Public Liability Insurance
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Why Compare Public Liability Insurance With SimplyQuote?
As a business owner, the last thing you should have to worry about is if one of your customers is injured on your premises or by your work. This is where SimplyQuote comes in!
We understand that taking out a public liability insurance policy may not be at the top of your list of things to do, which is why we’ve streamlined the process.
After filling in a short online form, the comparison tool will do all the hard work for you. You’ll be provided with quotes from the UK’s top insurers, specifically tailored to your business needs and budget. All you then need to do is choose the one that works best for you!
Don’t fall victim to out-of-pocket legal fees and compensation payments; compare public liability insurance with SimplyQuote today!
Do I Need Public Liability Insurance?
If you own a business that provides a service to or works with the general public, taking out public liability cover is a no-brainer.
Without this insurance, your business could face significant financial loss if you were to be sued due to injury and property damage that occurred at your business or because of your business.
According to Statista, the UK’s most common accidents are slips, falls and trips. And when these accidents happen at your place of business, best believe you will be the one paying when a member of the public makes a claim against you!
This type of business insurance is vital if you want to responsibly manage your company’s risk.
However, this type of insurance is not just limited to accidents that occur on your business premises, but rather any accidents that result from one of your employees or a service you provide.
You will need public liability cover if:
- You have contractors or employees that conduct work at customer’s properties.
- Your work is carried out in public spaces, including with the government or local councils.
- Your customers visit you at your place of work.
- Members of the public attend your activities or events.
- You are self-employed or a sole trader and your work involves interacting with the public.
- You work with clients that require you to have this type of insurance.
While public liability insurance is not a legal requirement in the UK, it’s worth considering if your business falls into one of these categories.
It’s also great to have in terms of public perception. Your public liability insurance certificate shows other businesses and customers that your company is responsible and trustworthy. It’s like a badge of honour that you can display on your website or in your store to show that you care about your customers’ overall well-being.
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What Types Of Businesses Need Public Liability Insurance?
Let’s look at some specific examples of businesses that can benefit from taking out public liability insurance coverage:
- Builders
- Dentists
- Hairdressers
- Window cleaners
- Fast food delivery drivers
- Electricians
- Plumbers
- Private hire taxi drivers
- Cleaners
- Maintenance workers and road workers
- Caterers
- Event organisers
- Motor traders
- Restaurants and cafes
Basically, any business that involves directly interacting with customers would need public liability insurance.
What Does Public Liability Insurance Cover?
Public liability insurance covers your business against compensation claims and legal fees if your business is responsible for injuring a member of the public (client, customer, supplier, passerby) or damaging property.
It can also cover any medical fees that result from the person’s injury.
For example, if your business damaged a client’s laptop while you were working on it or if a piece of business equipment fell on a customer while you were repairing a wall, you will be covered.
What Does Public Liability Insurance Not Cover?
Public liability insurance doesn’t cover the following:
- Penalties or fines issued to your business.
- Claims made by your own staff (employees, students, temporary staff, or individuals on work placements)
- Any damaged or broken company equipment
- Costs related to damage or repairs for products your business supplied
- Costs related to damage or repairs for faulty work
- Environmental cleanup issues caused by your business
While these instances do not form part of a public liability insurance policy, there are plenty of other types of business insurance policies that do cover some of these costs (more on this later).
How Much Public Liability Insurance Cover Does Your Business Need?
While there is no set amount of cover that a business needs, public liability cover is usually around £1 million to £5 million.
However, when you are determining the amount of cover you need for your specific business, it’s a good idea to consider the following:
Level of risk
It is important to consider the risk involved with your business while working with or for members of the public. In realistic terms, the higher the risk, the more cover you’ll need.
Let’s look at a couple of examples:
- Builder: Your level of exposure to the public is high as you will often be in contact with passersby or customers. You work with heavy, dangerous equipment that can cause significant damage and pose a high risk to third parties. As a result, you will need public liability cover of around £10 million.
- Self-employed mortgage advisor: You will have less exposure to the public than a builder. Since you conduct your business in your client’s home, your only equipment is a laptop and a folder – low-risk items to any third party. As a result, you will only need cover of around £1 million.
Contracts and clients
Some clients or contracts will specify how much cover your business will need if you were to carry out the work. Additionally, local councils and government work often require a minimum coverage of £5 million from their suppliers.
This type of coverage is often non-negotiable. So, if you want the job, you’ll need to ensure that you’re adequately covered.
Associations and trade bodies
Certain associations and trade bodies require you to have a specific amount of public liability insurance cover to practice.
This information should be checked under your membership details before you take out any policy.
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How Much Does Public Liability Insurance Cost
On average, small businesses in the UK can expect to pay around £14.30 monthly or £118 annually for public liability insurance. However, the cost of this insurance can vary between £50 to £500+ annually, depending on your type of business.
