What is the price and cost of suitable public liability insurance ?
How much the cost of public liability insurance for your business is depends on a number of key factors including:
- The nature and scope of your business
- Your business turnover and size
- Amount of insurance cover your business needs
How business scope can impact on how much your public liability costs
Generally the riskier the industry your business operates in, the higher the cost of your premium will be.
Smaller sized office based businesses such as graphic designers and bookkeepers which typically present fewer risks to persons and property may receive relatively low public liability premiums.
Business Size and Turnover.
However, as they say, SIZE does matter.
So, for example, a graphic design business with 30 people may most likely receive a larger public liability cost than a sole trader electrician, despite the electrician being in a far riskier industry.
How much public liability sum insured do I need ?
The third key factor that determines the price of public liability insurance is the amount of cover, or sum insured.
Typically public liability cover is available in either $5million, $10million and $20million.
The first two factors:
- The nature of the business, and the size of business, often determine the amount of cover ($) your business will need.
- The general rule of thumb is the greater the risks and/or the larger the business, the larger ($) sum insured.
Important considerations when determining what public liability sum to insure:
- Government departments, councils, schools, shopping centres, some building owners etc. are now often insisting on a minimum limit of $10,000,000 for Public Liability cover for Contractors and Sub-Contractor.
- Some councils and government departments are already insisting on a minimum $20,000,000 limit.
If your business activities include working in the above locations you will need a minimum of $10,000,000 million public liability cover or even $20,000,000.
How much is Public Liability Insurance for the self-employed ?
So, how much will public liability insurance cost you if you are self-employed ?
$5 million Public Liability Insurance cost for self –employed sole traders, consultants and contractors start from $380 annually or $35 per month for office based occupations.
$5 million Public Liability Insurance cost for some self-employed tradies , such as painters starts from around $480* or $45 per month.
Below are some indicative costs on how much public liability insurance is for various self-employed occupations .
There are typically many variables so if you want to find out exactly how much public liability insurance is to suitably cover your business activities it’s smart to talk to a SMART Business Insurance broker on 1300 542 573 or email us at firstname.lastname@example.org
How much will Public Liability Insurance cost my small business ?
As insurance policies are priced according to risk each different trade is “rated” as a unique occupation by the insurers and will attract its own cost. As such office or professional occupations are typically rated as less risky than trade occupations.
Whether you are a tradie or office based business if you think you are paying too much for public liability a friendly SMART business insurance broker help. Call us on 1300 542 573 or email email@example.com and we may be able to help you find affordable and suitable cover.
Please note: While cheap Public Liability Insurance can seem attractive on the surface it is important to ensure the policy covers you for the business activities you undertake and the insurance policy and company will respond as intended when there is a claim.
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