When determining the cost of Public Liability insurance for businesses in the hospitality and restaurant industry, various factors are considered as no two businesses are identical. These factors include the size and location of the business, the types of food and drinks served, and the number of employees. It’s important to understand how these factors impact the calculation of Public Liability insurance premiums.
What are some of the elements that influence the cost of an insurance policy?
When pricing Public Liability insurance, insurers will consider various factors that affect the level of risk that a business faces. These factors include the size and nature of the business, the level of coverage desired, and the industry or sector in which the business operates. Insurers will use this information to determine an appropriate premium for the policy.
Business Size
The size and revenue of a business can affect the cost of its Public Liability insurance policy. For example, businesses with more employees may have a higher risk of accidents and incidents, leading to higher premiums. In contrast, sole traders are considered lower risk and may pay lower premiums.
When determining the premium for hospitality and restaurant-based businesses, insurers typically consider the number of employees a business has, while for office-based businesses, revenue is a more significant factor in pricing. On average, sole traders in the hospitality and restaurant industry pay around $59 per month for Public Liability insurance.
Coverage Level
The cost of Public Liability insurance does not typically increase significantly as the level of coverage increases. The most common coverage level among hospitality and restaurant businesses is $10 million. Some businesses may choose lower coverage of $5 million or higher coverage of $20 million, depending on their individual needs. On average, customers pay around $65 per month for a Public Liability policy with a $10 million coverage level.
Factors to consider when determining the appropriate level of coverage include the type of risks the business faces, any contracts or industry requirements, and the potential for accidents or incidents.
Business Category
Different types of businesses within the hospitality and restaurant industry can have varying levels of risk and as a result, their insurance premiums may differ. The premium for a business will be influenced by the risk of it potentially causing a claim for personal injury or property damage. Businesses that present a higher risk will have a higher premium and vice versa.
It is important to note that insurance companies may have different assessments of risks for different occupations. One company may consider a certain occupation to be high-risk, while another may not. This can be due to the number of claims each company receives for that specific occupation.
What is the typical cost of Public Liability insurance for businesses in the hospitality and restaurant industry?
Now that we have discussed the elements that influence the cost of Public Liability insurance for businesses in the hospitality and restaurant industry, let’s examine the average premium prices specific to this sector.
What is the average monthly cost for Public Liability insurance?
Hospitality and restaurant businesses can anticipate paying around $69.10 per month for Public Liability insurance. According to data analysis, 21.7% of these businesses pay less than $55 per month, while 52.1% pay between $56-$75 per month for their Public Liability insurance.
Cost by State & Territories
The location of a business in Australia can also affect the cost of its Public Liability insurance premium. Below is a breakdown of the average premium cost by state or territory.
Getting and Insurance Cover
The most accurate way to determine the cost of Public Liability insurance for your business is to obtain a quote that takes into account your business’s specific characteristics. By providing some basic information online, you can quickly receive multiple quotes from leading insurance providers in Australia.