The issue with Cheap Public Liability Insurance
When comparing public liability insurance policies, there is a trap that the insurers don't tell you when they offer you a cheap premium.
According to Insure 247's Broker Steve Sloan, it's what the Insurers don't tell you that may result in you carrying the risk when choosing a cheap policy.
"What they have left out"
"Not all public liability insurance policies are the same, insurers are obliged to tell you what they cover not what they have left out." he said "Insurers wording may include reduced cover option or simply no cover for common claim scenarios"
Care Custody & Control
Mr. Sloan explains "If you look after customers goods check that that your policy covers the amount you require, it's common for insurers to exclude this cover for couriers, transport companies, mechanics and even pay TV installers." Some insurers may describe this as goods in physical and legal control."
It's when a claim happens that you truly appreciate the value of a public liability policy, however, some insurers will have a high excess for different claim scenarios. Check prior to purchasing the policy, the excess, and compare other insurers to see if it is a common excess.
Cheap is not always best
When you get your public liability quote, you will be asked what level of cover you require. Cover generally offered is either $5, 10 or $20 million, according to Mr. Sloan $5 Million will normally be the cheapest, however, "It may only be a few hundred dollars more to get the maximum amount of cover", "$5 million may not be enough to satisfy a government or business tender process."
Before buying a policy Steve Sloan recommends using the check list below
PUBLIC LIABILITY CHECK LIST
IS IT BROADFORM LIABILITY (BOTH PUBLIC AND PRODUCT LIABILITY?)
ARE THERE ANY ENDORSEMENTS OR ALTERATIONS TO THE COVER?
WHAT ARE THE POLICY EXCLUSIONS?
WHAT IS THE EXCESS IN THE EVENT OF A CLAIM?
CHECK THE LEVEL OF COVER
If you are still unsure, talk to our team on 1300 046 787, to discuss your requirement.
PUBLIC AND PRODUCTS LIABILITY INSURANCE Compared
At Publicliabilitycomparison.com.au we quote broadform liability cover, this covers your business against claims for personal injury to another person (other than employees) or damage to property owned or controlled by someone else, or advertising liability. Property damage, personal injury or advertising liability which gives rise to legal liability must happen during the period of insurance and be caused by an occurrence in connection with your business activities, Broadform also cover product liability.
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