Public liability insurance

Public liability insurance for the right price

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The cost of public liability insurance depends on your business and the risks you face – but if you shop around, you can get a great deal

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How much does public liability insurance cost?

Public liability insurance is crucial to protect your business – but it doesn’t need to be expensive. While the cost of cover depends on your circumstances, it’s possible get a cheap deal on public liability insurance for only a few pounds a month.

10% of Direct Debit customers paid monthly premiums of just £6.78 a month or less, according to data collected by Simply Business, which partners with MoneySuperMarket to bring you the best deals on business insurance (accurate as of December 31, 2019).

If you’re able to pay annually rather than monthly, you could save even more. For instance, an insurer might offer you 10 monthly payments of £7.50, or a full year’s coverage for £55. If your premiums are higher, this single annual payment will be more expensive – but you’ll be rewarded with even bigger savings.

What determines the price of public liability insurance?

Every business is different and faces a different set of risks, so the price of public liability insurance will depend on what you do and how you run your business. A small construction firm, for instance, will have much higher premiums than an office-based business due to the extra risks involved to employees.

When insurers work out their premiums, they’ll estimate how risky your business is, and how likely you are to make a claim on your policy. If they think your business poses a greater risk, your premiums are likely to go up. There are a number of factors that could affect your quote. Some of these include:

  • Your line of business: If you’re in an industry that involves things like dangerous machinery, work at height or even lots of driving, you’ll be charged higher premiums
  • Your exposure: Businesses that frequently interact with members of the public – such as retail – pose a greater risk. If you work from home, your risk will be lower
  • Your turnover: Insurers assume that businesses with a higher gross income will have more clients. This is great for your business, but it exposes you to more risk
  • Your employees: If you’re a sole trader, you’re likely to pose less risk than if you have several people working for you
  • Your health and safety record and previous claims: Your premiums are likely to go up if you have a poor safety record, or if claims have been made against you in the past

How can I get cheaper public liability insurance?

If your premiums are high, you could potentially cut the cost of public liability insurance by improving your health and safety procedures. If you go five years without a claim being made against you, you should be able to get cheaper insurance. You could also avoid riskier elements of your business, such as dealing with hazardous waste.

The best way to get a cheap deal on business insurance is to use a price comparison site like MoneySuperMarket. We’ve teamed up with Simply Business to bring you quotes from over a dozen of the UK’s leading insurers, all available at the click of a mouse. Simply tell us a little about your business, and you could find a great quote within minutes.

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