Comparing all types of insurance is important for a business, but in this guide we will be looking specifically at public liability cover.
The Basic Cover
At a basic level most public liability policies are very similar in terms of the coverage they offer.
A public liability policy will cover you for property damage or personal injury to other’s resulting from your negligence. Whichever policy you choose, this is the foundation of the cover.
This is where it starts to get a little more interesting, especially if your business activities are a little outside of the norm.
Each insurance company will be slightly different in the ways that their policies are worded. For example each insurance company has a standard policy for electricians, but some may cover solar installs whilst others will not.
It’s a similar story for handymen. Each insurance company has a standard policy for handymen, but some are restricted to domestic work only whilst others will also cover light commercial work.
It is vitally important the policy you choose doesn’t just cover your basic occupation, but also each of the specific duties that you undertake, especially if they are outside of the norm for your occupation.
You can compare these details yourself by reading the Product Disclosure Statement (PDS) and the policy wordings for each policy, however the safest option is to use an insurance broker who knows your industry.
If you do take out a policy which doesn’t cover some of the business activities that you undertake, you will most likely find yourself having a claim declined if the activity was not covered under the standard policy.
Whilst the basic coverage offered by most public liability policies is very similar, there are a number of extra options and benefits worth considering when you are comparing policies.
We don’t have the space to go into every single option in this guide, but we’ll take a look at some of the more popular options below:
Tax Audit Cover
Some policies include this as standard, whilst for others it is an extra cost option.
Tax audit insurance will cover a certain level of costs if you are audited by the Australian Taxation Office (ATO).
The insurance will not cover the cost of any penalties or tax that you owe, but it can cover accountant’s fees and other costs involved in complying with the audit.
Driving Risk Cover
If you run a business in Qld that involves driving customer owned vehicles, such as a mechanical workshop or panel beating business, this option can cover the cost of damage caused to these vehicles whilst they are in your car.
The standard level of cover for driving risk is $100,000 however this amount can be increased if required. In virtually all cases driving risk will be an additional cost option on your policy.
When comparing insurance policies, one of the most important factors for many Qld business owners will be the cost of the cover.
Of course it is important to find the policy which offers the most completive premiums, but it is also important to ensure that the policy is going to meet the needs of your business.
There’s no point paying premiums for a policy which isn’t going to cover you properly in the event of a claim, so by all means look for the best price, but make sure the cover is right for your business.
For more information on comparing public liability policies please speak with your broker. If you are located in Queensland and would like us to put you in touch with a local broker please contact us or complete our online quote form by clicking the button to the right.