How much public liability cover do I need?
Towergate can offer public liability insurance policies with cover from £1 million up to £10 million or higher. The amount you need will depend on several aspects:
- Your business activities
- The type of locations and environments you are working in
- The processes involved, particularly if these are of a high risk nature involving any application of heat-work
When you are contracting with companies, please check with them to find out if there is a minimum amount of public liability insurance required.
Is public liability insurance a legal requirement in the UK?
Public liability insurance is a legal requirement in the UK if you employ staff.
How much does public liability insurance cost?
The cost of your public liability insurance will depend on what your business is and therefore how much cover you require. This will determine the level of risk for the insurer.
Factors that affect public liability insurance cost
Your public liability insurance cost will depend on a number of factors, including:
- Your trade or profession and the hazards associated with your activities – e.g. work at height, depth, use of heat (blow lamps, welding equipment)
- Whether you are you working on new or existing properties, domestic or commercial
- The type of locations worked at, any hazardous locations such as ports, airports, tunnels, gas/oil works etc
- Where in the world you work and the activities carried out - e.g UK-only and/or Europe, or worldwide – including or excluding USA/Canada
- Number of employees, clerical or manual, and if you have any sub-contractors
- The limit of indemnity you require - £1 million, £2 million, £3 million, £5 million, £10 million or higher
- What is included in your public liability insurance quote (standard level or extra covers)
- Your past claims history
- For larger businesses, estimated annual payments to direct employees - clerical/manual, labour-only and/or bona-fide sub-contractors
- The size of your business e.g. turnover (the more work you do, the greater the risk exposure and the higher the premium)
- Your risk management and health and safety record
How much does Towergate public liability insurance cost?
Towergate offer a range of public liability insurance policies with cover starting from as little as £8.19 per month*. We offer a range of levels of cover up to £10 million to suit all sizes of businesses – whether large or small - and budgets that are high or cheap.
Get a public liability insurance quote today to see how much your policy would be.
Is public liability insurance required by law?
Public liability insurance is not usually a legal requirement like employer’s liability insurance, but there aren’t many businesses that can safely operate without this protection. Despite all the precautions under the sun, accidents can and will happen, and being vulnerable to a law suit can spell disaster for a growing business. As our public liability insurance can cover up to £10 million, the importance of having this protection is clear.
Given this, it is likely other organisations will not work with you unless you have public liability insurance, and local authorities often require businesses in their area to have the cover in place before trading.
While public liability insurance is therefore not required by law, it is likely to be necessary for your business to operate successfully.
Is public liability insurance tax deductible for business insurance?
Yes, public liability insurance is tax deductible when calculating taxable profit, as an 'allowable expense' (an expense you can deduct when calculating taxable profit for your tax return). It is included in HMRC’s definition of allowable expenses.
When you buy your public liability insurance, be sure to keep your receipt and your policy documents safe so that you can show your tax calculations if your business is checked by HMRC. Also, if you have an accountant that does your tax return, you will need these documents to show them the cost of your cover so they can calculate it correctly and ensure your public liability insurance is tax deductible.
What's the difference between public liability and employers' liability?
While public liability insurance provides cover against claims from members of the public, employers' liability insurance protects against claims from employees. Businesses will typically have bother covers.
I have heard that someone wants to make a claim against me - what do I do now?
As soon as you become aware of a claim or potential claim being made against you for injury or damage:
- Notify us so that we may alert your insurers
- Do not ignore or dispose of any letters from any representative of or anyone making a claim against you. The claim is unlikely to go away and the situation will only get worse if not attended to promptly
- Pass all correspondence on to us unanswered
One of my employees had just had an accident at work, what should I do?
We recommend that you:
- Report all accidents to your insurers
- Meet your legal obligation to record accidents in your accident book
- Do not accept responsibility or agree to pay compensation even if you think it is obvious that it is your fault
- Allow your insurers to investigate and advise you of the best course of action to be taken
If you accept liability before referral to your insurers then you could prejudice your and your insurers' ability to deal with any claim made against you.
Can I pay in instalments?
To help you spread the cost of your premiums, we offer a quick and easy direct debit scheme for spreading payment over ten months. Please visit our dedicated Direct Debit page to find out more.
*10 monthly instalments, includes 12% additional interest and 12% Insurance Premium Tax. Cover includes £1 million public liability, one manual principle partner proprietor or director, and no claims. Covers subject to underwriter acceptance; exclude Northern Ireland. Price from as little as £81.90 a year applies to carpenter work only working on on residential and small commercial properties excluding the use of fixed woodworking machinery. Details correct as of 1 June 2020