How much does public liability insurance cost?

The insurer needs to understand what your business does and the losses it could cause. These factors may affect the price, terms or whether cover is offered. Insurers do not all ask the same questions or calculate prices in the same way.

Factor	Why it matters	What to prepare
Actual activities	Tasks create different risks to people and property.	All services, including occasional work.
Work settings	Different premises expose you to different people, property and working conditions.	Where work takes place and the premises involved.
Business size	Turnover and other requested figures help describe the amount of work you do.	Turnover and other information requested.
People working for the business	Their tasks and working arrangements help describe the risk.	Staffing and subcontracting details requested.
Claims history	Earlier claims and known problems may affect offered terms.	Accurate claims and other relevant information requested.
Selected terms	Limits, excesses and restrictions change what is insured.	Required cover and contractual conditions.

Your work and exposure to people or property

Example: cleaner. A cleaner works on customers’ surfaces and moves equipment through their premises. The insurer needs the methods, products and property involved, including whether damage to the item being cleaned needs additional cover. See cleaner insurance for checks specific to cleaning businesses.

Example: builder. A builder undertakes different projects at customer sites. The insurer needs the actual activities and settings, including structural or specialist work where undertaken. See builder insurance for checks relating to building projects.

These hypothetical examples illustrate pricing considerations, not actual prices or which business will pay less. Working alone or running a small business does not establish that the potential injury or property loss is small.

Turnover, staffing and claims

The figures requested help describe the business; there is no universal turnover multiplier or price per person.

People working for you can be relevant to a public liability application because of the work they perform. Cover for their own work-related injury or illness is a separate employers’ liability question. Do not treat the two types of cover as interchangeable.

Give accurate claims information and raise known problems when relevant. A price based on incomplete details is not a useful comparison.

Specialist work can affect availability as well as price

Tell the provider about work involving flames or heat-producing equipment, heights, structural operations, chemicals or specialist sites where relevant. Describe occasional tasks too.

Paying more does not necessarily mean the insurer will cover specialist work. Confirm which activities are insured before relying on the quote. The provider may need more information or different terms.

A published price can provide context if it describes clearly defined businesses and cover. Check whose prices were measured, what was included and how the figure was calculated.

Average, starting price and customer thresholds

Use the explanation or footnote beside the price to distinguish these figures.

Price reference	What it tells you	What it cannot establish
Mean	All prices added together, divided by the number of prices.	What your business will pay.
Median	The middle price when prices are arranged in order.	The mean of all prices or your own quote.
Starting price	An advertised starting price on the stated basis.	A guaranteed offer or market minimum.
Customer or quote threshold	A stated proportion paid or was quoted below or at a figure.	The average price.

For a median with two middle prices, use their arithmetic mean.

A statement such as “10% paid less” describes a proportion of customers. It does not tell you the average price. Also distinguish quotes offered from policies bought: they are different groups of prices.

What a useful benchmark needs to show

Check:

• the original publisher and the period when prices were collected;
• the businesses, occupations, locations and eligibility included;
• quotes versus purchased policies;
• standalone public liability or combined cover;
• limits, excesses and additional cover; and
• payment basis, tax inclusion and excluded charges.

A recently updated page may still use older price data. If the measure or assumptions are unclear, the figure is a weak basis for your budget.

Check the amounts and conditions as well as the price. Understand the difference between the price you pay, the cover limit and your contribution to a claim.

Term	Meaning for the comparison
Premium	The price of the insurance on the stated basis.
Cover limit	Sometimes called the indemnity limit: the relevant maximum the insurer will pay under the policy’s terms.
Excess	The amount your business must contribute towards a claim where the policy requires it.

The limit is not the premium, and an excess is not a guaranteed yearly bill. Check whether your business could afford that amount if a relevant claim arose.

Comparing £1 million and £5 million limits

A £5 million limit does not necessarily cost five times as much as a £1 million limit. Compare quotes with the same business details, period, activities and other relevant terms.

