How Much Does Public Liability Insurance Cost?
Advice About Public Liability Insurance Costs
No matter which industry it is that your business is in, the one thing that you
should never scrimp on is insurance. Let us say that you have a small office
with expensive office equipment inside. If you will not get an insurance policy
to protect your office from theft, possible fire or other similar instances,
what will you do in the event of thefts of fire? Instead of starting again from
scratch using your own money, you can put the pieces of your business back
together by claiming compensation from the insurance company that you hired.
The same thing holds true when a customer or members of the general public
suffers a loss or damage to property, as well as injuries resulting from dealing
with your company. Instead of the money for the compensation having to come from
your company funds, the insurance company will be handling it for you instead.
This is called a public liability insurance plan.
How Public Liability Insurance Plans Work
The way that public utility insurance plans work is pretty much the same as
regular insurance. As a business owner, you will simply be transferring the risk
of your company getting sued by a customer or members of the general public.
Instead of your having to shell out funds for the claim, the money will come
from the insurance company instead where you got your public liability insurance
Depending on the nature of your business, the public liability insurance plan
will cover the damages paid to members of the public for:
Injuries sustained from accidents which occurred within your business premises.
Damage to property as a result of using faulty products manufactured by your
Any inconvenience resulting from your company’s business activities.
The most effective illustration of why most businesses need public liability
insurance is this. Let us say that a client walks into your office to sign some
paperwork. Unfortunately, he or she trips from an exposed bunch of cables which
was carelessly left there by one of your employees. The client can sue for any
injuries sustained as a result of the falling or slipping accident.
What are you supposed to do in case the client files a claim for compensation?
When you have a public liability insurance plan, you would not have to pay for
the damages yourself because the risk has already been transferred to the
How Much Is Public Liability Insurance?
Next, we look at the cost of public liability insurance? Whatever the size of
your business, it pays to purchase this plan and it is in fact a requirement to
protect your company if it is operating in the UK. Here are a few more essential
information about how much is public liability insurance:
You are not required by law to have public liability insurance in the UK if you
are a small business owner, a small trader, a partnership or a corporation, but
it is very much in your business interested to have it in place. It also pays to
know how much public liability insurance costs if you are operating in a home
If you are thinking of costs and wondering how much is public liability insurance
, it can vary
enormously depending on the size and nature of your business. In terms of the
level of cover that you need, small business owners should have £1 million to
protect their business. The larger your business is, the higher the level of
public liability insurance cover you should have, and therefore the more it will
cost. For instance, mid-scale to large entrepreneurs need to have anywhere from
£5 to £10 million in public liability insurance coverage.
Finding The Best Public Liability Insurance Company
After determining the cost of public liability insurance, what are the things
that you need to look for when hiring an insurance company? Since you are
dealing with large amounts of cover, it definitely pays to go with an insurance
company which specialises in handling public liability insurance claims for
business owners. You can use the recommendation on the homepage of this site to
compare all the best insurance companies in one go.
Make a comparison of the costs offered by each company to know how much is
public liability insurance if you will hire them. Finally, make sure to go with
an insurance company that has a reputation of being reliable. After all, you are
entrusting your business in their hands.
In the event that you unfortunately have to deal with a lawsuit filed by a
client, customer or members of the general public who got inconvenienced from
doing business with you, you can rest assured that the public liability
insurance plan that you have gives your business ample financial protection,
thereby reducing the risks of possible financial ruin.