How Much is Public Liability Insurance?

Public liability insurance can be an important consideration for many businesses, but how much does this type of cover cost? We explore what can affect the price of public liability insurance below.

Kristina Fox Last updated on 09 August 2022.
Fact Checked
How Much is Public Liability Insurance?

Public liability insurance is one of the options available to you when you take out business insurance. Depending on your circumstances, the price of this cover can vary. Below, we look at how much public liability insurance can cost and what can affect the price of your premium.

What is public liability insurance?

Public liability insurance is a type of business insurance that can cover successful claims made against you if a member of the public is injured, becomes ill or dies because of your work, or if their property is lost or damaged.

If a member of the public did make a successful claim, your business could be liable to pay compensation, legal fees and medical costs (if applicable). Public liability insurance could pay out to cover these costs.

Public liability insurance is not a legal requirement, but it may be worth considering if you have even a little contact with the public.

» MORE: Public liability insurance explained

How much does public liability insurance cost?

The price of public liability insurance will differ, depending on your business’s individual needs and circumstances.

For example, if your work is high risk, you may have to pay more for your public liability cover than a business that operates in a low-risk environment.

For some businesses, public liability insurance may only cost a few pounds a month, while for others it could cost much more. To get an accurate idea of how much it would cost for your business, you can get a quote that takes your specific circumstances into account.

As well as your premium, you may have to pay an excess if you make a claim. This is the amount that you pay for each claim before your insurer covers the rest. The cost of your excess is agreed when you take out your policy.

» MORE: Do I need public liability insurance?

What can affect the price of public liability insurance?

The cost of your public liability insurance cover could vary based on details such as:

  • the nature of your business
  • the size of your business
  • your annual turnover
  • the level of cover you choose
  • how many people (if any) you employ
  • where your business is located
  • whether you have previously made any public liability insurance claims

» MORE: ​​How much is business insurance?

How much public liability insurance should I get?

How much public liability insurance you may need depends on your specific business circumstances. Quotes and policies can be tailored to your requirements, so it’s worth talking to an insurer to organise the right amount of cover for your business.

Your cover limit is the most your insurer would pay out if you made a claim. Common claim limits range from £1 million to £5 million, though the level of cover offered varies by provider and some will offer more.

If you work in a high-risk profession, you may want to consider a higher level of public liability insurance. For example, if you are an electrician, builder or cleaner who works with dangerous tools or chemicals that could cause severe injury or damage.

Clients may request that you have a certain level of cover before agreeing to work with you. For example, public sector clients usually require you to have insurance worth at least £5 million.

You should bear in mind that you will be responsible for making up any shortfall not covered by your policy if a claim exceeds your cover limit.

What’s more, you should think about whether you would be able to afford the cost of a claim if you didn’t have insurance.

Get a public liability insurance quote

To find out how much public liability cover could cost for your business, it’s a good idea to get a quote from a provider. This will be tailored to your specific circumstances so it reflects how much you could pay for your policy.

You can buy public liability insurance on its own or as part of a larger business insurance package, depending on your needs. If you’re also looking to take out product liability insurance or employers’ liability insurance, for example, you may want to consider a combined policy with the same provider.

It’s also possible to get public liability insurance for events, including one day activities.

» COMPARE: Public liability insurance

Image source: Getty Images

About the author:

Kristina is a writer at NerdWallet. A recent graduate trading French for finance, she has experience creating content for student newspaper Cherwell and an edtech company. Read more

Has your business got the right public liability insurance cover? Compare public liability insurance now

If you have any feedback on this article please contact us at [email protected]