These amounts illustrate how limits differ; check which options are available for your business.

Consider possible injury and damage, as well as contract requirements, before lowering a limit to meet a budget. Our guide to how much public liability cover you need explains the selection in more detail.

Excesses, sublimits and important conditions

Quotes with the same headline limit can differ. Additional cover is sometimes called an extension; a sublimit is a smaller limit for a particular type of claim.

Check:

• the excess and whether your business could afford it;
• smaller limits for particular claims;
• restrictions and any additional cover; and
• whether defence costs count towards the headline limit or are paid in addition.

A higher excess does not always lower the price. Check the options actually offered.

Read about limits and excesses and business insurance exclusions when comparing those differences.

First check whether the monthly figure is an actual payment offer or simply the annual price divided by 12.

Monthly equivalent versus actual payments

An annual price divided by 12 is a monthly equivalent, rather than necessarily an available payment. Use this table to check what the displayed figure means.

Price presentation	What to check
Annual-payment price	Stated period, cover and applicable fees.
Displayed monthly equivalent	Whether it divides the annual price by 12 and excludes instalment charges.
Actual instalment offer	Initial payment, later payments, charges and full total payable.

Actual instalments and total payable

Record:

• the initial payment, including any deposit;
• the number and amounts of later payments;
• relevant fees or interest; and
• the full total payable.

Check that the schedule agrees with the total. Do not count a deposit or charge twice. Check whether the stated amounts include tax.

Do not assume twelve equal payments, universal interest charges or that every monthly arrangement costs more. The actual offers determine the comparison.

Simply Business currently states that monthly instalments involve interest. Check the payment schedule, charges and total payable for your actual offer.

For the wider budget and cash flow across different types of cover, read our business insurance cost guide.

The advertised example may describe different activities, customers, limits or payment terms from your offer. A promotional threshold concerns the stated group rather than a price guaranteed to be available to you now.

Use the benchmark checklist above to identify the differences. Check included sections too: one offer may include products liability or other cover alongside public liability.

Ask the provider to explain differences between your quote and the advertised example.

Compare on a consistent basis while keeping the cover your business needs. Use these steps to identify meaningful differences:

1. Use consistent, accurate business details.
2. Confirm the activities are insured and the policy meets your contract’s insurance requirements.
3. Compare limits, excesses and additional cover.
4. Identify important exclusions and restrictions.
5. Separate public liability from additional package sections.
6. Calculate the total payable from the actual payment offer, checking it against the stated total.
7. Ask the provider to explain unresolved differences.

Do not understate activities, turnover, staffing or claims to reach a price. Check before removing needed cover or reducing a limit below contractual requirements. An excess the business cannot afford is also a practical concern.

Assess the actual offer and whether its terms meet your needs. Our guide to comparing business insurance quotes explains the fuller process.

Your renewal price may change because activities, business size, workforce, claims information, selected cover, payment terms or insurer pricing have changed. Compare the documents and ask the provider which changes explain the new price.

Check the terms and total price before deciding whether to renew or switch. Do not cancel first on the assumption that another policy will be cheaper or equivalent.

Our business insurance renewal guide covers the full review process.

Have these details ready when comparing quotes through Simply Business. Clarify any application category that does not fit your work.

• Business details and all activities, including occasional services.
• Work locations, premises, public access, specialist settings and countries involved.
• People working for the business and their arrangements.
• Turnover and other financial figures requested.
• Claims history and known problems that could lead to a claim.
• Required limit and contract requirements.
• Preferred start date, existing cover and renewal details where relevant.

Business insurance requires a fair presentation of the risk. This generally means clearly disclosing material information the business knows or ought to know. Or, failing that, give enough information to alert the insurer that it needs to ask further questions.

Material information could influence whether a prudent insurer accepts the risk and on what terms. Answering application questions alone may not be enough.

Ask the broker or insurer if you are unsure what to disclose.

Requesting a quote does not start cover.