How much does public liability insurance cost?

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Calculating public liability insurance

Business insurance can be confusing. At Hiscox, we try to keep things simple, so to cut through the jargon, here are plain English definitions of the most common business insurance terms you may encounter as a small business owner or freelancer.

How much you pay for public liability insurance cover is dependent on the size and type of your business, your claims history, and the level of risk your business undertakes. While these factors mean there is no one average cost of public liability insurance, quotes from Hiscox start from just £55 a year* and some policies can go on to include up to £10 million of cover.

Calculating the cost of public liability insurance

There are several factors that can have an impact on the public liability insurance price offered by insurers. When calculating premiums, insurers will predict how likely you are to make a claim, and how much they believe that claim would cost.

Before you buy your policy, assess what level of cover is right for your business and the risks unique to its operations. To give you an example, your public liability insurance cost may be higher if your business has a high turnover, if you use a lot of equipment or dangerous machinery, or if your business premises experiences a high volume of visits from members of the public.

Insurers may also use the following information about your business to calculate your premium:

  • The size of your business
  • The location of your business
  • The industry you work in
  • The type and nature of your business
  • Your business turnover
  • Your health and safety record
  • The level of public liability insurance cover you’ve chosen
  • What you’ve chosen to include or exclude within your insurance policy

In some cases, you may also find clients expect you to have a minimum level of cover, according to your area or industry. This is often the case for businesses working with the public sector where the minimum requirement is usually between £5-10 million.

The easiest way to calculate the price of public liability for your business is to run a quote online. Hiscox offers a standalone policy or a business insurance package for more comprehensive protection.

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*figures based on policies from at least 10% of our customers