Employers Liability cover – why does it keep going up?

I was talking to the owner of a cleaning company yesterday, and she was complaining the price of her Cleaning Company Insurance keeps going up.   She said that every time she employs a new cleaner, her Insurance company puts the price up, and it’s got to the stage where the price has more than doubled.

I’ve been dealing with business insurance for almost 10 years now, so could quickly tell what was going on and why this was happening.

Why her Employers Liability premium keeps going up

The cleaning company insurance policy she bought (online!!) was sold to her on the basis that she will pay ”per head” for the duration of the policy.  In our industry this is often referred to ‘per capita’.  Basically this means that every time the headcount in her business changes, she needs to call the insurance company and pay more (if the numbers are going up).

How to stop your Public and Employers Liability premium from going up

The most frustrating thing about this is that there is another way to arrange cleaning company insurance, which would’ve meant that she would have paid a fraction of what she is paying now, but had the flexibility to grow the workforce without having to pay more and more in insurance premiums each time.

The best thing to do is speak to an insurance broker that has some in depth knowledge of business insurance, or if you’re a cleaner,  cleaning company insurance.

This story is just one of the potential problems with arranging cleaning company insurance without taking proper advice.  For example, did you know that some cleaning company insurance policies don’t cover you if you break something whilst cleaning it? Surely that’s one of the main reasons you’d buy it?

Dan

Evans Insurance Brokers – specialists in Cleaning Company Insurance