Costs and pricing
Part of Public liability insurance: what affects the cost?
Public liability insurance: what affects the cost?
Public liability insurance costs depend on trade, turnover and location. See an illustrative low-risk price range and ways to compare cover.
What to take away
- Public liability (PL) cover is not compulsory for most UK firms, but customers, landlords and event organisers routinely ask for proof before letting you work.
- Three factors move the price mostyour trade, your turnover, and where you operate.
- Illustrative premiums for low-risk small firms sit near £60 to £150 a year for £1m of cover, while higher-risk trades run into several hundred pounds.
- The lowest quote is not automatically the best value. Compare limits, excesses and exclusions.
What insurers are pricing
Public liability insurance pays third parties who are injured, or whose property you damage, while you are working. It does not cover your own tools, your staff's injuries or faulty advice.
Insurers estimate two things: how often claims happen, and what they cost to settle. The trade shapes both far more than the size of the business does.
Claims costs in England and Wales follow specific rules for personal injury cases. Part 2 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 banned referral fees for personal injury claims and introduced qualified one-way costs shifting for many of them.
An illustrative premium range
Illustrative quotes for low-risk small firms sit near £60 to £150 a year for £1m of cover. This is a guide, not a market average; each insurer sets its own rates.
Illustrative premiums by trade
- Office-based consultant£60 to £90
- Mobile beauty therapist£70 to £120
- Domestic cleaner£80 to £140
- Gardener or landscaper£110 to £220
- Jobbing builder£300 to £700
- Scaffolder£600 to £1,500
Costs beyond the quoted premium include insurance premium tax, broker fees and losses you carry below the excess, so compare the whole arrangement rather than the headline rate.
How turnover, trade and location change the quote
Turnover is the usual rating basis. A firm turning over £50,000 is a smaller risk than one turning over £500,000, even when the work is identical. Some insurers rate on employee numbers or contract value instead, so check which basis is used.
Trade decides which insurers will even look at you. Many standard insurers write consultants, shops and offices but decline roofing, demolition and work at height. The specialist market that remains charges for that risk.
Location changes the picture across the UK. Dense city-centre work brings more foot traffic and more third-party property nearby. Insurers also restrict or load certain postcodes, and work outside Great Britain may fall outside a standard policy's territorial limits.
Claims history follows the business rather than the policy. Insurers ask for several years of claims, and one settled claim can affect the price for years afterwards.
Builders and plumbers usually need more than PL alone. Tradesman insurance for builders and plumbers combines public liability with tools and van cover, which is often cheaper than three separate policies.
Getting a comparable quote in four steps
- Write down your turnover, employee numbers, subcontractor use and every trade you carry out. Understating any of these can leave you without cover.
- Choose the limit before you shop. Clients often ask for £2m, £5m or £10m, while £1m is a common starting point for low-risk work.
- Give two or three brokers the same facts on the same day, so the quotes are genuinely comparable.
- Compare the excess, the exclusions and the claims process, not just the price.
Ask each broker what the quote assumes. Assumptions you cannot meet are the most common reason a cheap premium turns into a refused claim.
Four steps to a comparable quote
- Write down turnover, employees, subcontractors, trades
- Choose the limit before you shop
- Give two or three brokers the same facts
- Compare excess, exclusions and claims process
Where employers' liability fits
Employers' liability insurance is a separate cover and, for most employers in Great Britain, it is compulsory. GOV.UK's guidance on employers' liability insurance confirms the £5m minimum cover that applies to most employers, with narrow exemptions. Northern Ireland has its own equivalent rules.
Public liability carries no such statutory duty for most firms. Buy it because a contract, a lease or a client requires it, and choose the limit that matches what you are being asked to sign.
Common questions
Is public liability insurance a legal requirement for small businesses?
No, not for most. It becomes effectively compulsory when a client, landlord or venue makes it a condition of the work.
How much does public liability insurance cost for a sole trader?
Illustrative quotes for low-risk sole traders often fall between £60 and £150 a year for £1m of cover. Trade, turnover and location can push that figure well past £500.
Does turnover change the premium?
Yes. Turnover is the standard rating basis, so a higher figure normally means a higher premium even when the work has not changed.
Should I always take the cheapest quote?
No. Compare the limit against what your clients ask for, and read the exclusions before deciding.
