When you first set out to obtain a business liability insurance quote it can seem a very daunting task. You will be asked lots of questions that you may not be prepared for or even understand the relevance of.
So here is our guide to what you will need to know when you are setting out to obtain a Business Liability Insurance Quote. However before we go any further it must be stressed that Insurers require you to provide correct and accurate information as the details you supply will be the basis on which your business liability quote is given. If you proceed to arranging Insurance cover, this information will form the basis of your Insurance and you must remember that failure to provide the correct information when obtaining a business liability quote will prejudice your position in the event of a future claim.
So, what information will you need to provide when seeking a business liability quote?
The most basic essential (other than trading name, address and contact details) is the full description of the type of business for which you are seeking a business liability quote including a full description of work undertaken, services provided or goods supplied. This is very important as Insurance policies ONLY provide protection for the business description stated on the policy. So this information is not only used to calculate your premium but also as the basis of the Insurance.
The major information required to obtain a Business Liability Quote is much the same for most businesses and this will be the projected turnover for the next 12 Months and the TOTAL wageroll (including Directors remuneration) again for the coming 12 months. For many businesses, Insurers will need wageroll details of specific employee groups as not only does this assist Underwriters in assessing the risk but it can also ensure a more competitive premium, especially when some of the work undertaken is of a higher rated nature. The information of wageroll split most often required by Insurers to provide a Business Liability Insurance Quote is that between the group of employees engaged in Clerical, administrative and sales and then Manual workers.
Within the wageroll declared for manual workers the Insurer will ask you about the percentage of that wageroll applicable to manual work undertaken away from your premises. For businesses involved in the construction industry, in order to obtain a Business Liability Insurance Quote, the Insurer will often require estimated wageroll relating to various activities, such as work at certain heights or depths and type of property worked upon. The use of welding or cutting equipment on other peoples premises is another important rating factor.
Still on the Construction Industry, a common misconception is that if a contractor uses sub-contract labour then they do not need to be declared. Unfortunately they do as the law views in the same light as PAYE employees. So where a sub-contractor is supplying just their own labour then they must be treated as Employees for Insurance purposes. However if they supply materials and install them they are deemed to be “Bona Fide” sub-contractors with which you, the business owner has a different legal relationship. However you will need to supply estimates of your future payments for Bona “Fide Sub-Contractors when obtaining a quote for a Business Liability Insurance Quote.
As you can see, there is a great level of detail required to get an accurate and valid business liability insurance quote. Whether you are a small or large business If you deal with a good business insurance broker they will help you to get this information together and ensure you get the right cover for a competitive premium.