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For most businesses public liability insurance is relatively easy to obtain, but if you’re doing anything outside or the norm you could find that things get a little trickier.

As with all forms of insurance, public liability is priced based on the risk that the insurer believes you pose to them. This becomes even more of an issue if they don’t have a good understanding of your risk.

If the insurer believes that your business activities present a higher-than-usual level of risk, or a level of risk that they don’t understand, there is a good chance that they won’t offer cover.

The good news is that there are plenty of specialist insurers and underwriters who are willing to help such businesses even after the mainstream insurers have said no.

What is a ‘Hard to Place Risk’?

The term ‘hard to place risk’ is insurance industry jargon for a business that is going to be difficult to obtain insurance for.

Whilst many businesses that fall into this category are undertaking activities which are well outside of the norm, many are just normal businesses that happen to do some work considered higher risk.

A common trigger that can change a business from being a standard risk to a ‘hard to place’ risk is the types of areas it undertakes work in. Some of the following work locations are ones to look out for:

• Mine sites
• Quarries
• Airports
• Railway stations
• Oil rigs

Whilst some of these may seem obvious, others, such as railway stations, are less obvious.

Other businesses considered to be a ‘hard to place’ risk are often those which do not fit into the standard business categories that the insurance companies use.

Although the major public liability insurance companies have vast amounts of data on many thousands of different business types, there are some businesses that just don’t fit the mould, and often these end up having to go through specialist underwriting agencies.

Duty of Disclosure

If your business falls into this category you will likely receive one of two possible outcomes from your insurance broker or company.

The first outcome is that the insurer will simply decline to offer any cover, and the second outcome is that they will offer cover, but at a higher price.

Following this outcome, some business owners are then tempted to approach a different insurance company or broker for cover, but without telling them the full story.

This could mean you end up paying less for your insurance, but it is definitely not a good idea!

By failing to tell the insurance company or broker everything that is relevant to your business you will be in breach of your duty of disclosure, which means your policy could be null and void.

Ultimately this means that any claim will not be paid, and therefore you might as well have not had insurance anyway.

As well as having your claim denied, which can be financially devastating in the event of a large claim, your business will also be unlikely to be issued a new policy from any other insurer in the future.

Use a Professional

If you are having difficulties getting public liability insurance for your business at a reasonable price, or even getting any cover at all, your best option is to speak with an insurance broker.

A good business insurance broker will be able to assess your business and use their knowledge and experience to get you the best possible outcome.

A good option can be to use a broker who specialises in your particular field or industry. To find a broker in your area you can use the Need a Broker service offered by the National Insurance Brokers Association (NIBA).

For more information on hard to place business cover please contact your insurance broker or use the services offered by NIBA which we have linked to above.

So you’ve decided to use a business insurance broker for the first time. Congratulations!

If you’ve already decided that an insurance broker is right for you then you probably don’t need to hear about their benefits again, but there is no doubt that using a good one can benefit your business.

Once you’ve decided that using a broker is the right option for your business, the next step is to choose a broker. In this guide we’ll look at some of the factors to consider.

All Brokers Are Different

At first it’s easy to think that all insurance brokers do much the same thing, but in fact there are many differences.

Some brokers only specialise in certain types of insurance, such as domestic or business, and many brokers have differing levels of knowledge, experience and qualifications.

With this in mind, you need to understand the important of choosing a broker who is right for you and your business rather than choosing the first one that comes along.

Factors to Consider

There are a number of factors to consider when choosing a business insurance broker, and below we have listed some of the most important factors.

Qualifications and Licensing

Here in Australia all insurance brokers and adviser must be suitably qualified and licensed before they can provide any insurance advice to clients.

At a minimum your insurance broker should have a certificate IV in insurance broking, and preferably they should be at diploma level. For larger corporate brokers ideally they should be degree qualified.

Some insurance brokerages will hold their own Australian Financial Services Licence (AFSL) which allows them to provide advice and deal in insurance products.

