Why Are Public Liability Premiums Increasing?

Are Public Liability Premiums Increasing?

According to Steve Sloan from Publicliabilitycomparison.com.au public liability premiums are increasing, and here’s why.

Insurers Hardening Market

“Insurers have been through a cycle of lower premiums that have reduced the returns to their shareholders. They are now in the position where they need to raise the premiums to improve the situations. Lower premiums coming to an end

Many public liability insurers that last year were offering lower premiums to get new policy holders are raising the premium on renewal

More excess in the event of a claim

Others are raising the standard excess in the event of claim, most have gone from the first $400 to $500, making claimants think twice about claiming in the event of small third party property losses.

Stamp Duties

Most states use insurance stamp duty to balance their budget. NSW in particular removed stamp duty only to reinstate in a move that left consumers and insurers confused and out of pocket, as NSW controls so much of the insurance pool, the administration costs of the changes were reflected in premiums across the country.

Insurers mergers and acquisitions

Some of the insurers that’s offer public liability insurance for tradies and small business have gone through some ownership and management changes. This includes brands like Calibre, Vero and Zurich.”

Steve Sloan recommends getting a comparison every time your policy is due for renewal. “Let the market cycles help you get the best premium, but check with your broker to make sure the policy wording and inclusions are the same or better than your existing cover.”

Public Liability 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

Public Liability Premiums Reduce

Public Liability Premiums Reduce in June and July

Public liability premiums reduced in June and July in Australia. According to Insure 247 "With the entry of new insurers and the hardening market, consumers look set to enjoy good premuims". Consumers are also benifiting of easier ways to compare the public liability insurers. Public Liability Comparison compared 4500 policies in June and July.

Public Liability Comparison compared 4500 policies in June and July.

Occupations enjoying better pricing

We have also seen a reduction in the insurance premiums for Carpenters, Plumbers and Painter, with some of the lowest premiums since 2008.

Public liability insurance clients in NSW have enjoyed the largest reductions in public liability for some occupations, so if you need a quote for new business or to compare your existing policy click compare and save by click here

NSW have enjoyed the largest reductions

Comparing more Occupations

Some of the public liability insurance policies we compared this month have included Bar and Restaurant, Cross Fit Training, Geo Engineer, Fencing Contractor, Removal Contractors  Self Storage Facility, Welder/Boilermakers and Waterproofing.

PUBLIC AND PRODUCTS LIABILITY INSURANCE COMPARED

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Public Liability Compared

Public Lability Premiums Reduce

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 the inaccurate or incomplete information. You should consider whether the advice is appropriate in light of your objectives, financial situation, and needs

5 reasons you need public liability insurance

5 reasons you need public liability insurance

It's estimated that of the 2,171,544 of actively trading businesses in Australia, 1 million of those are sole traders (not paying PAYG). These sole traders face risk while working with the public.

1.Accidents Happen

In Australia in 2016, there were 300-000 personal injury claims. A large number of these claims are covered by workers compensation insurance. Those workers compensation insurers will take legal action to recover the money paid.

If you or an employee of yours was responsible for the injury to a third party, your business would be held liable.

Personal injury claims are not restricted to medical needs it also covers ongoing needs, Loss of Earnings, Pain and Suffering In 2012–13, work-related injury and disease cost the Australian economy $61.8 billion, representing 4.1% of GDP.

 

2. Damage to Property is Expensive

You need public liability insurance because as Insure 247 explains the average public liability third-party claim for property damage in the last 12 month was $2800*, some as small as broken windows $550 and as large as $200,000 for water damage. On average it takes 42 days for public liability insurers to pay the claims.

3. Public Liability Insurance Makes Economic Sense

According to Insure 247, for small to medium business with  1 or 2 employees operating as a trades person or a professional risk, annual public liability insurance premiums should range between +$500-$1000, and then in the event of a claim, there will be an excess payable (Normally around $500).

4. It may be required to work

Government contracts, worksite health and safety and some licensing and industry regulator will require you to have a current public liability policy. Some may also need consumer protection insurance.

5. Consider your risk?

Do you carry stock owned by someone else? Does your business operate around the public? Could you afford a personal injury or property damage claim without insurance?

If you are still unsure, talk to our team on 1300 046 787, to discuss your requirement.

Public and Products Liability Insurance Quotes

PUBLIC AND PRODUCTS LIABILITY INSURANCE COMPARED

Compare Public Liability Insurance

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Public Liability 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 the inaccurate or incomplete information. You should consider whether the advice is appropriate in light of your objectives, financial situation, and needs

Sources: 8165.0 - Counts of Australian Businesses, *Insure 247 Claims Statistics May 2016 -April 2016, +Depended on Turnover and other underwriting criteria,

Who needs Public Liability Insurance

Compare to Save Money On Your Public Liability Policy

Compare And Save Money On Your Public Liability Policy

Here are five ways to compare amd save money on your public liability insurance policy.

 

Compare

Insurers will offer different levels of cover, wordings, exclusions and inclusions, they may also prefer a certain risk and occupations.

Some insurers will offer specials at different times of the year.

Also if you have been with an insurer for any length of time you should consider asking for a discount, especially if you haven't made any claims. (However unlike house insurance, they don't offer any claims bonuses)

Pay Annually

The convenience of paying your public liability insurance by the month will come at a cost with most funding companies and insurers charging extra for the convenience, normally in the form of fees and charges.

Annual payment for your insurance policy is also tax deductible

Choose the right level of cover

Steve Sloan a broker from Insure 247 explains that the right level of cover is the first place to start. "If your business is dealing with the general public 5 million dollars cover may be adequate, however, if it's business to business you may need to have $10 million dollars cover, if you deal with state, federal or local government they may require a minimum of $20 million. However, often the difference between 5 and 20 million dollars, may only be a few hundred dollars.

Reduce Risk

Where you show your insurer that you are reducing your risk it may reflect in the premiums, this may be something as simple as adhering to the Australian standards for certain business activities or if you are an importer and you can show that the manufacturing processes and procedures are in place this may also reflect on your premiums.

If you use subcontractors and you can also show that the subcontractors have their own insurance this may also have a benefit that reflects in your premium.

If you are still unsure, talk to our team on 1300 046 787, to discuss your requirement.

Public and Products Liability Insurance Quotes

PUBLIC AND PRODUCTS LIABILITY INSURANCE COMPARED

Compare Public Liability Insurance

1300-Insure

 

Public Liability 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 the inaccurate or incomplete information. You should consider whether the advice is appropriate in light of your objectives, financial situation, and needs