Do you need public liability insurance for your job, business or event?
Public liability insurance is one of the most common forms of insurance required by Australian businesses, and in many cases it is a mandatory form of cover.
Getting yourself or your business covered withpublic liability insurance is generally a straightforward process, and there are a number of ways in which you can get the cover.
In this guide we will look at some of the common methods used to get public liability insurance, as well as the pros and cons of each method.
Information Required
Before we look at the different methods used for getting public liability insurance, it is important to look at what information you’ll need in order to take out cover.
At the quote stage you will generally need provide information regarding the type of work that you and your business will be performing, along with your expected annual revenue and staff numbers.
When you are ready to proceed you will need to provide additional information such as your company name, ABN, start date for the policy and any other information requested by the public liability insurance companies.
Going Direct
In the past it was necessary to use an insurance broker in order to take out public liability, however many of the insurance companies now allow you apply for cover directly with them.
Pros
- Cuts out the middle-man (the insurance broker)
- Can save on premiums (as some brokers charge additional fees)
Cons
- Most direct insurance companies are no licensed to provide advice
- If comparing quotes, there is a lot of running around to do
- Can be a dangerous option if you do not know the policies well
Using a Broker
The most popular method for taking out public liability has traditionally been to use an insurance broker.
Whilst you can use a specialist public liability insurance broker, generally any insurance broker who works with business products should be able to assist you.
Pros
- Licensed to provide personal advice and recommendations
- Can obtain quotes from multiple insurance companies at once
- Can assist with choosing the right insurance company for your needs
- Provision of ongoing service, especially with regards to claims
Cons
- Cover can be more expensive if additional broker fees are charged
- Potential for a broker to provide biased advice due to commissions
Going Online
The internet is quickly become the first place that small business owners go to when considering public liability insurance.
There are a number of online services which allow you to get public liability insurance online with a few quick and secure forms.
Pros
- Can obtain quotes and take out cover at any time of day
- No need to visit an insurance broker or insurance agent
- Some sites have the ability to compare multiple quotes
Cons
- Personal support (i.e. phone support) can be lacking
- Personal advice is generally not available
- You could be on your own at claim time
What is the Best Option?
The best option for you and your business when it comes to how to get public liability insurance really depends on your own needs and preferences.
Many business owners prefer the personal service that only an insurance broker can provide. This is especially true of more complex businesses which may not fit within the standard insurance categories.
Using a website to find out your public liability insurance cost can be a great way to get the ball rolling, and just because you get a quote online doesn’t mean you have to proceed with the policy online.
There is no single method which is best for everyone. It could be a good idea to get some quotes online, then use the services of an insurance broker for any areas where you require assistance.