There are a number of factors which affect the pricing of this form of insurance, and in this guide we’ll take a look at them.
A public liability insurance policy can cost a business in New South Wales anywhere from $300 for a very small and low-risk business, through to many thousands for a big business.
As with all forms of insurance, the cost of public liability is based primarily upon the chances of your business making a claim, and the likely size of that claim.
If the insurer believes that your business type has a low chance of making a claim, and that any claim would likely be fairly small, then they will charge you a relatively low premium each year.
If on the other hand the insurer believes that your business has a higher chance of claiming, or that the claim amount could be particularly high, then they will charge you a higher premium.
Now let’s take a look at the specific factors the insurers look at when pricing public liability cover.
Factors Affecting the Premium
There are three main factors which will affect the cost of insurance for a NSW business. These are as follows:
- Type of business (i.e. your business activities)
- Size of business (in terms of either staff or revenue numbers)
- The amount of cover required
There are other factors which will affect the pricing, but these are the big three which will have the largest impact on the cost.
Other factors can include the following:
- Working in hazardous locations (such as airports and mine sites)
- Prior claims and incident history
- Use of subcontractors and labour hire
- Working at heights
Again this list does not cover every factor, but there are more of the main things that an insurance broker will need to know below they can provide an accurate quote.
If your business conducts any activities which could be considered to be outside of the norm for your industry, you will need to let the insurance company know, and this could also impact upon the cost of the cover.
There are very few options available to businesses to vary their own insurance premium, but one option is to increase the excess on your policy.
By increasing your excess, which is the amount you must contribute to a claim, you can decrease the premium payable each year.
Whilst this will result in a premium saving, it will increase your costs in the event that you need to make a claim.
Getting a Quote
Whilst it’s important for a business owner to know what affects the pricing of their public liability insurance, the only way to get an accurate quote is to seek one from an insurer or insurance broker.
There are many insurance brokers located in Sydney and throughout NSW who can assist with quotes on public liability cover.
To request a quote on your insurance please click here to visit our online quote form and follow the prompts.
We can then put you in contact with a business insurance broker who understands the NSW market and can provide you with quotes and information on your insurance needs.