Our Guide To Public Liability Insurance

If you run a business or work as self-employed you're probably aware of the fact that it is good to have public liability insurance even if it is not legally required. It covers any damage caused by you or your employees to your customers or their property because of your busines activities. This type of business insurance also covers accidental damage to your customers when they are at your premises.

Although you might be following the Health & Safety regulations perfectly there's always the eventuality of an accident to happen. Public liability insurance is not compulsory but it's advisable and could save you a lot of money in case of a damage or accident.

What does public liability cover?

- Compensation claims - for any injuries that were caused on your property to any third parties, any injuries that are related to your business on your customer's premises.
- Legal expenses - any fees for legal proceedings will be covered.
- Cost of repairs - cost of repairing the damage.
- Medical fees - any fees related to medical claims against you.

Key points

* Public liability is limited to £2,000,000 for most businesses and this is good enough for self-employed people. In some cases you might require bigger amounts such as £5,000,000 or £10,000,000.
* The different businesses have different risk levels. Expect the more risky ones to get higher premiums. Such businesses are roofers, handymen, builders, electricians, painters and decorators, plumbers, shops, manufacturers and offices.
* If your business involves events organising, you will need additional cover on your public liability, because these events may not be hosted on your premises and the visitors might still be injured by your company or equipment.

* Self-emplyed , sole traders and craft stall holders also are reccommended to buy PL insurance.
* If you've made claims in the past years, expect your premiums to go up. If you have made more than 2 claims in the past few years, your business might be determined as a high risk one which means that your premiums will go up and remain this high as a minimum.
The size and number of employees your company has also has impact on your premium. The bigger the company and the higher the number of employees — the higher the risk of damage or accident is.

How to find a good quote?

There are many specialised comparison sites that will offer you quotes tailored for your business. All you have to is enter your details and you will be offered a list where you will be able to compare easy all the insurance providers. We think this is the best way to choose a policy that will match your budget and requirements.

What's the average cost?

Reasonably small business and sole traders pay smaller premiums. By comparing quotes from several major providers in UK you may finds prices starting from £40 per year for sole traders.  But the average public liability insurance annual cost is about £120.