Many insurance brokerages do no hold their own AFSL, and instead operate under the authority of another licence holder.

Operating under the licence of a larger AFSL holder is becoming more and more common in Australia due to licensing and compliance costs, and brokerages operating in this way should not be considered inferior to those holding their own licence.

As this is likely your first foray into the world of insurance brokers, it will probably be a good idea to ask any prospective brokers about how they are licensed. You can also find more information about licensing on the ASIC website.

Knowledge and Experience

This is perhaps one of the most important factors to consider when choosing your first insurance broker.

You need to find a broker with a level of knowledge and experience that is adequate for your needs, but also one who is willing to work with a new business that has never used a broker before.

It is also important to consider the type of knowledge and experience that the broker has. Someone may have twenty years experience in domestic insurance, but that might not mean they know anything about public liability or other forms of business insurance.

Most brokers will be more than happy to tell you all about their experience and knowledge, and increasingly you can find this information easily on their company website.

Specialities

The specialist insurance broker has become more and more prevalent over that last decade.

Many brokers try to be all things to all people, but some brokers (and their clients) are seeing the benefits of specialising in specific areas.

It’s not uncommon for a broker to specialise in business insurance, but some brokers are drilling down further into specific industries. Common industries for specialisation include the medical and trades sectors.

If you are looking for a specialist broker the easiest method is to search Google for your industry + insurance broker. For example try searching for ‘medical insurance broker’ or ‘tradesman insurance broker’.

Using a specialist insurance broker won’t guarantee better service or advice, but in many cases a specialist will have a better understanding of your industry which should result in better outcomes for you and your business.

Other Factors

There are plenty of other factors to consider, and one of those is the simple question of whether or not you get along with the broker.

Depending on the type of business you run you may find yourself having a fairly close working relationship with your broker, so it’s important that you can work with them on an ongoing basis.

Whilst you don’t have to be best friends with your broker, you do need to feel comfortable with them, especially considering the amount of information that you will have to provide them with about your business.

Choosing a Broker

There’s no doubt that using a broker can lead to better insurance outcomes for your business, but it’s important to choose your first broker carefully to get the most out of the relationship.

No matter what type of business you run, there will always be a range of risks that need to be considered and managed.

Some risks can be eliminated entirely by adjusting your business practices, but there are many risks which are partially or completely out of our control.

For those risks which we cannot eliminate or control completely, the next step to consider is business insurance.

Types of Business Risk

There are various types of risk which must be considered by a business. Statistics show that new businesses are generally at greatest risk, but it is also important for established businesses not to become complacent about risk.

Some of the major risks faced by Australian small businesses are as follows:

Property Damage & Personal Injury

This category of risk can be split into two separate but equally important areas. The first is property damage and personal injury caused to your own business and staff, and the second is damage or injury to others caused by your business.

Damage or Injury to Your Own Business & Staff

This risk will vary depending on the type of business you run. If you are running an office based business the risk may be relatively low, but if you run a factory or trades business it could be one of your major risks.

Damage to your own property can be managed through property insurance. Whilst no policy can stop the damage of course, it can cover the costs of such damage to your business.

Damage or Injury Caused By Your Business

This is one of the most serious risks for any business. If your business is found to have acted negligently and caused property damage or personal injury to another person you could be up for serious costs.

Thankfully this risk can be covered by public liability insurance. This form of insurance will cover the costs of such a claim provided that it is covered by the policy wording.

Loss of a Key Person

Finding and keeping the right staff is one of the biggest challenges for any business. Whilst you may be able to keep them on board by offering a competitive salary package, you cannot control their health and ability to work.

If you have a key staff member who has a major impact on the revenue of your business, insuring against their loss or inability to work for a period of time is vitally important.

This risk can be managed through key person insurance, which can cover you business in the event of a key staff member’s inability to work due to injury, illness or death.

Managing Risk via Insurance

No form of insurance can stop a particular event from happening, but it can help to manage the financial consequences of such an event.

