For small businesses the amount charged for Public Liability Insurance is set purely on what kind of work you do. However, other factors that are sometimes taken into account are your claims history and any risk management procedures that you have in place. By thinking about risk management it is sometimes possible to reduce your premiums substantially. It is also important to check which Exclusions your policy has. It is important to be aware of these so that you know exactly what you are and what you are not covered for.
Insurance companies
operate by working out the total
amount they have to pay in claims
every year and then by charging
their policyholders enough to cover
the claims. However, insurance
companies realise that not all
businesses represent the same level
of risk and they therefore charge
differing amounts to reflect what
they estimate as the risk that your
company brings to the “risk pool”.