Liability insurance is one of the options available to you when you purchase commercial insurance. Depending on your circumstances, the price of this cover may vary. Below, we look at how much liability insurance can cost and what can affect the price of your premium.
what is liability insurance?
Liability insurance is a type of business insurance that can cover successful claims against you if a member of the public is injured, sick or dies because of your job, or if your property is lost or damaged.
If a member of the public made a successful claim, your business could be responsible for paying compensation, legal fees, and medical costs (if any). liability insurance may pay to cover these costs.
Liability insurance is not a legal requirement, but may be worth considering if you have even a little contact with the public.
» more: do I need civil liability insurance?
how much does liability insurance cost?
Price for liability insurance will vary based on your business’s individual needs and circumstances.
For example, if your job is high-risk, you may have to pay more for your public liability coverage than a company that operates in a low-risk environment.
For some businesses, liability insurance can cost just a few pounds a month, while for others it can cost much more. To get an accurate idea of how much it would cost your business, you can get a quote that takes into account your specific circumstances.
In addition to your premium, you may have to pay an excess if you file a claim. this is the amount you pay for each claim before your insurer covers the rest. the cost of your excess is agreed at the time of contracting your policy.
what can affect the price of civil liability insurance?
The cost of your liability insurance coverage may vary depending on details such as:
- the nature of your business
- the size of your business
- your annual billing
- the level of coverage you choose
- how many people (if any) you employ
- where is your company located
- if you have previously made any public liability claims
» more: how much does company insurance cost?
How much liability insurance should I get?
The amount of liability insurance you may need depends on the specific circumstances of your business. quotes and policies can be tailored to suit your requirements, so it’s worth speaking with an insurer to arrange the right amount of cover for your business.
Your coverage limit is the most your insurer would pay if you filed a claim. Common claims limits range from £1 million to £5 million, although the level of cover offered varies by provider and some will offer more.
If you work in a high-risk profession, you may want to consider a higher level of liability insurance. For example, if you are an electrician, builder, or cleaner who works with dangerous tools or chemicals that could cause serious injury or damage.
Clients may request that you have a certain level of coverage before agreeing to work with you. for example, public sector clients generally require you to have at least £5 million worth of insurance.
You should bear in mind that you will be responsible for compensating any deficit not covered by your policy if a loss exceeds your coverage limit.
Also, you should consider whether you could afford the cost of a claim if you didn’t have insurance.
get a liability insurance quote
To find out how much liability coverage might cost for your business, it’s a good idea to get a quote from a provider. this will be tailored to your specific circumstances to reflect how much you could pay for your policy.
You can purchase liability insurance on its own or as part of a larger commercial insurance package, depending on your needs. If you’re also looking to purchase product liability insurance or employer liability insurance, for example, you may want to consider a combination policy with the same provider.
It is also possible to take out civil liability insurance for events, including one-day activities.
» compare: liability insurance
image source: getty images