Of course it is better to prevent such events from happening through prudent business processes and procedures, but there are many risks which are simply outside of anyone’s control.

A qualified insurance broker or adviser will be able to work with you to assess your business and identify any risks which can be managed through insurance.

More Information

To be put in contract with a qualified insurance professional the first step is to contact us here at Public Liability Insurance Australia.

You can complete our online quote request if you already know what types of business insurance you require, or you can simply call or email our office with your questions.

Insurance is one of the most effective ways of managing risk within your business, and we are here to help you to protect yourself and your business in the most cost effective way.

There are plenty of tradesmen and other contractors working on mine sites around Australia, and many of them are required to hold insurance.

If you work as a subcontractor on a mine site, you will most likely need public liability insurance. You may also know by now that getting cover can be a little tricker than normal.

All of the major insurance companies in Australia consider mine sites to be high risk locations, and for this reason many of them exclude any work conducted on mine sites from their policies.

Thankfully there are some specialist insurers who will offer cover for mine workers, and here at Public Liability Insurance Australia we know who they are and have full access to them.

Insurance Requirements for Miners

The most commonly required form of insurance for subcontractors on mining sites is public liability.

As subcontractors, these workers are generally not covered by the insurance of the mine site or the company that is hiring their services.

In most cases subcontractors and self-employed workers will be require to hold public liability insurance when working on the mine site. The minimum amount of cover will generally be $5 million however this is subject to change.

Some workers on mine sites may also be required to hold income protection insurance. This is because subcontractors and other self-employed workers are generally not covered by sick leave or worker’s compensation.

For more information about your insurance requirements you should speak with the mine or contracting company that is hiring your services.

What is Public Liability Insurance?

As public liability insurance is a common requirement for workers on mine sites, it is important to know what it actually covers.

Primarily, public liability insurance is designed to protect you from the financial consequences of causing property damage or personal injury to other people through negligence.

On a mine site there is considerable potential for major property damage or serious personal injury. If your negligence results in damage to expensive machinery or serious injury to another person, the financial costs could be huge.

With the right public liability insurance in place you can enjoy the peace of mind knowing that you have cover in place for such events.

Getting Quotes and Cover

When seeking public liability quotes for anyone working in or around mining sites, it is vitally important to tell the insurance company or broker everything about the locations you work in.

If you don’t tell them about your mining work you will get your insurance for a much lower premium, however any claim relating to mining work will be declined and you could find yourself in trouble for breaching your duty of disclosure.

Here at Public Liability Insurance Australia we have access to a range of specialist insurance companies that will offer cover to tradesmen and other workers on mining sites.

Our network of insurance brokers and advisers have assisted many workers and small business owners involved in mining and they would love to assist you with your insurance needs.

To obtain a quote on your public liability and other forms of insurance please complete our online quote request or give us a call here at the office.

As a small business owner a major part of your role is to keep your company operating profitably.

There are various ways to do this, and in today’s uncertain economic times a common method is to find saving within the business. One of the areas that major savings can be made is insurance.

Insurance is important to small business, and arguably it is far more important for micro and small businesses than it is for larger businesses.

Saving money on your business insurance doesn’t mean cancelling your insurance or reducing your cover. Instead it means reviewing your insurance and ensuring your cover is right for your needs.

In this guide we will look at some of the popular methods that small businesses can use to save on their insurance.

Review Your Needs

Step one for reducing your business insurance costs should be to review your current needs and compare that with your current insurance coverage.

As the years pass by businesses can change in different ways. Perhaps you no longer need as much cover as you have? Perhaps you no longer undertake some of the higher risk activities that you did when you originally took out your insurance?

If your insurance needs have changed you may well find that a new insurance package can be put together that actually reduces your costs.

Of course in some cases your review may find that you actually need more insurance, but in the long run this will still save you money, as without the increased insurance you may have been left exposed in the event of a claim.

Some business owners may be in a position to assess their own insurance needs, but in many cases it is better to use the services of a qualified business insurance broker.

