Per Capita Rated Liability Insurance Products

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Per capita rated liability insurance products

What is a per capita rating?

A per capita rating is when a premium is calculated on the number of employees a business has. It is now becoming available on a wider range of trades and professions. Per capita rated liability insurance products generally offer good value for money for small - medium businesses. That said, the premium is calculated on the number of employees, therefore if the company decides to hire more employees the premium might not be as good value for money as it once was.

How much can I expect to pay for a per capita rated insurance product?

If a business has relatively few employees and carries out relatively safe activities, premiums may be low, starting at around £40. This rises when more hazardous business activities are undertaken and as the company grows. The larger the business and the more staff the company employs, the higher the premium will be, and note that at a certain point a per capita rated insurance product might cease being a competitive option.

Up to how many employees can be covered by per capita rated insurance?  

Originally, per capita rated insurance products were intended for businesses of up to five employees. This has now been extended to cover up to twenty employees, although as a word of caution, it does get exponentially more expensive the more employees you have, as it was originally intended to be cost effective for small businesses or sole traders. Therefore larger businesses should consider policies that are specifically designed for them in mind.

What is a per capita rating based on?

A per capita liability insurance product is rated on the nature of a business, how often they carry out their work, where the work is carried out and past claims history. An insurer usually works out a premium based on the number of people involved with the business along with the activities it undertakes. This allows for computers to generate quotes, meaning that businesses are able to obtain cover quickly and more efficiently. 

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