your client exposure
Public liability insurance covers you for any incident that occurs with a member of the public. By limiting the amount of exposure your business has to clients then your premiums will be greatly reduced.
The larger your office space, the larger your shop floor, the more staff you have, the more clients you have, the larger your premiums will be. You don’t want to go out of business but there are steps you can take. If you move to smaller premises, or decide to move your business online then you immediately limit your client risk. This will immediately drop your public liability insurance premiums.
Naturally, if you want to organize a music festival you will have to bear the associated cost of insuring the people who attend. If you can limit your client risk, in any way, you will save a lot of money.
