Buyer's Guide To Public Liability Insurance
Having had enough of making money for someone else, I recently decided to quit my existing job to pursue my dreams of setting up my own business. There is so much to think about when setting up your own business and public liability insurance is usually way down the list of things you have to consider. Prior to my research into setting up my own company, I did not even know what public liability insurance meant. After some research I understood how important it is to cover you against any injury claims that may happen as a result of my business.
It seems like every time I switch on the TV these days, I see those annoying No Win No Fee advertisements which has created a blame culture throughout our country and incentivises people to claim for any small injury that was not their fault. Claim figures have gone up year on year so taking out public liability insurance has never been so important to businesses.
Public Liability Insurance is designed to cover injury related bills which happened as the result of your businesses actions. Fully comprehensive public liability insurance will cover any legal fees, expenses and hospital treatments so no expenses will come out of your business running costs. Depending on the type of injury, this could save you tens of thousands of pounds in legal fees alone if a serious accident was to happen as a result of your work.
The price of Public Liability Insurance depends highly on the profession and how my clients you service per year. For example, someone like me who will be visiting customers' homes in order to fix and upgrade computers the risk is relatively small, after all, how much harm could I do fixing computers. If you were a plumber or a doctor for instance, you would expect the public liability premiums to be sky high as there are so many scenarios that could warrant a payout of some kind.
Public liability insurance is not necessary required for your business to start trading as it is not a legal requirement unless you are working for a horse riding school (a very high risk of injuring your clients). Could someone like me get away with not paying for Public Liability Insurance, potentially yes but it is a bit of a gamble. If I did not have Public Liability Insurance and I caused an accident, the cost of the legal & hospital fees might be enough to send me out of business. It is also important to note that some customers might not even let you enter their premises without the proper insurance but I imagine this would very rarely happen unless you were working with a large corporation.
So where is the best place to buy Public Liability Insurance? Tower Gate Insurance is the name that first comes to mind as I done some work for them in the past. Having been on the inside I can say that they are certainly not the cheapest option but their cover is certainly comprehensive. When you buy car insurance you can pay £500 or £700 for the same vehicle however the lower priced insurance might not pay out for certain things that the more expensive option would. The same applies for Public Liability Insurance. Simple Business is an online service similar to Moneysupermarket.com but specialising in business insurance. If you want the best price for Public Liability Insurance I would suggest visiting simplybusiness.co.uk and filling out a quote form. Of course the traditional price comparison websites will provide you with public liability insurance quotes however there are a number of unique offers only to be found on Simply Business that you will not find a consumer driven comparison site.
Average annual costs
The cost of your public liability depends on many factors and one of the most important ones is your trade. Average price for builders is £278, while for carpenters is £126. Some small businesses pay even as little as £40 per year.
Another huge factor that affects the cost of your public liability insurance quote is your turnover. The higher it is, the pricier your quote gets.