If you take into consideration the average cost of an insurance claim of £13,500, this is really a small price to pay to secure your company’s financial health.
The amount you pay for public liability insurance depends on several factors, including:
Trade or profession
Some trades carry a higher risk of third-party injury or damage. Trades that use a lot of equipment or dangerous machinery are likely to cause more harm to the public, making the business more expensive to insure.
Number of employees
The more staff you have, the bigger your business and the more likely accidents can occur. For these reasons, your premiums may be higher if you employ a lot of people.
Number of third-party visitors
If your business has lots of visitors, you are thought to be at a high risk of an accident occurring (remember, trip, slip and fall incidents occur daily in the UK!). So, the higher your premiums are likely to be.
Claims history
Insurance companies are more likely to class you as being as high risk if you have made business insurance claims in the past. If previous claims have been made, your premium is likely to be a lot higher than businesses that have never made a claim.
Business turnover
The larger the business, the higher the risks. Again, this means premiums are likely to be more expensive.
Health and safety record
Insurance companies are likely to view businesses with an up-to-date health insurance policy as low risk.
Similarly, if your health and safety have been scored below standard, you are more likely to experience higher premium rates.
Amount of excess
An excess on public liability insurance is the amount of money that the business must pay towards any claim before the insurance company will pay the rest.
Generally, higher excess will result in lower premiums; however, this means you’ll have to pay a higher amount when you make a claim.
How Can A Business Save Money On Public Liability Insurance?
To save money, it’s crucial that you compare public liability insurance quotes and shop around to secure the right policy for your business.
Whether you’re looking at renewing your insurance, updating your policy or wanting to take out insurance for your new small business, SimplyQuote can help you find the policy best suited to your business needs.
Tips to help you save on your insurance
- Provide your prospective insurance company with your no-claims history.
- Take out a higher excess on your policy to lower your monthly premiums.
- Research each insurance option in detail to ensure you don’t pay for cover you don’t necessarily need. Your insurance provider should be able to help with this.
- Promptly report work-related accidents, illnesses and near-misses to the Health and Safety Executive, have an updated health and safety policy, and adequately train your staff on safety.
Note: Keep in mind that the cheapest quotes won’t always provide the best level of cover. The financial loss incurred by a claim could far outweigh the costs involved in opting for a more comprehensive insurance plan.
What Other Types Of Business Insurance Can You Get?
While it is evident that a business will need public liability insurance when it comes to fronting the costs of compensation claims, it is very specific to third-party incidents and certain types of businesses.
However, there are a couple of other types of business liability insurance policies that you can consider taking out to ensure comprehensive cover.
- Professional indemnity insurance: This type of business insurance is great to have if you’re an advisor, lawyer or healthcare professional. Professional indemnity insurance covers the costs of claims made against you or your business due to negligent services or advice offered.
- Product liability insurance: If you need to cover compensation claims due to your product causing injury or property damage, product liability insurance would come in handy.
- Employers’ liability insurance: Unlike public liability cover, employers’ liability insurance is a legal requirement, and you could face a hefty fine if you don’t have it. This type of insurance covers any claims made by your employees.
- Goods in transit insurance: This coverage pays out for lost or damaged goods that are being transported. This includes during the transit, loading and unloading, and temporary storage phases of transportation.
- Commercial property insurance: This insurance covers the costs of repair to your own business property and the replacement of business equipment and stock.
How To Compare Public Liability Insurance Cover With SimplyQuote?
Comparing public liability quotes with SimplyQuote couldn’t be easier!
Here’s how it works:
- Tell us about your business: Where you’re based, what type of business you have, the number of staff members you have and how long you’ve been operating for.
- Choose your coverage: Select how much cover you require.
- Receive multiple quotes: The comparison tool will provide you with a bunch of different public liability quotes from the UK’s top insurers, allowing you to compare options and choose the best one for your business and needs.
Frequently Asked Questions
Public liability insurance protects you and your business against any third-party claims that could be made in the event of an accident or injury.
It also covers property damage as the result of a product or service your business may have supplied. In such an event, compensation is often paid out to the claimant if the claim goes in their favour.
Public liability insurance covers this cost as well as any legal costs that could be incurred and money used to repair any damaged property.
Without liability insurance, your business would have to cover the legal and compensation costs, often out of pocket.
The limits of public liability insurance vary from policy to policy. However, they generally cover up to a certain amount of compensation for claims arising from negligence or injury caused by the business’s products or services.
Yes, your public liability insurance premiums are tax deductible as it’s considered an allowable expense. So, the good news is you can deduct this business insurance when it’s time to calculate your taxable profit.