The Public Liability Insurance Blog

The public liability insurance cost

cashHow much does public liability insurance cost? It’s a question that is typed into search engines on a regular basis and muttered by aggravated responsible small business owners everywhere once they get to the stage of acknowledging that they probably should investigate insurance options. The basic answer is an easy one to find out. There are some large “compare quotes” buttons on our homepage that will take you through a quote comparison engine and present you with a set of quotes from our panel of insurers for various trades and professions so feel free to stop reading this and head over there straight away.

The more in depth answer requires a slightly different question: How much does not having public liability insurance cost?

Surely you mean saving

A while back, we wrote about how insurance is a waste of money. The summary if you don’t want to click away is that it is a waste of money if it does not cover you adequately or if you’ve submitted incorrect details.

On the face of it, insurance is an expense that nobody wants to spend, but looked at in the grand scheme of things, everything is an expense that you don’t want to spend (with the possible exception of donating to charity if you’re not being bullied into it at clipboard-point). Even entertainment and leisure expenditure isn’t exactly made with a grin on your face.

Keep looking at the bigger picture however and you can see where we’re going with this. The longer you trade, the longer you risk causing a public liability claim of some description and when you’re playing dice with the universe like this, you will eventually lose. The universe is after all very patient and can stay out way past your bedtime.

A claim vs accumulated premiums

Having recently trawled through some of our claim statistics, not all public liability claims are as big as the total amount of cover offered might suggest, although some claims did head deep into six figures. Despite this, even smaller claims can dwarf accumulated premiums over the years. Of course there is always that risk that you will hit the alter-jackpot and find yourself faced with the £1m+ personal injury claim levelled against you.

An insurer will always try and make money out of you. This does not mean they will con you, but the analysis of the risk you face is carefully calculated to skew the chances of making money in the favour of the insurance provider. If their gamble goes wrong however, they become incredibly out of pocket on your particular policy, but this is just how insurance works. Far from being the leach that some assume it is, insurance is simply a type of gambling where the house is taking the risk and when you lose in life, it pays out.

The cost

The cost of not having public liability insurance can simply be financial ruin. Without an adequate policy that covers your business, you can find yourself with an insurmountable fine that you have no serious hope of paying off as opposed to a manageable annual premium that you could have been paying.

It’s an easy mistake to make, considering that public liability insurance is not a compulsory policy, but you should do everything in your power not to make it.

Provided by YOUR Insurance, a broker specialising in public liability insurance.