Updated 10th August, 2023
When you are trying to maintain cash flow in your business, it can be difficult when faced with a large annual bill. One of the easiest ways to spread these costs over the year is to pay monthly public liability instalments to make payments might be more manageable for you and your business.
Why Pay My Public Liability Insurance Monthly?
The main reason that businesses opt for a monthly option is because monthly payments are a good way of spreading the cost of Public Liability Insurance over the whole year. Businesses often find it is more manageable financially with monthly payments rather than getting an annual bill, which always seems to arrive at times where there is not as much cash flow.
Another reason may be that you only need your Public Liability Insurance for a short time and want to pay monthly until you no longer need the insurance. Remember that the majority of Public Liability Insurance policies are annual and you may have to pay extra to cancel early.
Benefits of Monthly Payments
The main benefits of monthly payment public liability insurance are:
- It spreads the cost of premiums throughout the year. If you work as a subcontractor, monthly payments are a popular option because you don’t need to worry about having to pay all of your premiums at once if your bill comes at a time where you don’t have as much work.
- Monthly payments tend to be easier to manage and don’t put as much of a dent into your budget.
- If you run a small business, monthly payment helps regulate your cash flow throughout the year and you aren’t caught out having to pay your premiums all in one go. Although an annual payment option means that you don’t need to worry about your premiums for another year, you don’t want to be caught in a situation where you have a pile of bills to pay all at once as this can impact on the cash flow into your business.
- Flexibility to cancel your policy without having paid for an entire year of premiums in advance. Remember, if you choose to cancel your policy prior to 12 months, fees are likely to apply.
What is Premium Funding?
One way of setting up monthly repayments is through premium funding and is a good alternative if your insurer doesn’t offer monthly repayment options.
With premium funding, you set up a contract with a funding company. The company will then pay the full annual amount of the Public Liability Insurance and then you repay the premium on a monthly basis to the funding company.
If you want to cancel your policy early, the funding company will contact the insurer and you will need to pay any additional costs that come with the cancellation.
What is the Alternative to Monthly Repayments?
As explained, premium funding is one of the most popular alternatives to monthly repayments. However, with premium funding there are additional fees and charges involved.
The other alternative to monthly repayments is to pay your Public Liability Insurance on an annual basis. The benefit of annual payment is that you get it out of the way in one go and don’t need to worry about it again for the next year.
It’s important to remember that some insurers offer monthly repayments at an increased rate compared to annual amount.
Get a Quote
Here at All Trades Cover, we offer monthly repayment options on your Public Liability Insurance at no additional cost to you.
If you’d like to go ahead with Public Liability Insurance, you can obtain quote from us by completing an easy online form.
