Do I need Public Liability Insurance for my business?

This is a question we hear a lot!

Some of our customers ask us if they need Public Liability Insurance as they are a small business and don’t have many business visitors so why should they bother buying it.

We believe that it is a wise and often essential measure because the average cost of claim if an accident did occur is in excess of £10,000. This means that one single claim could threaten the very existence of a new small business and cause financial issues for businesses of a larger size too. This type of insurance gives you peace of mind that should the worst happen you will be fully protected and able to continue your business.

It is also important to consider the impression that it gives to customers, particularly other businesses with whom you trade. By demonstrating that you have the appropriate cover shows you are concerned about mitigating risk and protecting both your own and your customers’ interests and safety. Not having this cover could see you losing a tender as some contracts will insist you hold this cover to be part of the contracted workforce. By holding increased Public Liability cover this can mean that some businesses can tender for larger contracts and continue to grow.

What is Public Liability Insurance?

Public Liability Insurance provides cover for your business against claims following injury or death to members of the public and your customers as well as claims for loss or damage to their personal property.

It will cover you at your business premises, whilst you are at a customers’ premises or place of work or whilst people attend an event your business has organised.

This type of insurance will not cover employees of your business, subcontractors contracted to your business or temporary or student staff, for that you will need Employers Liability Insurance.

How much Public Liability Insurance cover do I need?

All policies have a minimum level of cover of £1m although you can also buy cover for £2m, £5m or £10m limits. Most businesses will not require the highest level, generally larger building projects or local authority contracts may insist on this £10m limit however and some even higher limits than that depending on the specific risks involved with the work being undertaken.

It is becoming widely accepted that unless your business is quite small the lowest level of cover of £1m may not be adequate. There have been some cases reported in the press recently where court awards have dwarfed this limit so getting specific advice from an insurance broker about your business is invaluable.

How much will Public Liability Insurance cost me?

Like most insurance premiums this will depend a lot on what your business does, how many people it employs, what it’s turnover is and whether you have made claims in the past. Many insurers offer premiums starting as low as £50 so the cover can be very cost effective.  The cost will increase the larger your business becomes or as your workforce grows so it is vital to regularly review your cover, again your insurance broker should be in conversation with you more often than just at your policy renewal.

Whilst the most common way to buy this type of cover is on annual policy it is possible to buy a standalone policy for a specific event or show that you may be attending or exhibiting at.

You can call us on 01233 512548 or email If you prefer we can call you, just register your details on our contact form and we will call you back.