A business insurance broker will be able to assess your business needs as well as your current insurance package, and will then make recommendations on any changes which are required.

Shop Around

Once you have a better idea of your current insurance needs the next step is to shop around for the most competitive premium.

The competitiveness of the different insurance companies change as time goes by. Whilst your current insurance provider may have been the cheapest at the time, there is a good chance that someone else is now cheaper.

If your business needs have changed, you may find that another insurance company is now a better match for your business and can offer you a better deal.

Whilst finding a better deal on your insurance is important, it is also important to ensure that your cover is still adequate for your business needs rather than simple choosing the cheapest public liability insurance available.

You can shop around for new insurance quotes on your own, however many business owners use the services of insurance brokers.

Your insurance broker will be able to obtain quotes from multiple insurance companies, therefore saving you all the running around. They can also make recommendations on which companies are better to deal with.

If you don’t already have a broker, here at Public Liability Insurance Australia we can help to put you in touch with a qualified insurance adviser.

To obtain quotes on your public liability and other forms of business insurance please complete our online insurance quote form or give us a call.

Other Useful Tips

There are a number of other ways you can save on your business insurance.

If you are paying your insurance monthly you will most likely be paying extra. In some cases it can cost between 10% and 20% more to pay monthly, so if you can afford to pay annually it may be a better option.

For more information on saving on your business insurance needs please speak with your insurance broker or get in contact with us via our online contact form.

Over the years it has become possible to obtain quotes and take out cover on a range of insurance products online.

Initially it was the basic products such as home and car insurance, followed by more complex covers such as life insurance and income protection.

The next logical step was business insurance, and today there are a range of business insurance types which can be quoted and applied for online.

Whilst not all forms of business insurance are suited to the online world, public liability insurance is now available online for a growing number of business types.

Online Services Available

There are a range of services available when it comes to online public liability insurance, and not all providers are the same.

The most basic level when it comes to online services is the simple information website. These sites offer information on public liability and in many cases the ability to make an online enquiry.

The next level up allows you to submit a detailed online quote request for your insurance. The level of information required can vary, but generally the more information you provide, the more comprehensive quote you will receive.

Whilst these websites do not offer instant online quotes, they can generally provide you with a quote within a 24 to 48 hour period.

At the top of the tree are a small number of websites which offer instant online quotes for public liability insurance. Whilst not all business types can obtain an instant quote, many uncomplicated business types are catered for.

Some of the online services which offer instant quotes also give you the ability to take out your cover and receive your policy documents instantly online.

Is It Safe?

There are some very reputable players when it comes to online public liability insurance, so it’s fair to say that overall it should be considered safe. But as with everything online, you need to be careful.

Whilst some websites are run by licensed or authorised insurance brokers and advisers, there are also many which are operated by people outside of the industry simply to generate leads which they can sell.

Websites operated by or affiliated with licensed or authorised insurance professionals are generally the better option, as you know you are dealing with a business which has met certain requirements and is subject to the financial services laws in Australia.

Another consideration for business owners is whether or not they feel comfortable in taking out such an important form of insurance via the internet.

The laws surrounding legal liability are complex, and therefore public liability insurance also has to be considered as a complex form of cover.

Obtaining an instant quote and proceeding with cover online may seem convenient, however you will not have the assistance of a qualified insurance broker or adviser to guide you through the process, and if something goes wrong with a claim you could be left on your own.

Plenty of businesses do safely take out cover online, but you need to be aware of the risks when taking on the responsibility yourself.

Public Liability Insurance Australia

Here at Public Liability Insurance Australia we believe we have the right structure in place to ensure that business owners and operators can cover themselves in the most effective way.

We believe that it is important to speak with a qualified insurance adviser before you take out cover to ensure that you are getting the right cover for your needs.

We allow business owners to request a quote via our website, and we obtain sufficient information to ensure that our insurance experts can put together a detailed picture of your business and provide quotes accordingly.

