How much public liability insurance do I need?

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The amount of public liability insurance your business needs will vary between industries and is dependent on the scale of contracts and the amount of public contact your work entails. Liability cover of up to £10 million is available from Hiscox for compensation pay-outs and legal defence.

Public liability insurance is not compulsory, so it’s up to you to decide how much cover you want to take out. The best way to work out how much liability cover your business needs is to consider the scale of the work you do and the possible extent of compensation claims. Assess the level of risk associated with your work and how much it could cost to repair any damage caused.

Compensation figures can take into account costs such as medical and ongoing care, as well as loss of earnings as a result of injury, taking them into the millions. Hiscox public liability cover can also cover legal fees and expenses of up to £100,000 accrued defending a claim.

What level of public liability is right for me?

Your cover level is the maximum amount that your insurer will pay out if you make a claim. Hiscox offer public liability from £55 a year (based on policies from at least 10% of our customers). The highest level of liability cover available through us is up to £10 million.

If your business is considered high-risk, either because of the operations you carry out or the nature of your interactions with the public, then the level of public liability cover your business needs will be higher.

Another thing to consider when choosing your policy, is that some clients stipulate a particular level of cover from businesses they work with as part of the contract. This is particularly common among public sector businesses; for example, government and local authorities usually require at least £5 million of public liability cover.

In a similar vein, some trade bodies and associations require their members to have a particular level of cover in place, so it’s worth checking membership details.

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