Getting a business liability insurance quote can be a daunting process. You will be asked many questions about your business that you may not be prepared for or even have the answer to. So it’s best to do some preparation before you shop around to get the best deal.
What information will you need to provide when seeking a business liability insurance quote?
Correct & Accurate Information
Firstly 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. Failure to provide the correct information when obtaining a business liability quote will prejudice your position in the event of a future claim. So get your figures right.
Aside from your trading name, address and contact details you need to provide 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.
Projected turnover for next 12 months
The major information required to obtain a Business Liability Insurance Quote is much the same for most businesses and this will be the projected turnover for the next 12 Months.
Total wageroll for next 12 months
This includes Directors remuneration. For many businesses, Insurers will need to break down the wageroll details of each specific employee groups. For example employees engaged in Clerical, administrative and sales and then Manual workers. This not only assists 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 insurer will also ask you to detail what percentage of the manual work is undertaken away from your premises, within the wageroll declared for manual workers. For businesses involved in the construction industry more detail is usually required 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 people’s premises is another important rating factor.
Whilst we dwell on the Construction Industry, it is a common misconception that sub-contracted labour does not need to be declared by a contractor. This is not the case as the law views them 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 regardless of whether you are a large or small business. If you deal with a good business insurance broker they will help you to get the right information and ensure you get the best cover for a competitive premium.