Public Liability Insurance

What does public liability insurance cost?

Basic public liability insurance can cost from as little as £60 a year (plus insurance premium tax).

The cost of the premiums will depend on the type/nature of business, its turnover and number of employees.

The prices quoted will increase due to:

• The higher level of risk associated with a business, its turnover and number of employees
• Higher business turnover attracts greater premiums
• More employees will increase cover costs

How much public liability insurance cover do I need?

Limits are usually between a minimum of £1million and £5million public liability cover for small businesses such as plumbers and electricians. Sub contractors working for local councils and the government can be asked to increase the limit to £10 million and over.

In some trades your customers or potential customers will demand proof of adequate public liability insurance before allowing you to work for them. Many contractors make it a condition of sub-contractors that you 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 this too, as well as on-site.

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.