Our partners are experts in their field when it comes to public liability insurance, and their qualified insurance brokers and advisers will be able to assist you with quotes and advice on your insurance needs.

One such partner of ours is Trade Risk. They are considered to be the experts when it comes to insurance for tradesmen, so all such quote requests are forwarded to them for completion.

This approach helps to ensure that when you request a quote from our website you are receiving expert advice from a qualified insurance professional who specialises in your industry.

If you would like to obtain a quote on cover for your business please complete our online public liability quote request or contact our office.

Many businesses choose to spread their insurance premiums across the year rather than paying a lump sum, and in many cases this is done via premium funding.

Premium funding is a way of financing your business insurance premiums over a period of time. Not all insurance companies offer monthly payments, and premium funding solves this problem.

Why Premium Funding?

Unlike the mainstream insurance companies such as Suncorp and NRMA, most business insurance providers do not offer pay by the month business insurance.

Rather than being forced to pay their premiums annually in a single lump sum, businesses have the option of spreading their insurance payments over a period of time by using premium funding.

There are various companies offering premium funding services in Australia, and in most cases your insurance broker will have a preferred supplier.

How Does It Work?

Premium funding basically involves borrowing the money for your premium and then repaying the amount over a fixed period of time no greater than twelve months.

When you use a premium funding service, the funding provider will pay the insurance premium on your behalf. If you cease making repayments the funding provider has the ability to cancel your insurance.

As with all forms of financing, there are fees and interest involved. Most premium funding companies charge an upfront credit fee of around $30 along with an annual interest rate.

The interest rates charged by the premium funding companies do vary, and generally the higher your premium amount the lower the interest rate will be.

Premium funding is available for a range of covers including public liability insurance and other forms of business cover. In some cases it is also available for personal insurance, however this is a less common use.

Advantages

The number one advantage of premium funding is that it allows you to spread your insurance costs across a longer period of time.

Instead of having large sums of money tied up in insurance premiums, you can be redirecting that money to other more productive areas of your business.

Premium funding is also very popular with new businesses and those which are sensitive to cashflow issues. Premium funding can allow you to obtain the insurance you need without taking a big bite out of your cashflow.

Disadvantages

It’s a fact that paying for your business insurance via premium funding will be more expensive. Generally you are looking at a small upfront fee as well as an ongoing interest rate.

Whilst paying monthly will be more expensive than paying upfront, many business owners find that the extra expense is worthwhile due to the cashflow benefits to their business.

More Information

If you are interested in paying your public liability or other business insurance types via premium funding, the best option is to speak with your insurance broker about a solution that will best suit you.

If your insurance broker or company does not allow monthly payments or premium funding, please contact us here at Public Liability Insurance Australia and we will put you in contact with an insurance broker or adviser who can assist you.

To obtain a quote on pay by the month business cover, please complete our public liability insurance online quote request form.

One of the most common questions that business owners ask is how much public liability insurance they need.

The answer to this question depends on a few different factors. In this guide we will take a look at some of those factors and how they could affect your needs.

How Much Cover Can I Get?

A public liability insurance policy will generally be available in amounts of $5, $10 and $20 million. Some insurers also offer cover of $15 million however this isn’t too common.

Whilst the cost of your public liability policy will increase if you need more cover, it does not increase proportionately with the amount of cover you need.

For example if you double you cover from $5 to $10 million, the premium will increase but it will not be double. The increase will generally be quite modest, which leads many business owners to take extra cover just to be safe.

How Much Cover Do I Need?

The amount of cover you need will often be decided upon by the other companies that you work with or for. In other cases the cover amount may be set by your licensing requirements.

If you are doing work for schools or government agencies often they will stipulate a minimum amount of $10 million for public liability.

If you are doing work in major shopping complexes or large commercial buildings you will often find that your contract stipulates a minimum of $10 or $20 million.

Some business types will have their minimum cover amount set by their state licensing authority. In most cases this is set at $5 million, which is the minimum amount of cover available anyway.

