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.
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.”
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