3 Ways Businesses Can Save Money on Public Liability Insurance

Although not a requirement by law, a public insurance policy is critical for any business that deals with members of the public. The reason is that you cannot rule out inherent risks the company is exposed to, and that includes claims against the business by members of the public. By getting covered with a public liability insurance policy, your business is protected against unforeseen risks and eventual claims. Ultimately, a public liability insurance policy acts as a financial buffer to your business. That said, companies have to make monthly premiums to their policy, and the exact amount is determined by the insurer based on various factors. Therefore, the figure can either be high or low. This article highlights tips for businesses to save on public liability insurance. 

Get your Deductibles Right

When approaching an insurer, it is essential to first read and scrutinise the policy thoroughly in as far as deductibles are concerned. See, you cannot avoid an insurance policy if you want to protect the business against financial problems. However, you can quickly negotiate the deductibles and the premiums you pay. Deductibles refer to the amount the business should pay before the insurance cover settles the rest of the claim. Ideally, the higher the deductible, the lower the premium. Since most companies don't have the ready cash to pay higher deductibles, it is a safe bet to find an insurance policy that strikes the right balance between the two. However, if you can pay higher deductibles, then you can rest assured that the monthly premiums will be low.  

Risk Reduction

The primary reason businesses have a public liability insurance policy is to protect them against claims resulting from accidents. Therefore, the lower the risk levels, the lower premiums the company will pay. Before you take an insurance policy, first examine your business premises or site for potential risk factors. For instance, constant leaks on the floor increase the chances of slippage and accidents. In such a scenario, you can reduce the risk of falling or slipping by repairing the leaking section. If the insurance broker conducts an assessment on your premises and concludes that the possibility of accident occurrence is low, then you will pay very little in terms of premiums. 

Conduct Strategic Investigations

When confronted with a claim, most businesses prefer to settle the matter quickly and quietly to avoid negative publicity. However, while your intentions may be understandable, you may end up paying a bogus claim. Strategic investigations are critical to ensuring you pay the claimant only what is due. Start by investigating the injury claim immediately, and make sure you keep any material evidence you collect — use smartphone technology to your advantage. The thoroughness of your investigations will determine how much you pay the claimant from your public liability insurance policy.