How Much Public Liability Insurance?

18/06/2013 -- Mary Simpson
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What does public liability insurance cost?

Basic public liability insurance can cost from as little as £70 a year. 

The cost to your business will depend on:

  • the type of work you do
  • the number of people you employ
  • your turnover
  • your insurance claims history.

A high accident rate and poor health and safety record will hike up the price as will a high risk occupation, e.g., scaffolder, fire alarm installer, welder, gas engineer.

How much public liability insurance cover do I need?

Standard cover levels are £1 million, £2 million and £5 million for small businesses such as plumbers and painters and decorators.

Sub contractors working for local councils and the government could need as much as £10 million.

For some trades your customers or other contractors will demand proof of adequate public liability insurance before they hire you.

Many building contractors make it a condition of sub-contractors that you must have cover up to a specific limit.

If your business carries out work in places other than its own premises (off-site work) the policy needs to apply to these too.

Public liability insurance cover can also be extended to include claims arising out of defective products or design, often referred to as product liability insurance.

If you own a horse riding establishment you are legally required to have public liability insurance.

Public liability insurance doesn’t cover employees, casual or temporary staff – for this you need employers’ liability insurance.