Getting public liability insurance can be a confusing and complicated task, especially if you’re looking to get covered for the first time. However, there are situations in which the future of your business can be reliant on good public liability insurance, so it is essential that you get the right cover. To help get you through the process, Cuuver.com have produced a public liability insurance checklist, to ensure you get the insurance that is best for your business.
Work out what you need covered
Policies can vary significantly between different insurers. Have a think about what activities your business undertakes and only consider policies that will cover all of them. Some policies have exclusions which they won’t pay out for, so you need to check that none of these exclusions include any of your business activities. If they do, you should consider ruling them out. It’s no good having a policy that doesn’t cover damages caused when working at heights if you run a scaffolding business.
Work out how much cover you need
The amount of insurance you will need to get varies widely depending on a number of circumstances. Insurers tend to offer cover for between £1 million to £10 million, but depending on your industry, it may be wise to consider getting even more than this. Clearly, this is a huge difference, but going for the lesser amount just because it’s cheaper could cost you big time in the long run. You need to think about the size of the compensation claims you might need to deal with.
If you operate in an area where large amounts of money change hands, or any industry where it is possible that you could face having to pay significant amounts of compensation, you should probably look at getting a higher amount of cover. Generally, the more your business is in contact with the public, the more likely you are to need to buy more insurance. In some industries, clients may not work with you if you don’t have a certain amount of insurance. For example, Government contractors often ask for you to have at least £5 million of public liability insurance.
There is a wide range of different insurers which offer public liability insurance. However, these all vary in terms of value for money and what they cover. Compare the different public liability insurance policies available from the UK’s leading insurance providers on Cuuver.com to help you pick the best insurance policy for your business.
Take the time to read and understand the different policies you find. Cheaper policies may seem more attractive, but that’s all the more reason to read exactly what cover they provide. You don’t want to get caught out by a poor, loophole-ridden policy when it matters most. Not being able to claim when you really need to could cripple your business’s finances, so don’t just skim read it so that you can tick it off your to-do list.
You need to ensure that you fully understand the terms of the policy so that you are aware of exactly what it will cover you for. This includes learning any jargon and reviewing any sections you don’t understand with the provider to clarify what everything means. It’s not going to be the most riveting way to spend your time, but it’s important that you do it.
Keep it updated
Once you’ve read your policy and bought your cover, it’s easy to just forget about it. While your insurance won’t quite need the care and attention of a newborn baby, you will have to make sure you keep your insurer updated whenever there is a change in your businesses’ circumstances. For example, hiring an increased number of staff, diversifying your business activities or a significant increase in your turnover are things that your insurer is going to want to know about.