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Public liability insurance exists to provide compensation to members of the public who are injured on a business' premises. Premiums for charities, event organisers and other businesses can be extremely high dependent on the amount of client risk involved. This is because liabilities against injured members of the public can often be very large, and if a large group of people are hurt on your premises, the costs can be sky-high. This is why public liability insurance is so crucial and in fact a requirement for some businesses. This is also the reason that premiums for this type of insurance can potentially be through the ceiling.

Flower Shop

One way in which you can save money is to immediately increase your excess if in a low-risk industry. Excess in simple terms is the amount you will pay out of your own pocket if a claim is made. If you work in an industry where there is only a minute amount of risk to those on your premises, then substantially increasing your excess can save you a lot of cash. For example, banking is an industry where public liability insurance is a requirement, even though it is very unlikely you will ever have need for it.

By increasing your excess in a banking business, your premiums will decrease and over a year savings could be big. If you keep the full excess fee in trust then you will hold on to that excess until a claim is made. If you work in a low-risk industry and you do not make a claim in several years, then the money you would have saved on your premiums would be immense! Increase your excess to its limit if there is little chance that you will make a claim and you will save yourself a great amount of money.

Another good money-saving scheme is to limit your client exposure. If you can restrict the amount of time that members of the public are within your premises, then there is less risk of an incident occurring and thus your premiums should be lower. If you decrease the size of your shop floor so that there are less clients inside then the smaller premises would mean a lower risk of public injury. Alternatively, moving your business online can make your premiums nosedive. Of course, if you run a string of nightclubs or you’re organizing a music festival, it is going to be near enough impossible for you to limit client exposure without disrupting your business’s operations. However, if you can find alternatives to having large groups of the public on your premises, you will find that you can save plenty on your insurance payments.

Ultimately, the way to save money in this game is to keep public risk low. If you can limit client exposure then you will save money, and if you already work in a low-risk industry, then increasing your excess will make your premiums much smaller. All public liability insurers fear public risk, so if you make sure everybody on your site is safe, then you and your insurance provider can both relax.


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