Your business type
All businesses are classified according to the insurance risk they pose. Your business type and the industry you’re in will, to a large extent, determine the cost of your insurance. For example, a mobile food business will typically pose a higher insurance risk than a photographer in terms of public liability, due to the risk of traffic accidents and food poisoning.
Your location
Where your business is situated will also determine the cost of your public liability insurance, as some suburbs and areas may be deemed a higher risk than others. The state you’re in is also a major determining factor. For example, the cost of public liability insurance in Queensland won’t necessarily be the same as that in SA due in part to the different environmental risks at play (such as extreme weather events).
The size of your business
The size of your business will also affect the cost of your insurance in SA. Insurers will consider how many people you employ (unless you’re a sole trader) and your turnover to help determine the risks your business faces, with larger businesses generally being required to pay more for their insurance than smaller ones.
Policy excess
You may be able to choose an excess as low as $200, rising to $500 or more per claim you make, according to the level of insurance you wish to buy. However, the excess you choose will also affect your insurance premiums, with a lower excess generally resulting in higher premiums. There may be instances where an excess isn’t required to be paid, though this will depend on the terms and conditions of your agreement with your insurer.
Your insurance history
Your insurance history will also play a part in determining how much your insurance costs. If you’ve made multiple claims in the past five years, you may find your premiums are higher than a business that has never made a claim.