How to Compare Public Liability Insurance Deals – 2021 Guide

Accidents happen all the time, and they are usually the result of human error. However, even if you were careful or you didn’t do anything, the law will consider you guilty. In those cases, you will have to pay a fee to a victim of the accident. Fortunately, there is a way to protect yourself and your company, and that type of “protection” comes in for liability insurance.

The liability insurance protects you and your business from any type of claim from damage, accident, damage to people and their property, etc. Of course, these are things you simply can’t control. Because of that, if you develop the right plan, liability insurance can cover all the costs and provide the victims with the rightful compensation. The good news is that your assets will remain intact.

Things become difficult when you need to decide on specific public liability insurance. There are many companies out there that offer the same or almost identical services. Because of that, in this article, we would like to teach you how to compare public liability insurance deals and pick the one that meets your expectations. Let’s get started!

First Step: Check Out the Premiums

By checking the premiums, you will manage to find out which type of liability insurance is the most affordable for you. We believe that you have in mind the maximal amount of money you are willing to spend on this type of insurance. That is the reason why this is a good method to narrow down all the options you have.

Of course, money should not be the only factor relevant for you. Too cheap liability insurance premiums may be a good sign as well. Maybe the company does not offer all the conditions you would like to get. However, if you see the premiums are too expensive, then there is no reason to continue the negotiating. Find the one that meets your requirements and expectations associated with the costs.

Source: chicagotribune.com

Second Step: Check Out the Ratings of the Company

Let’s imagine that you are buying shoes online. After you find the model you like, the next thing you will look for is social proof. In most cases, people would check out reviews of the previous customers that will confirm the decision they want to make is good.

Well, the exact same method is applicable for finding the best public liability insurance deal. You can check out the rating of the company at credit rating agency AM Best. These rates are reliable, and they come from the experienced people in this industry. The best ones will get A++, while the companies with poor credit will get D.

If public liability insurer has the best rates, there is a big chance you will manage to see that on the website of the company. Logically, they are proud of it, and they want to show the world that they are trustworthy. In case you don’t see the rates there, you can always check out AM Best credit rating agency.

Third Step: Analyze the Limits of the Policy

Well, there is one thing that all the company owners should know. Just like you have some type of spending limits, these companies also have some boundaries that they can’t cross. These boundaries come in two different forms – per occurrence limit and aggregate limit.

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Per occurrence limit refers to a maximal amount of money that the policy will cover each time when the incident occurs. On the other hand, the aggregate limit is the maximal amount of money companies will cover during one year. There is also the third type of limit (so-called sublimit) associated with particular incidents, but you won’t manage to find them always.

Let’s translate the explanation into numbers to make things clear. Let’s imagine the aggregate limit of the liability policy is 2 million dollars. In that case, the occurrence limit can, potentially, be $300 000, while the sublimit would be $20000 in the case when the client experienced the injury inside your company.

In most cases, these standards are the same, but that doesn’t mean that rule counts for everyone. It also depends on the type of industry you are working at, the type of tasks you accomplish inside your company, as well as how often the clients come into your office/company space.

Fourth Step: Check Out Whether the Policy Offers Commercial Property Coverage

This is the most common mistake that people make. They do not check out whether their public liability insurer offers property coverage for all the items that belong to third parties. If they are damaged inside your business premises, and the insurance does not offer this type of service, then that would mean you are not going to get the coverage.

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Of course, there are two options here. One option is to purchase public liability insurance and commercial property insurance separately. However, that would cost you a lot more. Instead of that, if you have both types of protection in one place, things will be much cheaper. This can be especially important for companies that struggle to organize their budget.

Fifth Step: Check Out the Price of Deductible

The last but not least step is to check out the fees you need to cover for the deductible. All insurers will require an annual deductible that you need to pay to get all the benefits from the insurance company. Of course, when the deductibles are higher, the premiums are often lower. However, that doesn’t mean they will always be more affordable That is the reason why you should chase the balance and ensure that both types of fees are proper.

Final Thought

Well, we explained all the steps you should make to properly compare public liability insurance deals. All the factors will directly influence your decision. However, doing that manually can be a time-consuming task. Because of that, if you don’t want to spend your time, there are always websites such as quoteradar.co.uk where you can compare different liability insurance deals with a couple of clicks. All the relevant data will be available to you for a second, so choosing that opportunity may be good.

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