In business, accidents are unavoidable especially if you are dealing directly with the public. Thanks to public liability insurance that will cover claims if your business caused another party’s public injury or property damage. But when it comes to the public liability insurance cost? It varies depending upon various factors including the size and type of your business, your claim history and the level of cover you need. If your business is riskier than the normal circumstances, you may be liable to pay a higher price for this insurance.
To keep your business protected from third-party liability claims, you can compare many online brokers, review their cost, coverage, and policy to get the right insurance as per your need. Let’s delve into the details.
What is Public Liability Insurance?
Public liability insurance in the UK refers to the general liability insurance of the US. It protects business owners against the claims of members of the public (third party claims). Commonly, it provides coverage against the public liability involving slip-and-fall accidents, where a member of the public faces injury or property damage within your business premises. You need to remember that this insurance doesn’t cover your personal and advertising claims. For this reason, it is inexpensive than other types of insurance.
What does this Insurance Cover?
As stated, this insurance covers third party physical injuries and damages of the property of people other than your employees due to your business operations. For instance, if a member of the public gets injured by falling over a piece of your equipment, public liability insurance covers their medical and legal expenses. Typically, this insurance covers:
- Physical Injury: It includes falling, slipping or getting an injury of your customers and the member of the public. This insurance ensures that the financial risk associated with the injury is covered.
- Damage to Property: It includes third-party property damages that have taken place while you’re working.
- Legal Expenses: In case if a member of the public sues you due to injury or property damage, public liability insurance covers the legal cost as per your policy limit.
If your business is directly associated with the public, it is more prone to third party liability risk. The only solution for this is to get public liability insurance.
How much does Public Liability Insurance Cost?
The average annual cost of this insurance in the UK is typically around £119. Nevertheless, small businesses and sole traders can pay as little as £40 on annual basis. This cost will depend on numerous factors like the amount of the cover, your profession/business type, location, etc.
Let’s find out the general cost of PL insurance as per the cover. If you take a cover of £1 million, it will roughly cost you around £100. You need to know that the more your cover amount, the higher will be your insurance premium. In case you take a cover of £2 million, you need to pay an extra of £12 on average. For £3 million insurance cover, you’ll typically need to pay £140.
When it comes to business type, the PL insurance varies based on the work you do. If you’re performing something where there are high risks of work injuries, property damage, the rate of insurance will be higher. For instance, if you’re a builder, your insurance premium will be more than that of a tutor.
Another factor that significantly affects your public liability insurance cost is your business structure. Typically, the sole trader pays less around £65 on average. Partnerships pay around 37% more than sole traders. If you’re owning a limited company, you pay equal to a partnership or more based on the number of directors you have. However, these rates vary from industry to industry.
Quick Wrap Up
In conclusion, we can say that many factors affect your public liability insurance cost. The most important factor is the amount of cover you take and the vulnerability of your business to the third party claims against the injuries and damages. The minor factors include the industry you work in, your excess, business structure, location etc. We have provided the estimated cost as per different factors for your assistance. To choose the best PL insurance, you first need to run an online quote and answer the questions of your insurance service provider accurately and get the cover that ensures full business protection against the possible claims.
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Disclaimer: This blog is intended to provide general information on the PL insurance cost.