Cheap public liability insurance – The facts

by Guest

Everyone is always searching for a bargain and that includes insurance. Businesses require certain types of insurance, including public liability insurance, employers liability insurance and professional indemnity insurance and often turn to experts such as to find them the best deal. But does the best deal necessarily equal the cheapest deal?

The answer is sometimes yes and sometimes no, depending upon what the requirements of the business are. Employees’ liability insurance is a legal requirement and all businesses that employ staff must hold employer’s liability insurance, otherwise they are likely to be heavily fined. A large company with hundreds of staff is likely to incur more accidents than a smaller company and therefore cheap insurance may not necessarily be the best, whereas a company only employing one or two staff will have a much cheaper policy.

High risk businesses need to look carefully at their public liability insurance to ensure they are fully covered for all eventualities. A company, for example, that offers adventure holidays for the public, will require a higher level of public liability insurance than an office based company not dealing directly with the public. However, by completing a search, it may be possible to obtain the same level of cover with a different company at a decreased price. Check the wording of the proposed policy to ensure that it offers the level of cover required and take advice from experts if you are not sure.

For those companies who offer a service or advice, professional indemnity insurance is essential. It ensures cover if the company is sued for negligence or wrongful advice. Expensive does not necessarily mean better insurance; again, it is a matter of checking the wording on the policy and ensuring it matches all your needs at the necessary level. Completing a search and comparing the results will quickly show the differences within individual policies and it’s up to the company to decide which suits their business best.

As the economy continues to be squeezed, everyone is doing their best to cut costs where they can. Comparing companies can help provide cheap insurance but should never be used at the expense of adequate cover. The public are also feeling the pinch and one of the knock on effects is that they are more likely to put in an insurance claim for incidents occurring in public places. This has the unfortunate effect of raising the cost of public liability insurance across the board, but also makes it more essential that your company has adequate insurance in place. It can cost a lot more in the long run if the insurance company refuses to pay the claim due to inadequate coverage. Save where you can but not on the important aspects of the business.


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