If the amount of public liability insurance you need has not been stipulated in any contracts or agreements, it is up to you to decide on the amount you need.

Many businesses in this case go with the minimum $5 million cover, but plenty also choose to bump it up to $10 million given that the premium doesn’t increase by a huge amount in most cases.

Generally speaking, if you are working in areas that are widely accessed by the public (such as shopping centres, railway stations and airports) you may need a higher amount of cover. The same goes for work which involves large infrastructure projects.

If you are working on smaller domestic and light commercial projects with limited public access you may be able to get away with less cover, but it’s still a good idea to speak with your insurance broker or adviser first before making any decisions.

I’m Still Unsure About My Needs

Getting your public liability insurance right is important, so if you are unsure about how much public liability insurance you need you should speak with a qualified insurance broker or adviser.

An insurance adviser will be able to assist you with deciding how much cover you should have along with quoting the public liability insurance cost for each different amount of cover.

For more information or to obtain quotes on your public liability insurance needs please contact us or complete our online quote request form.

Are you looking for quotes on your public liability insurance?

The cost of public liability cover can differ greatly from one insurance company to the next, so it is definitely worth checking and comparing quotes if you are considering taking out cover.

Generally there are four main events which will result in a business owner seeking quotes. The process will be quite similar regardless of your reasons, but they are still worth looking at individually.

Starting a New Business

When starting a new business there are plenty of things to do. Besides making sure you have a viable business plan and structure, you also need to ensure that you are protected financially.

Insurance is especially important for a new business due to its vulnerable state in the early days. Having a large insurance package may be unaffordable, but public liability is a must.

When looking for quotes for public liability insurance for a new business it is important to ensure that you get the right type of cover to suit all of the activities you plan to undertake.

It may be a good idea to seek advice from various public liability insurance brokersif you have never dealt with this type of cover before, as they will be able to give you professional advice and assistance.

Renewal of Existing Public Liability

The cost of public liability insurance does fluctuate from year to year and from insurer to insurer. Just because company A was cheapest last year does not mean they will be the cheapest this year.

Shopping around at renewal time is a great idea for any business looking to save a few dollars. It’s not uncommon to save a few hundred dollars just by shopping around, and for a larger company the savings can be even greater.

If you already have a good insurance broker or adviser they should be able to do the shopping around for you and obtain quotes for public liability insurance from various providers. If you choose not to use a broker you will have to do the running around yourself.

If you do decide to switch your public liability insurance to a different company it is vital to ensure you are still getting the same level of protection. Saving money by switching to an inferior policy may not be the best option.

Business Changes

Often a change in business structure or a change to the activities which your business undertakes can trigger the need to obtain new quotes for public liability insurance.

Many insurers have limitations and exclusions on the types of activities that your business undertakes. If your activities change, you may have to find a new insurance company.

When looking for public liability quotes after a change in business structure or business activities, it is important to ensure your overall level of protection remains the same.

Attitude Change

The final reason we will look at for seeking quotes on public liability cover is the simple change of mind or attitude.

Some business owners think that they don’t need insurance and can save some money each year by not taking out a policy.

This may be fine for a while, but often an incident in the business or in an associate’s business can trigger a sudden desire to get some protection in place.

The processing for seeking quotes in this case is very similar to if you were seeking public liability quotes for a brand new business. In many cases an insurance broker will be the best option for finding the right cover at the right price.

Public Liability Insurance Quotes

Obtaining quotes for public liability insurance is a relatively easy process for most small business types.

The traditional method is to have a face-to-face meeting with an insurance broker, but increasingly many small business owners are choosing to go online in search of suitable insurance cover.

Now you can obtain quotes and even buy public liability insurance online all from the comfort of your own home or office thanks to the internet.

Here at Public Liability Insurance Australia we can assist with quotes on public liability and other forms of business insurance. To obtain a quote simply complete our online quote request and we will get in contact with you.