How do I get a monthly public liability insurance policy?
Steve Sloan, a broker with Insure 247 explains that a monthly public liability insurance policy is not a good option for the insurer or the insured;
“Most policies are created to protect a client during the insured period or if a claim arises from the insured activities within that period, if you take a short-term cover you may lose that protections.
Most insurers offer you an annual policy with cover for that annual period after the expiry date of the policy for unknown claims.
Business people who seek a short-term policy are generally seeking cover because they are being asked to get that cover by a head contractor as it is a condition of their insurance, or perhaps a government tender requires it. If you only take insurance for this period you run the risk of costly claim after you have finished the work and the head contractor can a most like will pursue your business for the debt. And let's be honest there are not many businesses that can afford a multi-million dollar claim.
let's be honest there are not many businesses that can afford a multi-million dollar claim
What is the alternative?
Most brokers and some direct insurers will, however, offer instalment options, sometimes through finance companies, these third parties generally make their money on the transaction by charging interest and dividing the total amount over monthly payments, this does not however mean you have a monthly policy.
If you cancel the policy, especially in the first few month, you can lose fees and charges that may result in a shortfall or for you to pay a larger some to cancel the policy. So before you enter into an instalment option check to see the cancellation fees, charges and total cost of the annual policy, but remember if you are planning to cancel you are doing so against the broker’s advice.
If you are still unsure, talk to our team on 1300 046 787, to discuss your requirement.
PUBLIC AND PRODUCTS LIABILITY INSURANCE COMPARED
Please note that any advice given has been provided without taking into account your objectives, financial situation or needs. It is also based on information we have obtained from you. You must ensure the information is accurate and complete. Otherwise, this advice may be based on inaccurate or incomplete information. You should consider whether the advice is appropriate in light of your objectives, financial situation, and needs