Through the years liability insurance generally has come through unscathed in terms of price increases. The contracting trades (with the possible exception of the higher risk sectors such as scaffolders/roofers and groundworkers insurance) have seen quite stable premiums despite the insurance industry having to act in a more compliant manner in terms of recording employers liability history centrally on the ELTO system. Yet in these times of economic uncertainty business need to take a close look at each and every expense including insurance to maximise value for their premiums.

So, how can businesses save on liability insurance? The over-riding golden rule is NOT to cut corners. This is a false economy and potentially lead to financial ruin and heartache.
The following points could save a few pennies:

1. Ensure you have a clean record. Accidents happen of course but take a look at your own Health and Safety, method statements and risk manangement practices as if there were no insurance in place. This applies whether you are a sole trader or a large contractor.
2. Be honest and open with your broker/insurer. They are far more likely to help and deliver competitive terms if they know all the facts.
3. Get accredited. Members of bodies or ISO accreditation bring discounts.
4. Go for a higher excess if this suits your business
5. Maximise any free temporary employee cover that is given on a policy
6. Minimise height or depth restrictions. Your policy may have an unlimited height limit which is great unless you never work over 10 metres.
7. If working within a multitude of trades, get advice on how to work to clarify the percentage of time working as each to maximise an efficient rate.
8. Ask if the policy earns ” no claims discounts” or “low claims rebates” for larger risks.
9. For larger contractors, look to go for a wageroll and turnover based product with a declaration a the end of the year.
10. For smaller contractors such as painters and decorators liability insurance or those who have quite fixed employee levels, look at both a per capita policy and wageroll/turnover to see which suits best.

It should be re-iterated again that it is imperative not to cut corners. Take a look at existing policy benefits too – some have a little bit of Professional Indemnity Insurance or contract works cover thrown in. Its always best to speak to an adviser to obtain the best terms.

It is worth asking about all of these to see if a cheap public liability policy can be acheived.