Public Liability Insurance Cost: All You Need to Know in 2023
Public Liability Insurance usually ranges from £56 to £481 annually, with the average being £119 a year. P ublic liability insurance is one of the most significant covers a business can acquire. Whilst it is not compulsory, it is still imperative in saving a business potentially millions of pounds. Aerobics Pescara – Pescara fitness club in r. L.… equipoise steroid fitness rome – star light sports association… However, this is an inaccurate representation of how much you should pay for your premium . Small businesses do not need a high level of cover hence why paying this average can be a waste of money, whilst large businesses will find it is not nearly enough to cover the costs of the claims they will likely have to deal with.
If you would like to read more information or learn more about the pricing of business insurance, you can do so here .
Below is a table of current UK providers ranked by cover options and Trustpilot ratings:
Rank
Company
Professional Indemnity
Public Liability
Employers liability
Cyber
Trustpilot Rating
1
AXA
✓
✓
✓
4.3
2
Directline
✓
✓
✓
✓
3.8
3
Aviva
✓
✓
✓
4.6
4
Markel
✓
✓
✓
✓
4
5
Hiscox
✓
✓
✓
✓
3.1
6
Chiswell
✓
✓
✓
4.1
7
Covea
✓
4.1
8
Zurich
✓
✓
4.1
9
Ageas
✓
✓
4.1
Why is Public Liability Insurance Important? Public Liability insurance covers:
Compensation payouts
Hospital treatment, including ambulance costs (if the NHS
The cost of damage repair
Legal fees
Other Expenses
Public Liability Insurance Cost: High Cost and High Coverage The maximum coverage an insurance company will offer a business is usually £5 million . Still, in the rare case that you have an exceptionally high revenue or many employees, you can negotiate a higher cover. The average quote for maximum covers is around £140, which in contrast to the average settlement of £13,500, magnifies how insurance can save you thousands.
For example, if an employee for an interior design firm visits a client at their property for a creative discussion but knocks over a lit candle, this could cause a fire. If this is not extinguished immediately, it could cause severe damage, and the client would file a claim for destroying their property in addition to a lawsuit. The legal fees and compensation costs alone may cost hundreds of thousands, and having a high level of cover would save the company from expenses that may have been detrimental to the future of their business.
Businesses that should consider high coverage public liability insurance have a higher annual income than other companies, hire more employees, or are dangerous compared to other professions. For example, builders often work with explosive gases prone to causing fires, heavy machinery that is difficult to operate and sites in hazardous locations.
Because this is riskier to insure, the premium may be higher, but having more coverage is beneficial when comparing it to the costs of a payout should a member of the public be hurt in an accident. For example, a builder costs around £225 to ensure, and an engineer £130.
Public Liability Insurance Cost: Medium Cost and Medium Coverage A considerably lower cover offered by insurers is £2 million worth, which is the usual cover businesses tend to opt for. It is not much cheaper than the average high coverage insurance, at around £119 annually, because insurers don’t tend to vary premiums proportionally to their coverage.
Nevertheless, this cover is still acceptable and is sufficient to cover the medical expenses, replacement costs and suffering reimbursement associated with high-level claims.
For example, if a member of the public gym comes in for their daily workout and uses the equipment which wasn’t marked, they may find it too heavy and drop it on their foot. Consequently, they may break a few bones and hold the gym liable. If they were to take legal action against the gym, the company would need money to hire legal representation to fight the claims that they were at fault, regardless of which party was liable.
If these fees combined with the medical treatment of the third party cost them £1.5 million combined, this would be covered by insurance. Compared to the £119 premium, this is incredibly cost-efficient. Without insurance, the gym would likely go into liquidation and fail, highlighting why even a medium coverage should be obtained.
Public Liability Insurance Cost – Low Cost and Low Coverage Low coverage public liability insurance is often considered to be up to £1 million, although increasingly, more insurance companies are removing this and offering a minimum of £2 million. This, on average, costs around £105 annually, which is not much of a difference compared to medium coverage. Typically, this is encouraged for new businesses that do not have the funds to obtain an advanced insurance policy and don’t need to.
Small businesses have a significantly lower risk of claims because they usually have a smaller client base. Their yearly income is lower, posing less of a threat to insurers. Claims often consist of minor injuries like a sprain from a fall or slip or trivial damage to property like a worker spilling water over their client’s laptop. Of course, this is still a significant amount for a small business to replace, with electronic devices often costing hundreds of pounds to replace, which is why some sort of cover can still be beneficial.
Public Liability Insurance Cost – To Conclude Overall, public liability insurance plays a crucial role in protecting a business’s assets and providing companies with a sense of security, knowing that any accidents they cannot predict will not affect their profits. Although it is difficult to gauge how much this insurance can cost, with covers as low as £40, you can research insurance companies and ask for a quote after comparing it to the average.
Find out more about the importance of insurance here .
Other useful links about Business Insurance:
Professionals Insurance
Project Manager Insurance
Property Manager Insurance
Remember to Compare Your Business Costs is here to help your business every step of the way from business advice , or saving you time and money on your business purchases such as: