The Public Liability Insurance Blog

How much cover is the right amount?

Once you’ve decided on what sort of cover you should be taking out, how do you decide on the level of cover?

Something like public liability insurance ordinarily comes with either £1m, £2m or £5m of cover, so how do you decide on what you need?

Legal requirements

Sometimes, the decision can be made for you. With employers’ liability as an example, the number of staff you employ can dictate what level of employers’ liability insurance you are required to take out. Cover of £5m is the ordinary minimum, but it can scale up to £10m in some cases.

Client requirements

The decision of how much cover you need can also be made by other businesses or people that you want to work for. Something that a lot of tradesmen discover is that if they are working with larger corporate clients, they will demand a set level of public liability insurance is in place before they can start work with them.

This can be frustrating in some cases, but that client is simply protecting their interests and making sure it can prove that it has done everything it can to ensure the business it is hiring is responsible.

Your discretion

When the decision can’t be made for you, then you have to make a judgement call yourself. Unfortunately there is no real right answer.

Your best approach is for you to assess your risks and work out where your weaknesses are. Then you just need to make a call as to how serious you think your risks might be and just how much damage could be caused by an accident in that area.

Bear in mind that when it comes to personal injury claims that you could feasibly face, although it doesn’t happen very often, these can reach the millions if you are particularly unlucky, so unleash the inner pessimist when thinking these things through. Any decent broker will be able to guide you on these matters, but get a firm idea of what you need in place first.