Essential Tips for Reducing Public Liability Insurance Premiums

Most startup companies understand that certain insurance policies are a legal requirement. Thus, there is a tendency to ignore insurance covers that are not a statutory requirement. An excellent example of such a policy is public liability insurance. However, failure to take a public liability cover exposes your company to a myriad of risks. If your business interacts with the public daily, it is highly advisable to take up public liability insurance. Nonetheless, some business owners worry about the impact of premiums on overall expenses. This post highlights essential tips for reducing public liability insurance premiums.

Implement Sufficient Safety Measures

Too often, some business owners ignore implementing safety measures claiming it is a waste of money. Unfortunately, accidents do not always announce themselves. Therefore, you never know when an incident will occur. For instance, a loose screw on a stairway railing may seem harmless until it gives way and a customer falls to the ground floor. When an insurance company inspects your premises, they take note of the safety measures you have in place and use the information to calculate the risk levels in the facility. If you have sufficient safety measures in place, you will pay lower premiums on your public liability cover.

Consult the Right professionals

Do you need your roof fixed or leaking drainage repaired? The type of tradespersons you hire to take care of your facility determine your premiums on public liability insurance. For example, if there is a leak causing flooding and damage to neighbouring business premises and assets, your insurer will investigate the cause. If they find out that you previously hired an unqualified plumber to repair the leak and they did a shoddy job, your premiums will increase when renewing the insurance policy. Therefore, always hire professional, qualified and licensed tradespersons. It reduces the level of risk the public is exposed to and goes a long way in lowering your premiums.

Review Your Business Activities

Most business owners do not know that they can negotiate their premiums when renewing their public liability policy. The fact that you paid higher premiums the previous year does not mean that you should do so this year. Therefore, it is critical to review your business activities every year to determine whether your risk levels have dropped. For instance, if you operated a sit-in restaurant the past year but have transformed your operations to takeaway services, your public liability premiums should go down considerably. The reason is that your current business activities no longer expose the public to risks. Therefore, talk to your insurer after reviewing your business activities.  

Contact a company that offers public liability insurance for more information.