How Public Liability Insurance Cost is Calculated

3rd June 2010


does Public Liability Insurance Cost?

A basic insurance policy can cost less than

£100 a year including insurance premium tax. The cost of the premiums will

depend on the type and nature of your business, your turnover and the number of

employees.  The number of areas you would

want to cover in your policy might also affect the cost of the premium.

Given below are some reasons when quoted

prices can increase:

  • The higher levels of risk associated with your business, its

    turnover and the number of employees

  • Higher business turnover is a reason for greater premiums
  • If your company has a large amount of employees, this too

    increases cover costs


much of insurance cover will you need?

Public Liability Insurance Cost will also

depend on the amount of cover that you will require. For small businesses such

as plumbers, electricians, painters, carpenters etc. the limit is usually

between a minimum of £1million and £5million.

In some trades your customers or potential

customers will demand for proof of adequate public liability cover before

offering you the job or allowing you to work for them. Businesses in the

construction field make it a condition that you have a cover up to a specific


If your business takes you out to work in

places other than your own premises (off-site work) this policy needs to be

applied for this situation too, including on-site as well.

The public liability cover can also be

extended to include claims made for defective products or design. This is often

referred to as product liability insurance.

The ideal way to compare and decide on the

best Public Liability Insurance Cost is by calling for quotes from a number of

insurers. These insurers can either be online or offline agents. Calling for a

quote from an online agent is a simple exercise, where you only got to fill in

a form that is found on their website. This form will call for some basic

information of your business. Once this is complete, the quote will be sent to

your email address immediately. You can call for these quotes from a couple of

insurers within a few minutes. Once receipt of these quotes, you can study them

carefully and select a policy which offers you the best Public Liability

Insurance Cost.

Always bear in mind that different

insurance agents charge different prices for different levels of cover. Thus

the reason to study the policy thoroughly before you place your signature on

the agreement.


questions that you can ask your insurer when buying a Public Liability


  • The level of cover: It is important that

    you compare your Public Liability Insurance Cost with the cover. The quote will

    differ according to the slab of the cover.

  • The excess: The amount you will have to

    pay to make a claim.

  • Exclusions: What specific areas are

    prohibited or not allowed in the policy.


Abroad: Whether the policy is yet applicable if you

work outside the country of your residence.